1968 vs. 2008: Are Homesellers Better Off?
- 8.08.2008
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In 1968, the median cost of buying a home was just over $15,000. A gallon of regular gasoline cost $0.34. A first class stamp cost a nickel, and people shopped for everything the old-fashioned way: They visited the nearest store, loaded up the shopping cart, and took their goods home.
What a difference forty years makes. In June of 2008, the median existing single-family home price was $215,100. A postage stamp costs $0.42. And gas is over $4.00 a gallon.
But consumers have also made great strides. Today, virtually anything can be purchased online and delivered to the buyer’s doorstep, with only the click of a mouse and a credit card. “Middlemen” have largely been eliminated in booking travel, investing in stocks, and countless other consumer transactions. And consumers have benefited by saving money.
This is not the case for consumers who sell their homes with real estate agents.
“According to independent research, more than 20% of consumers are now trying to sell their homes by owner, and that’s a good thing,” said Greg Healy, Vice President of Operations of ForSaleByOwner.com.
“But that also means most home sellers are still doing it the old way - and still, effectively, giving up six percent of the equity in their homes in commissions. In this market, that can be devastating.”
