Selling Through a Realtor or Directly? A Comparative Study of Home-Selling Practices in the U.S. and Worldwide

This article examines the proportion of property owners who choose real estate agents (realtors) versus those who opt for direct sales. Drawing on data from the United States as well as international markets, the study highlights prevailing trends, cultural differences, and the role of legal frameworks and online platforms in shaping consumer preferences.

 

1. Introduction

The decision to sell real estate through a licensed agent (realtor) or via direct sale has long been influenced by market norms, regulations, and practical considerations. In the United States, the National Association of Realtors (NAR) consistently tracks the percentage of sellers who employ a realtor. Internationally, practices vary widely based on a combination of cultural attitudes and the accessibility of professional services.

This article explores the core question: What proportion of sellers use real estate agents compared to those who list properties themselves? By reviewing national and global statistics, we aim to understand the primary factors guiding these decisions.

 

2. United States: Realtor vs. Direct Sales

2.1 National Averages

According to the 2022 National Association of Realtors (NAR) Profile of Home Buyers and Sellers, an estimated 86% to 90% of U.S. home sellers work with a real estate agent or broker when listing their properties. This figure underlines a strong preference for professional guidance and market expertise, which can include help with pricing, marketing, negotiations, and legal documentation. On the other hand, roughly 8% to 10% of sellers choose a For Sale By Owner (FSBO) approach, a method that typically involves marketing the home independently to avoid commission fees.

Despite the apparent cost benefits, FSBO transactions have been on a downward trend in recent years. In the early to mid-2000s, 12–13% of U.S. home sellers went the FSBO route, but that proportion has gradually declined to 8–10%. One reason for this shift is the complexity of the modern real estate landscape: from ever-changing regulations to digital marketing and online listing services. Sellers often find value in tapping into an agent’s professional network and leveraging their experience with local market conditions and contract negotiations.

Furthermore, research by the NAR suggests that many FSBO sellers already have a specific buyer in mind—such as a friend, family member, or neighbor—reducing the need for broader marketing. When FSBO sellers do not already know their buyers, they may face challenges in accurately pricing their homes, marketing effectively, and navigating the legal aspects of disclosure and contract requirements. Consequently, some FSBO participants ultimately seek partial assistance from real estate attorneys, title companies, or limited-service brokers during the transaction process.

Overall, these national statistics underscore that while FSBO remains a viable option for a small segment of homeowners—especially those with prior knowledge or connections to potential buyers—the majority continue to rely on real estate agents for a smooth, efficient, and legally compliant sales experience.

2.2 Reasons for Realtor Preference

  1. Professional Expertise: Realtors offer market knowledge, pricing strategies, and negotiation skills.
  2. Legal Safeguards: U.S. real estate transactions often involve extensive paperwork and legal disclosures. Realtors can help sellers navigate these complexities.
  3. Marketing Reach: Agents list properties on the Multiple Listing Service (MLS), social media, and real estate portals, maximizing exposure to potential buyers.

2.3 FSBO Motivations

Sellers who choose direct sales often cite the desire to save on commissions. They may also have personal connections to prospective buyers or feel they possess sufficient market knowledge to handle the sale independently.

 

3. International Overview

3.1 Europe

In Europe, real estate practices vary by country due to diverse legal frameworks, cultural norms, and market dynamics. However, most countries still rely heavily on professional intermediaries—estate agents, notaries, or real estate agencies—to streamline the sale process and ensure legal compliance.

Overall, Europe exhibits a strong reliance on professional intermediaries. This is partly due to comprehensive legal frameworks—in many European countries, official notaries or solicitors must process key aspects of the transaction—and long-established market practices that favor professional listings. While FSBO certainly exists in various forms and may appeal to cost-conscious sellers, the complexities of conveyancing, regional regulations, and cultural norms generally uphold the popularity of using estate agents in most European markets.

3.2 Australia

In Australia, estimates from state real estate boards show that 80% or more of home sellers engage professional agents. A smaller portion, around 10–15%, list properties themselves or use low-cost online platforms. This distribution reflects both the importance of local market expertise and consumer awareness of alternative selling methods.

3.3 Canada

The Canadian market mirrors the United States in many ways. Reports by the Canadian Real Estate Association (CREA) suggest that over 85% of sellers rely on licensed real estate professionals. Direct sales remain an option but are less common, typically hovering around 10–12% of total transactions.

3.4 Asia

 

4. Key Factors Influencing Seller Decisions

  1. Regulatory Complexity: Heavily regulated markets (e.g., the U.S., parts of Europe, Japan) tend to have higher realtor usage due to legal disclosures and formalized processes.
  2. Cultural Norms: In societies where professional service is the norm, sellers may find it more socially acceptable to hire an agent.
  3. Availability of Online Tools: The growth of digital platforms and FSBO websites has modestly increased direct sales options, particularly in North America and parts of Asia.
  4. Economic Considerations: Potential cost savings motivate some sellers to avoid realtor commissions, but lack of expertise can lead to lower sale prices or legal complications.

 

5. Conclusion

The percentage of sellers who choose to work with real estate professionals versus direct transactions varies worldwide but generally skews toward realtor-assisted sales. In the United States, roughly 86–90% of properties are sold with realtor involvement, and similar trends are seen in Canada, the UK, and Australia. Regions like Germany or Singapore have somewhat lower (though still majority) participation of professional intermediaries, with around 70–80% of deals facilitated by agents.

Factors influencing these choices include regulatory complexities, cultural attitudes, and the proliferation of online real estate platforms. While direct sales offer potential cost savings, the expertise, marketing reach, and legal safeguards provided by realtors remain highly valued in many markets globally.

 

References

  1. National Association of Realtors (NAR). (2022). Profile of Home Buyers and Sellers.
    https://www.nar.realtor/research-and-statistics

  2. Canadian Real Estate Association (CREA). (2021). Statistical Report: FSBO vs. Realtor Transactions.
    https://www.crea.ca/

  3. The UK Land Registry & Estate Agent Statistics. (2021). Annual Housing Market Report.
    https://www.gov.uk/government/organisations/land-registry

  4. Real Estate Institute of Australia (REIA). (2020). Australian Housing Trends.
    https://reia.com.au/

  5. German Real Estate Association (IVD). (2021). Market Overview: Private vs. Agent-Led Sales.
    https://ivd.net/

  6. Hong Kong Housing Authority. (2022). Property Transactions and Regulatory Practices.
    https://www.housingauthority.gov.hk/

  7. Japan Real Estate Institute (JREI). (2021). Annual Property Market Survey.
    https://www.jrei.jp/

Note: Percentages may vary by region and are subject to change based on evolving market conditions, legislation, and data collection methods.


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