Real World Example of ByTheOwner.com vs Real Estate Agent
Below is an example of 2 homes sold in 2006.
Two neighbours listed their homes for sale. One listed with ByTheOwner.com and the other listed with a real estate agent. Here is a summary of the final outcome:
The home listed on ByTheOwner.com was originally purchased for 30K more than the neighbour that listed with the real estate agent. The owner received lots of calls from agents telling him that he would never sell privately. The owner new that he had a great home, he ignored the agents, had open houses, and he sold privately. He sold privately in 2 months for $460,000 and the owner kept $460,000 from the sale of his home.
The neighbour who listed with an agent, originally purchased his home for 30K less that the home selling privately. The agent listed the home at $440,000. After not selling in the first month, the agent lowered the price to $430,000. Eventually the neighbour sold in 3 months for $414,000 with the agent. After commission (5% = $20,700) and GST ($1,242) the owner took home approximately $392,058. Let’s see who saved more money:
Home SOLD on ByTheOwner.com:
Bought = $300,000
Sold = $460,000
ByTheOwner fees = ($300)
Profit = $159,700
Home SOLD by Real Estate Agent:
Bought = $270,000
Sold = $414,000
Agent Fees = ($21,942)
Profit = $112,058
The owner who sold on ByTheOwner.com has $37,642 more money in his pocket.
CONCLUSION - Real Estate agents do not get you a higher price and ByTheOwner.com’s customers save a lot of money.
