[quote=bearishgurl]
Fascinating, njosd, I’ll look up the book.
I stand by my assertion that buying a FSBO does NOT save the buyer any money. Therefore, I would surmise that eliminating commission would shave little to nothing off the the purchase price for the buyer.[/quote]
Possibly, the total purchase sum would always be what the market will bear, or as we have seen recently, what a fraudulent mortgage lender and borrower will bear.
But that is not the point. When the FSBO buyer later becomes a FSBO seller, s/he would also have no sales expense of 6% and get ALL the money back.
There is no way that siphoning off 6% of each transaction will get either buyer or seller as good a deal as they otherwise would have.
Come to think of it, how many distress sales have we all seen that are priced at what-I-owe-plus-6%. Agency costs surely make home prices more sticky in underwater situations.
