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The Facts About FSBOs
A close look at "For-Sale-By-Owner" (FSBO) data from NAR's 2005 Profile of Home Buyers and Sellers
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Each year a small army of home sellers throw caution to the wind and “go it alone” – without the assistance of a licensed real estate professional.
This ever-decreasing band of risk-takers, ventures into the land of pricing, marketing, screening, scheduling, showing and paperwork, with the goal of saving some money. It's often an experience they find less than rewarding.
The numbers (if not the sellers) tell the story.
Last year, 13 percent of all sellers chose the FSBO (“For Sale By Owner”) route, according to NAR’s 2005 Profile of Home Buyers and Sellers. This is down from about 18 percent eight years ago. But more telling than the decline in FSBOs is the fact that more than a third of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 8 percent of all home sales are arm's-length FSBO transactions.
Only half of last year’s FSBOs say they plan to go it alone again, so expect to see these numbers go down even further in the years ahead.
Several factors appear to account for the decline in for-sale-by-owners: the increasing complexity of the transaction process, with more disclosures and legal requirement than ever before; the amount of time required to market and show property; and security concerns about the motivation of strangers dealing directly with owners and walking through their homes.
And, getting back to the money part – after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.
Sellers make more money when they use a real estate professional.
Homes sold with the help of a real estate professional last year sold on average for 16 percent more than FSBO sales. The median FSBO selling price in 2005 was $198,000, compared with $230,000 for agent-assisted transactions.
Copyright NATIONAL ASSOCIATION OF REALTORS®
Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020
1-800-874-6500
License Agreement | Privacy Policy | REALTOR.com | Contact NAR
Copyright NATIONAL ASSOCIATION OF REALTORS®
Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020
1-800-874-6500
License Agreement | Privacy Policy | REALTOR.com | Contact NAR
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