Most people in Georgia hope to turn a profit when selling a house. However, different types of sellers tend to secure varying profit rates. A study from the University of Georgia found that real estate investors and real estate agents tend to do fairly well when it comes to real estate profits. 

Past research 

The 2005 bestselling book “Freakonomics” asserted that real estate agents tend to make more when selling their own homes than what their clients make. Later research from one of the book’s authors calculated a percentage for this claim, which is that real estate agents make approximately 6% more. Some experts believe this discrepancy could come down to a conflict of interests. 

However, researchers who examined data from 2003 to 2013 determined that full time real estate investors actually make a larger profit margin — about 8% more than the average homeowner. That research also concluded that real estate agents only make about 3.4% more than homeowners. Conflict of interest is not the only reason for the difference in profit margins between investors, real estate agents and homeowners, and other factors include: 

  • Infrequency of homeowners on the real estate market 
  • Bargaining power 
  • Knowledge of the real estate market 

There is a lot that goes into securing the best possible price when selling a house. Whether someone is an investor with years of experience under his or her belt or a first time home seller, selling at a great price can be difficult. Working closely with a knowledgeable attorney who is familiar with the challenges of Georgia real estate law can prove helpful for anyone who is getting ready to sell a home.