Monday, November 1, 2010

Home Sellers Using Real Estate Brokers Do Not Get A Higher Price

From Kellogg Insight, "The Superfluousness of Realtors: Homes sold through Realtors don’t garner a price premium over ones sold by owners" based on the research of Igal Hendel, Aviv Nevo And François Ortalo-Magné:
Their research spans the years 1998 to 2004, and its conclusions up-end the received wisdom passed on by real estate agents themselves, whose trade groups have in the past argued that agents’ commissions are justified by their ability to achieve a higher sale price.

“Our key finding is that Realtors do not offset the cost of their commission; they do not get you a higher price,” says Nevo. “Your cost for the Realtor is your full commission.”
The complete article is available here.

2 comments :

  1. Well, that's a fact that real estate is commission based. However, the key point here is you know the ups and down of the real estate market to merely determine when to buy and to sell property. Today, there are countries that have a booming industry such as singapore. buying a condo in the country is much easier compare to other countries simply because they have a not so strict rules as long as you are a PR and has the eligibility to own a unit. http://www.property2day.com/individuals-buying-condos-singapore/

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  2. Well, hiring a real estate agent is a must thing since there is a slight fall in the price in buying and selling HDB here in singapore is tough at this time. The idea is that real estate agent knows the valuation of your property more than you can. In addtional to that, property market is unstable and of course you should also know when is the best time to buy or sell.

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