Sellers proceeds is the amount of money the seller receives when selling a house and after everything else has been paid at closing. Every seller wants the most proceeds from their sale as possible. Pricing the house correctly is the biggest thing a seller can do to increase their proceeds. Let’s review what the research says about how to price your home. Find that sweet spot so buyers flock to see it and the offers come in at or above the list price. Marketing matters too. Specifically, the words used to describe the house can have a bigger impact than the high-quality listing photos. And the photos matter because it is your first showing. Let’s talk about what sellers should expect from selling a home on their own.
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On the page below, you will find answers to some of the most frequently asked questions about how to increase seller proceeds. We reviewed the research on what influences buyers’ likelihood to pay more when buying a home. You will find more in-depth information on other home-selling topics on the linked pages below.
We hope you find this information useful. If you have any questions, please reach out to us!
If you are also buying, there are a lot more moving parts that need to be coordinated. Check out our Buyers Pages, and please download a copy of our book for Tallahassee Home Buyers.
Calculating Sellers Proceeds: ‘Typical’ Closing Costs for Tallahassee Home Sellers
We have posted a blog article covering the breakdown of the typical closing costs involved in a Tallahassee real estate transaction.
For the seller, the commission negotiated with the listing agent is probably the biggest expense.
When Do Sellers Make More From Sellers Proceeds By Listing With a Realtor?
Here’s what the real estate researchers have found about Realtors Versus Owners on Sellers Proceeds:
- Miller found that only about a third of homes listed by the owners sold successfully (Miller, 1990). That excluded owner-agents (who sold for more) and was before the prevalence of home-searching apps and websites. These sites have significantly changed how Realtors market homes and should have helped sellers looking for buyers on their own.
- Some researchers have found that agents can help sellers increase their sales prices through specific marketing strategies (Allen, Cadena, Rutherford, & Rutherford, 2015).
- In a survey of home sellers, those who hired an agent felt supported by the agent’s facilitation of the transaction, buyer screening, and communication throughout the process (Larceneaux, Lefebvre, & Simon, 2015).
- Many researchers have found that homes sold through the MLS sell faster (Hendel, Aviv, Ortalo-Magne, 2009; Huang & Rutherford, 2007; Jia & Pathak, 2010).
- When looking at broker experience, pricing strategy, and luck, researchers found that agent experience increases the odds that a house sells above the listed price (Zahirovic-Herbert, Waller, & Turnbull, 2021). Researchers said, “It appears that experienced agents use more effective marketing strategies in this regard than do their less experienced counterparts.”
- In the most comprehensive study comparing homes sold by owners without an agent and homes sold by agents, researchers found that agents are worth more than the cost of their commissions (Miller, Sanchez, Sklarz, & Vamosiu, 2021). Looking at over 70,000 single-family home sales, homes sold by agents were 7.4% to 8.8% higher priced than homes sold by owners. After accounting for a 6% commission, “FSBO sellers receive approximately 2% lower net revenue compared to sellers that use agents, or about $16,000 less net revenue for the average home in Los Angeles County.”
References of Peer-Reviewed Journal Articles: Realtors Impact on Sellers Proceeds
Miller, N. (1990). FSBO Sales Versus Traditional Sales. Ohio State Center for Real Estate Research Papers.
Allen, M. T., Cadena, A., Rutherford, J., & Rutherford, R. C. (2015). Effects of real estate brokers’ marketing strategies: Public open houses, broker open houses, MLS virtual tours, and MLS photographs. Journal of Real Estate Research, 37(3), 343–369.
Larceneux, F., Lefebvre, T., & Simon, A. (2015). What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model. Journal of Housing Economics, 29, 72–82.
Hendel, I., Aviv N., & Ortalo-Magné, F. (2009). The relative performance of real estate marketing platforms: MLS versus FSBOMadison.com. American Economic Review, 99(5), 1878–1898.
Huang, B., & Rutherford, R. (2007). Who you going to call? Performance of realtors and non-realtors in a MLS setting. The Journal of Real Estate Finance and Economics, 35(1), 77–93.
Jia, P., & Pathak, P. A. (2010). The impact of commissions on home sales in greater Boston. American Economic Review, 100(2), 475–479.
Zahirovic-Herbert, V., Waller, B. D., & Turnbull, G. K. (2021) Properties that Sell at or above Listing Price: Strategic Pricing, Better Broker, or Just Dumb Luck? The Journal of Real Estate Finance and Economics, 60, 53–76.
Miller, N., Sanchez, A., Sklarz, M., & Vamosiu, A. (2021) Saving Real Estate Commissions at Any Price: Does Having a Real Estate Agent Influence the Sales Price of a Home?, Journal of Housing Research, 30, 175-206.
What does the research say about pricing’s impact on sellers proceeds?
The longer a home is on the market, the less the sellers proceeds.
What is a comparable property? How are comparable properties found?
When is the best time to list a home in Tallahassee?
What is a pool worth when calculating a home’s price?
How are average days on market calculated?
Should rural homes be priced the same as homes within city limits?
Which marketing has the biggest impact on increasing sellers proceeds?
Do open houses help sell a home?
How do I know that my Realtor’s marketing is working?
Does it matter to sellers proceeds what words are used in the house’s description?
How do sellers know who to market their homes to, and how do they find buyers?
How Do I Keep My Family Safe and Protect From Theft?
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Every seller wants to earn as much for sellers proceeds when selling their home as possible. Hiring an experienced agent will help you put more money in your pocket, and will save you stress and aggravation. Contact us when you are ready to list your home! We look forward to negotiating on your behalf.