top of page
Search

The "Save the Commission" Myth Has a $406 Million Price Tag

In today’s information-rich world, it’s easy for homeowners to believe that listing a home For Sale By Owner (FSBO) is a savvy financial move. The logic seems sound on the surface: "If I cut out the agent, I keep the commission."

But a recent analysis from Doorify MLS (formerly Triangle MLS) reveals a startling reality that every real estate professional in North Carolina needs to know—and share.

The headline? FSBO sellers in our market left an estimated $406 million on the table.


That isn’t just loose change. That is nearly half a billion dollars of lost equity—wealth that should have gone into the pockets of North Carolina families—simply because sellers underestimated the power of the MLS and professional representation.


Why "Going It Alone" Costs More Than It Saves

The Doorify MLS report underscores a critical truth: Exposure drives price.

When a seller lists FSBO, they are effectively marketing to a fraction of the buyer pool. They might put a sign in the yard or post on a few free websites, but they are missing the engine that drives the modern real estate market: the Multiple Listing Service (MLS).

Here is why the MLS difference is worth millions:

  1. The "Network Effect": The MLS isn’t just a database; it’s a distribution engine. It syndicates listings to thousands of websites (Zillow, Realtor.com, brokerage sites) and puts the home in front of every active buyer’s agent in the region.

  2. Competition Creates Value: When only a few people see a home, the seller has zero leverage. When thousands see it, competition heats up. Multiple offers drive prices up, often far exceeding the "savings" of a avoided commission fee.

  3. Accuracy & Speed: Homes on the MLS have verified data, making them easier for buyer agents to show and sell. Frictionless transactions move faster and close for higher prices.


The Math Doesn’t Lie

Agents often struggle to articulate their value proposition in the face of discount brokerages and DIY apps. This report gives you the ultimate counter-argument.

  • The Cost of Commission: ~5-6% (split between firms)

  • The Cost of FSBO: potentially 13-18% lower sales price (based on comparative studies from Bright MLS and others).

If a seller saves 6% in fees but sells for 15% less, they haven't "saved" anything. They have effectively paid a 9% "FSBO Tax" out of their own equity.


For NC General Contractors: Why This Matters to You

If you are a General Contractor building spec homes or flipping properties, this data is vital for your bottom line.

You are experts in construction, not necessarily in maximizing market exposure. Attempting to sell your own flips or spec builds off-market to save on fees can inadvertently lower your comparables and shrink your margins. The $406 million figure proves that even professional investors leave money behind when they bypass the open market. Partnering with a skilled listing agent ensures your product gets the widest audience and the highest possible return on investment.


How to Use This Data with Clients

Don't just tell your clients you are "worth it." Show them the numbers.

Script for Agents:

"I understand you want to maximize your net proceeds. A lot of sellers think avoiding a commission is the best way to do that. But a recent local report showed that FSBO sellers in our area lost out on over $400 million in equity because they couldn't generate the same competition that the MLS does. My goal isn't just to sell your home; it's to get you the price the market is actually willing to pay—which is usually significantly higher than what you can get on your own."

The Bottom Line

The MLS is more than a list of homes; it is a marketplace that guarantees transparency, competition, and fair market value. As professionals, our job is to protect our clients' equity. The data is clear: the most expensive thing a seller can do is try to sell it themselves.


Share this article to help your clients and colleagues in an upcoming CE Class to understand the real value of the MLS!


References

Doorify MLS. "Are MLSs Worth It? TL;DR: FSBOs Left $406 Million on the Table, So Yes." Doorify MLS News.

 
 
 
bottom of page