Consumer Reports Finds That Home Sellers Get More Money for Their Home When Selling without an Agent

Business Wire, August 21, 2008

NEW YORK -- According to a study conducted by Consumer Reports published in the September 2008 issue, home sellers who used a real estate agent received less money for their homes than sellers who sold their home without an agent. The study found that homeowners who sold with the help of an agent received $5,000 less, on average, than the home's original asking price. Meanwhile, the study found that almost all people who sold without using an agent received what they originally asked.

"In today's market, where home prices are dropping, it's more important than ever for sellers to maximize their sales price," said Greg Healy, Vice President of Operations for ForSaleByOwner.com. "It's clear from this Consumer Reports research that sellers are better off using a 'for sale by owner' method to sell their homes. Not only will they get their asking price, they'll also avoid paying an expensive commission fee that would only lower the amount they actually receive for their home. For a $300,000 home, the $5,000 price differential and the commission paid to the agent represent a loss to a home seller of more than $20,000."

"Consumer Reports is a well respected publication and its research should help more people understand the financial advantages of selling their own home," added Healy.

The research from Consumer Reports is similar to findings of studies conducted by Northwestern University and Stanford University. Each of those studies found that "for sale by owner" sellers receive more money for their homes than those who use real estate agents to sell their homes.

About ForSaleByOwner.com

ForSaleByOwner.com is the nation's leading for sale by owner website. Since 1999, ForSaleByOwner.com has saved home sellers more than one billion dollars by providing premium Internet marketing services, real estate guidance and information, as well as live customer support, to help customers independently sell their own homes. The company offers a wide range of advertising and real estate resources, modestly priced from $89 to $899. In contrast, a person selling a $300,000 home through a real estate agent would be charged a 6% commission fee and pay approximately $18,000. Prospective homebuyers can browse the ForSaleByOwner.com database of properties at no charge.