Posted on 04/14/2025 11:24:25 AM PDT by where's_the_Outrage?
When Jill Langen decided to list her Clarkston, Michigan, home of 25 years for sale last month, she did it without the help of a real estate agent. Seven days later, she had an agreement signed with a buyer and her home was off the market.
Langen’s decision to go it alone isn’t typical among America’s home sellers. Just 6% of home sales last year were for-sale-by-owner (FSBO), an all-time low, according to an annual report by the National Association of Realtors, the trade organization that represents over 1.5 million real estate professionals.
However, some homebuyers and sellers may be looking for alternatives to the traditional real estate agent model after the standard commissions were challenged in a series of lawsuits in 2024 that led to changes in industry practices.
Langen, a 61-year-old higher education administrator, said the industry changes were “very much” on her mind when she decided to bypass a Realtor. Even after new rules for Realtors were enacted last year, most home sellers still pay a commission, averaging about 5% to 6% of their home’s sale price. Langen listed her home for $515,000; a sale at that price with the help of a traditional Realtor might have cost her between $25,750 and $30,900 in commission fees at closing.
For some, working with a Realtor may be worth it. Langen and other home sellers who tried the FSBO route said it takes a significant amount of time — and homework — to successfully sell your own home. And the typical FSBO property sold for $380,000 compared to $435,000 for agent-assisted home sales last year, according to data from NAR. Real estate agents have pointed to this data as evidence that selling a home with a professional results in higher profits.
(Excerpt) Read more at msn.com ...
real estate commissions have Been 6% for decades.
I use “Simply List” where I act as the listing agent through a RE broker and pay a 3% commission to the selling agent. I save thousands of dollars and the company provides a lock box, yard signs and advertises my house in the MLS. I think they charged me $450. But I am a former realtor, mortgage underwriter and mortgage broker. Most people are better off just listing with a realtor and paying 5%-6%.
Dangle a price and time to sell incentive bonus under their nose and see what haapens.
After I retired I flipped a few houses for a nice profit. My daughter was my realtor.
My last house my daughter (who found the property) told me she could not list my house at the price I wanted for multiple reasons including it was way above the neighborhood’s #1 house. No comps. She and I agreed I would do a FSBO. Not an issue with her - we are still close.
I had 2 realtor friends agree that my price was reasonable and not too high. They both said its value would be evident to buyers. I showed house to maybe 10 realtors agreeing to pay them 3% as buyer’s agents. Sold house at my full asking price and had one offer above asking price. Paid buyer’s agent his 3% & happy to do so.
Later had a valuable wooded 5 1/2 acres/building site for 2 houses with 2 perk sites I tried to sell myself w/o success. Retained my daughter for reduced commission (her offer, not my request) and property sold quickly for more than our asking price.
Conclusion: you never know.
BTW - buyers fell in love with house and what I did with it and became friends - that was 2017. Couple downsizing with 4 kids out.
My daughter and son in law bought a great property at a bargain price. It is a horse property 15 minutes from a small city and 20 minutes from a large city. Realtor had it listed for over a year. Realtor listed it like a house in town. No mention that the house was on 5 acres and had horse facilities including a roping arena. The listing left out an entire room that could be office, craft, or bedroom...pictures on listing were crap. Realtor told my daughter she was afraid to show it because it was in the country. It is in a neighborhood of upscale horse properties, cowboy mansions not ghetto area. Why that realtor took the listing is a mystery but the sellers took a bath.
Sold my last three houses without a realtor and without regrets. I didn’t miss agents dragging people with little to no interest in our house on short notice. Not saying I’ll never use an agent again, but I’m leaning in that direction.
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