Weh-Hey! Independent feedback for Real Estate Agents

Realtor vs FSBO

A recent in-depth statistical study of the relative merits of using a real estate agent or going the FSBO route has been published by Igal Hendel, Aviv Nevo and François Ortalo-Magné.

The study analyses thousands of home sales and provides detailed support for the following conclusions:
1. Realtors sell houses quicker than FSBO's
2. FSBO houses sell for more than those sold by Realtors

Further points of interest:
3. 22% of FSBO sellers switch to a Realtor
4. 0.2% of sellers switch from a Realtor to FSBO

The value of having a Realtor is in saving time, providing knowledge and generating a more intense market exposure. This is what you pay commission for.

For more information, see the report The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.co. Note that the report applies to a specific real estate market.

The above facts are based on US information. What can be found in Canada is that FSBOs take longer to sell and normally less for what they are asking. When a market slows it is really hard for FSBOs to sell as they do not have the marketing advantage and network that realtors have access to - in particular the mls.ca system.

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