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"That scale, along with the cooperation of the site's owners and of the local Realtor group, made the economists' study possible. "We don't have national data," Mr. Nevo, one of the authors, said. "FSBOMadison is unique"
Pasted from the Study you quotedPatience Is KeyNevo chalks up this premium to the self-selecting nature of homeowners who were willing to sell their homes themselves. "Those who sell their own homes are probably better at bargaining," says Nevo. "They would get a higher price even if they used a Realtor. In fact, that's part of what we find."
In a variety of ways, Nevo and his colleagues controlled for the self-selecting nature of those who were bold enough to sell their homes themselves. One of the ways they controlled for the difference between seller types exploited the fact that some home sellers show up in the data twice—once when selling their home via a Realtor, and another time when selling a home themselves. Sellers who used FSBOMadison.com to sell a second home after they sold their first home via a Realtor were notably different from homeowners who only sold their homes through a Realtor. Specifically, they tended to get a higher than expected price when they sold their first home via a Realtor. This suggests that they were special in some way—more confident or more patient, perhaps—and that these traits would allow them to get a higher price for their home no matter what means they were using to sell it. It further suggests that sellers who used FSBOMadison.com were more likely to be able to command a higher price for their homes. Once the fact that FSBOMadison.com users were a special breed is taken into account, the premium accorded by FSBOMadison.com is not statistically significant.
"One idea is that people who use this for-sale-by-owner platform are the ones who are more patient," says Nevo.
That scale, along with the cooperation of the site's owners and of the local Realtor group, made the economists' study possible. "We don't have national data," Mr. Nevo, one of the authors, said. "FSBOMadison is unique
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