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Pace Homes and Real Estate: FSBOs net 'significantly' lower profits

By Charles Stallions Property Manager

Property Manager with Charles Stallions Real Estate Services

October 06, 2017 06:00 PM

Pace Homes and Real Estate: Study: FSBOs net 'significantly' lower profits

Sellers who go it alone make less money than they would using a Realtor, but how much? A Collateral Analytics study that looked at same-neighborhood comps found the difference roughly equaled the commission a Realtor would have charged. Read more. The Top 5 Things to Do in Pace 2017 - Must See Attractions in Pace ...

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Topic:: Home Buying

Location:: Florida Santa Rosa County Bagdad

Groups:: Listings By Address; Military Relocations; Perdido Key Florida Happenings; Post Your Properties Here; Property Management Network

Tags:: pace; pensacola; gulf breeze; homes; value; houses; worth; for sale; sell; buy; rent; short sale; foreclosure; pace schools; flat fee; mortgages; fha loans; va; 100 financing; no money down; owner; rebates; military relocation; whiting field

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Mel Ahrens, MBA, Kelly Right Real Estate

Kelly Right Real Estate - Hood River, OR

Customized Choices for your Real Estate Needs

I'm not sure the conclusions can be broadly applied. The study focuses on 13 highly populated counties only. Only 150 counties (of over 3,000 counties) in the US comprise 50% of the population. The study uses AVM methodology as a tool to derive their results. AVM models do not work well in low population housing markets. Extrapolating urban results to rural areas is risky. None of the counties were in Florida; seven of the counties were from western states. It might be a stretch indicating the study is representative of behaviors in Florida.

Also, it does not appear the study excluded Flat Fee Listings, which are typically used by FSBO sellers to advertise in the MLS. Including Flat Fee Listings as agent represented most likely leads to overstating agent represented results and under-representing FSBO results.

And one comment my stat professor consistently mentioned: "Correlation does not necessarily mean causation"

Oct 07, 2017 01:58 AM

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