Home-Selling Trends: Successes and Struggles Heading Into 2024

Why Americans Are Still Selling | Profit Potential | Speed of Sale | Home-Seller Regrets | Stress of Selling | Pricing Problems | FSBO Fails | Realtor Grievances | Negotiations | Coping With Commissions | Lack of Trust | Deciding How to Sell

As 2024 approaches, recent home sellers are realizing the market doesn't value their house quite like it used to. 

With mortgage rates at a 20-year high, more home buyers are holding out for a better deal. In response, home sellers have reluctantly lowered their asking prices to meet buyers' budgets, so much so that 2023 has seen the median home price drop by nearly $49,000 — the largest decline since the Great Recession of 2008. 

In fact, a new Clever survey of 1,000 people who sold a home in 2022 and 2023 found that 45% of sellers rejected an offer that turned out to be their highest, illustrating how quickly home prices have fallen in some parts of the U.S.

But some sellers can still salvage their profits, especially if they rely on a professional to list their home. Clever's survey found that those who sold their home with an agent earned $46,603 more in average profit than those who sold without an agent in 2022 and 2023. 

About 79% of recent home sellers sold through a realtor, while 21% opted for a non-traditional option, such as for sale by owner (FSBO) or selling to a company that buys homes for cash, according to Clever's findings.

In addition to higher average profits, the survey found that 77% of those who used an agent were satisfied with their home-selling experience, compared to 58% of those who did not use an agent. Similarly, a majority of non-traditional sellers (53%) say they wish they used an agent. 

Read on to learn more about how home sellers feel about their recent sales.

Why Americans Are Selling Their Homes in 2023 

The outlook for home sellers has changed drastically since the bidding wars of 2021 and 2022. 

Selling a home usually means buying another afterward, and with new mortgage rates climbing, 51% of recent sellers say they were hesitant to sell because they didn't want to give up a low interest rate. 

Still, some decided to pull the trigger. The most common reasons for wanting to sell include: 

• They wanted a bigger home (40%)
• It was a good time to sell (37%)
• They wanted to move closer to friends/family (30%)
• They needed to move closer to their job (23%)
• They wanted a smaller home (21%)
• They were relocating (20%)
• They thought they could make a good profit on their home (18%)
• They didn't like their neighborhood (18%)
• They needed the money (17%)
• Their living situation changed (e.g., divorce, moved in with partner, retirement, etc.) (17%)
• They wanted a home with less maintenance (15%)
• They could no longer afford their home (e.g., property taxes, mortgage, etc.) (11%)

Nearly 4 in 5 recent home sellers (79%) say they hired an agent to sell their home. The other 21% used a non-traditional selling method, such as selling directly to a cash buyer, investor, or iBuyer. The most common of these methods are:

• Through a cash home buyer/investor (20%)
• Through an iBuyer (e.g., Opendoor, Offerpad, etc.) (13%)
• FSBO (for sale by owner)/no MLS listing (13%)
• Rent-to-own agreement (11%)
• Auction (11%)
• Buy-before-you-sell/bridge loan program (10%)

Clever's data found that those who hired a realtor were more likely to feel good about their sale. About 77% of those who used a traditional agent were satisfied with their experience, compared to 58% of those who didn't use an agent.

In other words, those who didn't use an agent were nearly 2x as likely to say they were not satisfied with the experience (42% vs. 23%). Of non-traditional sellers, 53% say they wish they would have used an agent, and 54% say they'll hire an agent the next time they sell. 

Home Sellers Who Used a Realtor Made $47,000 More in Profit

Americans who opt against using a real estate agent may cost themselves tens of thousands in profit. Homes sold with a realtor earned their owners an average profit of $189,127 — $46,603 more than homes sold without an agent ($142,524).

But not everyone comes out on top. About 1 in 8 homeowners (12%) say they lost money on their home sale. Those who sold without a realtor were 3x more likely to say they lost money on their home sale than those who sold with a realtor (25% vs. 8%).

Nearly half of non-traditional sellers (48%) say their home likely would have sold for more if they used an agent. Across all home sellers surveyed, the average sale price was $570,320, with an average profit of $179,340.

The median home price — which tends to be more representative than the average — has already fallen 10% since it peaked in 2022, according to the Federal Reserve. That may explain why 45% of sellers rejected an offer, only to later settle for a lower price. 

In total, 59% of home sellers thought there would be more competition for their home among buyers. 

Profit Is Home Sellers' Top Priority 

Every home seller is different and starts the process with their own priorities. But some goals tend to be more common than others. 

Home sellers consider the following priorities very important:

• Earning the most money from their sale (58%)
• Finding a good real estate attorney (55%)
• Closing on time (52%)
• Selling their home as quickly as possible (52%)
• Timing their home sale with a new home purchase (50%)
• Selling to an individual rather than a company (49%)
• Avoiding the hassles of a traditional home sale (showings, negotiations, etc.) (49%)
• Avoiding contingencies (e.g., no inspection/appraisal, etc.) (48%)
• Avoiding high realtor commission rates (48%)
• Avoiding repairs/selling as-is (47%)

Does Selling Without an Agent Result in a Quicker Sale?

The most common reasons people choose to sell without an agent all have to do with speed: wanting a quicker sale (31%), needing the money soon (31%), and wanting a convenient sale (29%). 

Other reasons for selling without a realtor include: 

• They wanted to save on realtor fees/commissions (28%)
• They prefer to handle showings and negotiations (25%)
• They've used real estate agents in the past but didn't need one this time (25%)
• They don't trust real estate agents (24%)
• They've never used a real estate agent (22%)
• Their home was in bad condition (21%)
• They had a bad experience with their last real estate agent (19%)

Clever's findings suggest that Americans who want to sell their home within a week have a better chance without a realtor. About 20% of those homes sold in a week, compared to 16% of homes sold with a realtor. 

That trend reverses after a few weeks. About 53% of traditional sellers accepted an offer within one month of listing, compared to 39% of non-traditional sellers. Those who sold without a realtor were nearly 2x as likely to say they didn't accept an offer for at least three months. 

In hindsight, just under half of non-traditional sellers (46%) think their home would have sold faster had they used an agent. 

Nearly 9 in 10 Recent Home Sellers Have Regrets

With high expectations for their home sale, many recent sellers set themselves up for disappointment. Just under nine in 10 recent home sellers (86%) have at least one regret about their home sale. The most popular regrets vary depending on the type of home sale conducted. 

Those who sold with a realtor were 50% more likely to say they had no regrets compared to those who sold without a realtor. 

Among those who didn't use a realtor, the most popular regrets are: 

• They wish they received more offers (25%)
• The house took longer to sell than they expected (23%)
• They wish they could have negotiated more (23%)
• They paid more in repair credits and closing costs than anticipated (23%)
• They wish they would have waited to list their home until the market was better (23%)
• They had one or more offers fall through (21%)
• They struggled to time the home sale with moving into their new home (21%)
• They should have made more repairs before listing their home (20%)
• They waited too long to list their home (20%)
• They feel like the buyer got the better end of the deal (20%)

Among those who used a realtor, the most common regrets are: 

• They should have made more repairs before listing their home (27%)
• They feel like the buyer got the better end of the deal (25%)
• They wish their agent had negotiated more on their behalf (25%)
• They waited too long to list their home (24%)
• They made more concessions than they felt comfortable with (22%)
• They struggled to time the home sale with moving into their new home (21%)
• They paid more in repair credits and closing costs than they wanted (20%)
• They should have staged their home (19%)
• They should have sold for sale by owner (FSBO) (17%)
• They should have chosen a different agent (16%)

Home-Selling Stress: 47% of Sellers Cried During the Process

Selling your home isn't just a financial transaction. It's a complicated emotional journey, as well. About 47% of recent home sellers say they cried at some point in the home-selling process. That number is slightly higher among those who sold without a realtor (50%), reflecting the additional stress that comes with spearheading your own home sale. 

Additionally, 42% of sellers say they fought with loved ones during the selling process. A majority of recent home sellers (56%) say the experience was stressful, including 60% of those who didn't use an agent.

About 52% of non-traditional sellers say they felt overwhelmed with the sale process. 

1 in 3 Home Sellers Wish Their Home Was Priced Differently

Deciding how to price a home is one of the most important decisions a seller will make. If the price is set too high, the home may languish on the market for months, costing the homeowner more and increasing the likelihood of price cuts. 

Just over half of sellers (53%) say they had to reduce the asking price for their home. About 33% of home sellers say they wish they priced their home differently. Of those who sold without an agent, 50% say they wish they priced differently, compared to 28% of those who used a realtor.

Those who sold with an agent were much more likely to have sought a professional home evaluation, such as an appraisal, to help determine an appropriate asking price, leading to fewer regrets. About 75% of those who used an agent received a professional evaluation to help with pricing, compared to 51% of those who sold without an agent. 

In fact, 45% of non-traditional sellers didn't even use a home value estimation website to get a ballpark idea of what their house was worth. 

The Struggles of Selling Without an Agent

In addition to missing out on a higher sale price, those who sold without an agent often ran into pain points in the selling process. More than one-third (36%) say they made legal mistakes because they didn't have an agent. 

Non-traditional sellers experienced the following issues during their sale:

• They felt overwhelmed with the sale process (52%) 
• Buyers distrusted them because they didn't have an agent (43%) 
• They did not understand their contract (40%) 
• They made legal mistakes because they didn't use an agent (36%)

Overall, non-traditional sellers are 38% more likely than those who used an agent to say selling was harder than they expected. Some non-traditional sellers likely went into the process overestimating how easy it would be. Much of that sentiment might be based on preconceived, negative opinions about realtors: 

Among non-traditional sellers: 

• 57% say agents are overpaid for what they do 
• 49% say they're as knowledgeable as an agent about home selling 
• 45% say agents are incompetent

In fact, 43% of non-traditional sellers say they would accept an offer for $20,000 under the asking price rather than hire an agent to sell. Some non-traditional sellers are so averse to realtors that 10% say they would never use an agent, even if their home was on the market for more than six months. 

Preparing for Showings, Evaluating Offers Considered the Biggest Challenges

When deciding whether to use an agent, it's worth considering which challenges homeowners face most frequently during the selling process. About 93% of recent home sellers say they faced challenges with their sale. 

Some of the most common challenges are:

• Getting their house ready to show (cleaning, painting, staging, etc.) (32%)
• Evaluating offers (comparing terms, contingencies, buyer financing, etc.)  (31%)
• Pricing their home (30%)
• Deciding whether to use a realtor or sell their house a different way (30%)
• Finding a good real estate agent (28%)
• Generating interest/getting buyers to make offers (27%)
• Paperwork that's involved when selling (e.g., seller disclosures, etc.) (27%)
• Negotiating with buyers (27%)

1 in 3 Sellers Say Their Realtor Failed Them: Here Are the Most Common Complaints

Most people who used a realtor walked away from the home-selling process fairly happy. About 77% say they were satisfied with their agent, and 72% say they would use their agent again next time. 

But some sellers had less-than-stellar experiences with their realtors. About 2 in 5 people who sold with an agent (40%) say they felt pressured to make decisions they weren't comfortable with, and 35% outright say their agent failed them. 

The most common complaints sellers had about their realtors include:

• Their agent was only looking to make a sale and didn't care about their best interests (42%)
• Their agent annoyed them (41%)
• Their agent pressured them into decisions they weren't comfortable with (40%)
• Their agent did something unethical (39%)
• Their agent ignored them when they tried to contact them (38%)
• Their agent made mistakes with the listing (38%)
• Their agent botched negotiations (38%)
• Their agent crossed personal boundaries (37%)
• Their agent failed them (35%)
• They were not satisfied with their agent's level of communication (28%)

Still, 73% of those who used a realtor say they recommend others use a realtor as well. 

Botched Negotiations: 2 in 5 Say Their Agent Blew It

Negotiations are one of the most stressful parts of the home-selling process, and it's not unusual for these talks to feel confrontational. Most home sellers (56%) say they're intimidated by the idea of negotiating directly with a buyer or their agent. 

Those who hire a realtor have the benefit of someone else negotiating for them, but even then, it doesn't always work out. About 38% of recent home sellers say their agent botched negotiations. 

Although some sellers have complaints about their agent's haggling skills, going it alone doesn't always work out better. About 49% of those who sold without an agent say they wish they would've negotiated with the buyer more. 

At the same time, about 50% of non-traditional sellers say their negotiations were tense.

7 in 10 Sellers Say a Good Realtor Is Worth Their Commission

No one likes to pay fees, but in most cases, home sellers agree that a good agent's skills are worth the price. About 72% say a good realtor is worth every penny of their commission. 

Traditionally, a home seller pays around 6% in commission — 3% to both their agent and the buyer's agent. The average commission rate in the U.S. is about 5.4% because it factors in discount realtors. 

Most sellers (71%) who used an agent spent 5% or more on commission, so they could be missing out on savings by not using a discounted agent. 

The chart below shows how much sellers paid in commission:

• 2% or more (93%)
• 3% or more (86%)
• 4% or more (79%)
• 5% or more (71%)

Despite the annoyance of fees, 57% of home sellers, including 54% of non-traditional home sellers, correctly identified that iBuyer fees are typically higher than the average commission. Those fees usually come out to about 7.5% of the home's sale price. 

It's worth noting that although home sellers expect fees, they do so reluctantly. Sellers typically pay for the buyer's agent's commission, but about 55% of sellers say they shouldn't have to pay it.

Those sellers might get their way in the future. A Missouri jury recently ruled against the National Association of Realtors (NAR) in an anti-trust suit, holding NAR and two brokerage firms liable for $1.8 billion in damages for allegedly conspiring to keep real estate commissions artificially high.

If the ruling survives the ongoing appeals process, it could lead to a significant shift in the real estate industry, potentially eliminating NAR's requirement that sellers offer to pay buyer's agent commissions when posting properties on a multiple listing service.

Trust Issues: 2 in 3 Sellers Say Real Estate Investors Inflate Home Prices 

In any large transaction, trust is imperative. But home sellers are often skeptical about the people they might do business with. 

Real estate investors are among the most disliked by home sellers. Nearly two-thirds of home sellers (64%) say real estate investors drive up housing prices, and 56% say they lead to a shortage of affordable housing. 

Home sellers are also suspicious of companies that buy homes for cash, with 50% saying such companies are scams. 

Home sellers consider the following untrustworthy:

• Real estate investors (32%)
• "We buy houses for cash" companies (31%)
• Mortgage lenders (30%)
• Discount real estate agents (27%)
• Traditional real estate agents (26%)
• Rent-to-own companies (24%)
• Flat fee MLS (23%)
• iBuyers (22%)

Despite their willingness to condemn certain business models, sellers don't always practice what they preach. Of those who sold their home with an agent, 86% first considered or attempted selling to a cash buyer or investor. 

How Do Home Sellers Decide Whether to Hire a Realtor? 

Among those who hired a realtor, most at least considered using a non-traditional method at some point. Sellers considered or attempted the following non-traditional methods before hiring an agent: 

• Selling to a cash buyer/investor (86%)
• FSBO (for sale by owner) (81%)
• Renting out their home (80%)
• Selling to an iBuyer (79%)
• Flat fee MLS listing (78%)
• Rent-to-own agreement (77%)
• Buy-before-you-sell/bridge loan program (75%)

Some home sellers seem to change their opinions on using a realtor depending on the circumstances. For example, sellers are more likely to use a realtor if they're listing an expensive home or if their agent offers a discount on commission. Conversely, 42% of sellers say they’re less likely to work with an agent if the agent is unwilling to negotiate commission.

When looking solely at non-traditional sellers, here are the top 10 factors that would make them more likely to use a realtor: 

• Their house is valued at $250,000 or less (44%)
• Their home has not appreciated in value since they bought it (42%)
• Home buyer sentiment is strong in the housing market (41%)
• Home buyer sentiment is weak in the housing market (41%)
• The realtor is willing to take less commission (39%)
• Their house is at risk of foreclosure (39%)
• Their home is in a very desirable neighborhood (38%)
• They plan to sell their house as-is (38%)
• Their house is valued at $1 million or more (38%)
• Their home is in a very undesirable neighborhood (38%)
• This is their first home sale (38%)

Methodology

The proprietary data featured in this study comes from an online survey commissioned by Clever Real Estate. One thousand Americans who sold their home in 2022 or 2023 were surveyed Oct. 19-23, 2023. Each respondent answered up to 26 questions related to their home-selling experience.

About Clever

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. Twelve million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions. To date, Clever has helped consumers save more than $160 million on real estate fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.

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