Northwestern University study supports 'for sale by owner'

Robyn Sansone, owner of www.WNYbyOwner.com, said a recent study supports the ability of homeowners to sell their property without using an agent.

She said a study conducted by two Northwestern University economists supports that homeowners reap significant financial rewards when selling on their own.

The study, published on Northwestern's Web site on June 8, analyzed data from more than 7,800 respondents in Madison, Wis., from 1998 to 2004. It compared the results of multiple listing service sales versus sales with the local for-sale-by-owner Web site.

"The exclusivity value of the MLS is diminishing as buyers use the Internet as a primary search tool," Sansone said. "While in the past there may have been true value in using an agent, today those with no real estate experience are capable of selling on their own."

According to Sansone, the use of the Internet has put the for-sale-by-owner individual on a level playing field with an experienced agent.

"What you simply need is to be priced right with online exposure," she said, adding that the Northwestern study confirms what her customers know: "You can do it on your own, and it is worth it."

The study also noted that there can be value in using a traditional agent, but the cost is significant. A $150,000 home can result in a commission of 7 percent, or $10,500.