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There are loads of studies like this one (http://www-siepr.stanford.edu/workp/swp07001.pdf) from reputed universities that say realtors: don't increase selling price, can even cause a reduction in selling price (if its dual representation) etc.
For example, this one says: "We find no evidence that the use of a broker leads to higher av- erage selling prices, or that it significantly alters average initial asking prices."
So why do people continue to use agents to sell their property? Is it inertia? Something else? The study does conclude homes sell slightly faster with brokers but I doubt that's the reason people pay 5-6% commission?
Please answers from actual sellers not realtors speculating why people like to use them!
As a seller, having a good realtor manage everything really helps. I don't like negotiating, pricing, marketing, or any of that. It's worth every penny to have an experienced professional take on that pain and analyze the market so that I'm not looking like a boob. I don't know why real estate professionals get raked over the coals so much. There are garbage ones, but ones worth their salt are gems indeed. We will fork over $19,000 but given all of what we've been through? Well worth every penny. Besides, they only get half of that commission.
There is so little to compare a FSBO with a R Sold property. How can they have a meaningful sample to survey?
Well I don't think a paid study/advertisement by Colorado realtors compares to an independently funded Stanford study. There are similar studies by Cornell and MIT that reach similar conclusions.
It would be really good to hear from actual sellers as to why they chose to use a realtor/broker.
I'm getting ready to sell a house. I have no desire to do the work myself. I trust my agent to market and sell my house and do all the legwork and upfront negotiations. Basically it's the same reason people take their taxes to a CPA, or take their car to a shop. They could do the work themselves, but why if you don't want to and don't have to.
Well I don't think a paid study/advertisement by Colorado realtors compares to an independently funded Stanford study. There are similar studies by Cornell and MIT that reach similar conclusions.
It would be really good to hear from actual sellers as to why they chose to use a realtor/broker.
This was NOT commissioned by CAR - it was the University of Denver.
Thanks. Lets say all those Stanford, Cornell, MIT studies are correct and realtors don't get you a higher selling price then your effectively paying the commission to save you the time and hassle. Okay that is a reason.
Thanks. Lets say all those Stanford, Cornell, MIT studies are correct and realtors don't get you a higher selling price then your effectively paying the commission to save you the time and hassle. Okay that is a reason.
How did one study become all those?
If you take Texas for example, a non disclosure state, how in the world are Sellers going to figure out the correct market price?
There are loads of studies like this one (http://www-siepr.stanford.edu/workp/swp07001.pdf) from reputed universities that say realtors: don't increase selling price, can even cause a reduction in selling price (if its dual representation) etc.
For example, this one says: "We find no evidence that the use of a broker leads to higher av- erage selling prices, or that it significantly alters average initial asking prices."
So why do people continue to use agents to sell their property? Is it inertia? Something else? The study does conclude homes sell slightly faster with brokers but I doubt that's the reason people pay 5-6% commission?
Please answers from actual sellers not realtors speculating why people like to use them!
The Stanford study was based on areas around campus that were sold by faculty of the university to other faculty. In fact, the homes cannot be sold to non-faculty or staff. It isn't the same thing to sell to a restricted group of people as to perfect strangers. You can't post these homes for sale like regular homes because 99.9% of home buyers were in eligible to buy the homes.
Did you read the study?
I'm not aware of the Cornell or MIT studies. I didn't find them on google so a link would be great.
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