Tom Ruff of The Information Market takes a deeper look at the numbers for August 2014 and compares closed sales on single family homes of “non-subscribers” with closed sales of “subscribers” to the MLS, which basically translates to non-agents vs. agents. Here are some interesting facts about what he found.
• 83.76% of all resale homes sold using an ARMLS Subscriber and the MLS
• 90% of all resale homes that sold over the median price used an ARMLS Subscriber and the MLS
• Single men are slightly less likely to use a Subscriber and the MLS but did 82.53% of the time
• Single women fit the norm using a Subscriber and the MLS 84% of the time
• Married couples are more likely to use a Subscriber and the MLS at 86.08% of the time
Fix & flip investors used an ARMLS® Subscriber 84.34% of the time. These investors clearly know how to value property and their price points as their livelihood depends on buying low and selling high. They don’t need an agent to tell them property values but they need a Subscriber to ensure arms-length transactions. This should be a shock to you! The perception of many is that they don’t use REALTORS®.
Many would argue that just because the majority of people still use a REALTOR, it doesn’t mean that you will sell your home for more money. In fact, logic would say that you will net less money because you will pay a 6% commission on average. Well, here is where the data is currently proving otherwise for the Phoenix Metro Market.
In order to take out the natural bias that sellers with higher priced homes are more likely to use an agent than those with lower priced homes, Tom Ruff starts comparing the Full Cash Value Ratio of a property to the County Assessor’s value. A property valued by the county assessor for $100,000 that also sold for $100,000 would have a Full Cash Value Ratio of 100%. His results for August 2014, drum roll please….“using an ARMLS Subscriber increases value for the seller by 9.6%”
So, even if you pay a 6-7% commission to your real estate agent, you will be netting on average 3-4.6% more money when your home is sold. Add that to how much work your agent will be doing instead of you and you will also end up with more time to do other things. If you are thinking about selling your home, don’t wait, give The James Wehner Team a call today to find out how much you may be able to sell your home for. We are ready to do all of the hard work for you! 480-656-9125
Click here to read the full report from Tom Ruff at The Information Market.