Survey Reveals 46% of Home Sellers Mistakenly Believe Selling by Owner Is Most Profitable

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Nov 20, 2024, 08:46 ET

A survey of recent home sellers found that those who use agents actually bring in the most
profit, even if the upfront expenses are higher.

ST. LOUIS, Nov. 20, 2024 /PRNewswire/ -- Nearly half of American home sellers (46%) incorrectly believe that selling "for sale by owner" (FSBO) is the most profitable route, while selling to a cash buyer company is seen as the least profitable (44%), according to new research from Clever Real Estate, a St. Louis-based real estate company.

According to the survey, about 7 in 10 sellers (69%) believe that selling with an agent is the most expensive option, leading some to pursue FSBO. However, those who used an agent actually achieved the highest profits, despite having to pay more upfront.

What is the most and least profitable way to sell a home?

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Despite the perception of agents being costly, 77% of recent sellers used an agent — nearly eight times the number who opted for a FSBO transaction (10%), the next most common method. Sellers see additional benefits to working with an agent, with 58% identifying it as the easiest method and 40% as the fastest.

Nearly three-quarters of recent sellers (73%) consider an agent the best overall way to sell a home. Two-thirds (67%) prefer a traditional agent, while 6% opted for discount brokers.

Among sellers who used an agent, 76% feel their services were worth what they paid. Of those who did not use an agent, 38% believe their home would have sold for more if they did.

Although more than half of sellers (51%) believe a FSBO sale is the least expensive, two-thirds (66%) also say it's the most difficult. Opinions on FSBO are split, with 12% saying it's the best way to sell, while 24% label it the worst. Among past FSBO sellers, 47% recommend it, but 53% advise against it.

Just 16% of overall respondents say they regret the selling method they used, but 27% of those who sold to cash home buyer companies feel this way. Even more, two-thirds of sellers (61%) go as far as saying cash buyer companies are scams.

With nearly half of sellers (48%) ranking selling for the highest price as their top priority — over twice as many as those who prioritize a hassle-free process (20%) — misconceptions about the expense of using an agent may be limiting sellers' potential profits.

Read the full report at: https://listwithclever.com/research/how-to-sell-your-house-2024

About Clever Real Estate
Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 3,000+ customer reviews. Since launching in 2017, Clever has reached $11.4 billion in real estate sold, matched 138,000+ customers with realtors, and saved consumers over $170 million on commission fees. Clever's network spans 15,000 agents across all 50 states.

Please contact Nicole Lehman with any questions or to arrange an interview.

CONTACT:
Nicole Lehman
Clever Real Estate
[email protected]
724-719-0406

SOURCE Clever Real Estate