Your home is one of the biggest assets you own. When you decide to sell your Locust Grove home, many people hire a Realtor® to get the job done. Others prefer to sell their homes independently. While homeowners who decide to take on the home selling task themselves may feel like they are saving money, this may not be the case when you look at the big picture. A recent study completed by BRIGHT MLS found significant benefits for sellers who utilize a Realtor® while selling a house on the MLS versus those who sell the home themselves in our area. Let’s take a look at what they found.
But first… What is the MLS?
The MLS, or multiple listing service, is a database established by cooperating real estate brokers of the properties for sale in an area. In order for a home to be on the MLS, it must be listed with a licensed real estate agent. Through having a common database, Realtors® are able to share and locate homes for their buyer clients and view information about the properties. The big home sale websites like Zillow and Realtor.com get their information from the MLS.
In our area, BRIGHT MLS serves six states and Washington D.C. Between 2019 and the beginning of 2023, eight four percent of the homes sold in the area were listed on the MLS*. Locust Grove home are part of the BRIGHT multiple listing service.
What did the study find?
There are significant financial benefits for sellers that place their home on the MLS.
Homes sold on the MLS sell for more money.
This study found that homes sold on the MLS sell for more money than those comparable ones that are sold independently by homeowners. From 2019 to 2023, comparable homes on the MLS sold for 17.5% more than the homes not on the MLS*.
Why? Realtors® complete CMAs, or comparative market analysis, to help determine the list price of a home. The agents use information retrieved from the MLS of comparable homes that just sold along with their knowledge of the local housing market to determine a listing price. Sellers who don’t have access to this data have to price their Locust Grove home by feeling or by comparing their homes to ones they find on the internet. This leads to underpricing of properties. Without knowing the true market value of a property, sellers can miss out on tens of thousands of dollars.
Homes sold on the MLS reach more buyers and generate competitive offers.
This study also found that sellers that used the MLS sold their homes for more money than those who did not. In 2022, being listed on the MLS brought an average of $53,890 more than what the same sellers would have received if they did not list on the MLS.*
Why? Homes on the MLS reach the greatest number of buyers. The buyers come from farther away than a for sale in front of a Locust Grove home can reach. This can create competition for a home when several buyers are all interested in the same property and can bring more competitive offers to the sellers. Since homes for sale by owners don’t reach as many buyers, the competition for the home is less.
What does this mean for a Locust Grove home?
If you are considering selling your Locust Grove home, using a Realtor® who has access to the MLS is financially beneficial for sellers. Being able to accurately determine the market value of your home and having a network to share your home with a large group of potential buyers brings competitive offers to sellers. Sometimes people are hesitant to work with a Realtor® because of prior experiences. Remember that it is okay to interview several agents and select the one that is best for you! Doing so will help you profit from your home sale.
*Information from the 2023 On-MLS Study Lisa Sturtevant, August 2023
