Are Realtors Really Worth the 6%? New Study Says No.

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Are Realtors Really Worth It? A new study from Northwestern University concludes: No, not quite. Here’s how The New York Times previewed the study today: ‘The conclusion, in a study to be released today based on home-sales data from 1998 to 2004 in Madison, Wis., is that people in that city who sold their homes through real estate agents typically did not get a higher sale price than people who sold their homes themselves. When the agent’s commission is factored in, the for-sale-by-owner people came out ahead financially.’

From the Northwestern University website: ‘A provocative new study shows that sellers who joined a for-sale-by-owner (FSBO) Web site got at least as much for their homes as sellers who did their real estate business through the use of an agent and the Multiple Listing Service (MLS). Houses sold through the MLS were more likely to sell faster.’

More: ‘The recent study shows that the FSBO sellers ended up with a significantly enhanced net sale price because they didn’t have to pay the brokerage commission that real estate agents charge sellers, generally six percent of a house’s sale price -- $12,000 for a $200,000 home.’

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Photo Credit: Reuters