Key Details:
- New research from Clever Real Estate reveals that 46% of sellers view home selling by owner (FSBO) as the most profitable option. However, sellers using agents achieve higher profits.
- The survey highlights that 77% of sellers prefer agents for ease and speed, with 76% finding their services worth the investment.
- Misconceptions about agent expenses may limit sellers’ potential to maximize profits.
Nearly half of U.S. home sellers mistakenly believe selling by owner is the most profitable option. And yet, sellers using real estate agents reap higher profits despite the perceived costs.
That’s according to new research from Clever Real Estate, which also highlights the key reasons sellers decide to work with an agent rather than go it alone.
According to the latest Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the share of home sellers choosing the for-sale-by-owner route (FSBO) has dropped to a record-low 6%.
Read on for a closer look at the most revealing numbers.
Perceptions vs. Reality in Home-Selling Methods
Forty-six percent of the home sellers in Clever’s survey believe selling by owner (aka “for-sale-by-owner” or FSBO) is the most profitable way to sell a home. As for the other end of that spectrum, 44% believe selling to a cash buyer company is the least profitable method.
Meanwhile, sellers who used an agent made the highest profits, despite the higher upfront costs.
Nearly seven in 10 sellers (69%) see working with an agent as the most expensive route, which drives some to FSBO—which 51% of respondents see as the least expensive, while 66% also consider it the most difficult.
Nearly six in ten (58%) consider using an agent as the easiest way to sell, and 40% say it’s the fastest way.
Perceptions vs. Reality in Home-Selling Methods
According to the NAR report mentioned earlier, 90% of home sellers transacting between June 2023 and June 2024 worked with a real estate agent.
According to Clever’s survey results, 77% of home sellers who transacted over the past five years worked with an agent, compared to just 10% who went the FSBO route. Nearly one-quarter of the 1,000 sellers surveyed consider real estate agents the best overall option, with 67% favoring traditional real estate agents and 6% choosing discount brokers.
Among those who worked with an agent, 76% considered their services worth the cost.
More than one in ten (12%) of respondents see FSBO as the best method, while nearly one-quarter (24%) consider it the worst. Nearly half the past FSBO sellers in the survey (47%) recommend it, while 53% advise against it.
This seems like a good place to mention seller regrets. Overall, 16% of home sellers regret the home selling option they chose. Over one-quarter of those who sold to cash buyer companies (27%) expressed regret over doing so, with 61% seeing these companies as scams.
About one-third of respondents who sold to cash buyer companies (35%) or iBuyers (33%) say they would choose a different way to sell.
Key Selling Priorities
Speaking of priorities when it comes to home selling, 48% prioritize selling at the highest possible price, making it priority number one. That’s more than twice the share of sellers (20%) who prioritize a hassle-free process.
So, it’s awfully convenient that working with an agent delivers on both—with more besides.
Missed Opportunities Due to Misconceptions
Unfortunately, misinformation and mistaken beliefs about the cost of working with a real estate agent still prevent some sellers from maximizing their profits. Nearly four in ten (38%) of the respondents who didn’t use an agent believe their home would have sold for more with one.
All the more reason for you to show your value as a real estate professional—in your communications with clients and prospects as well as in your marketing content.
Read the full survey report for more information.
What are you doing to help more sellers avoid regrets?
