Nov. 10, 2008 - Survey shows downturn of FSBO successes

2008 NAR Profile of Home Sellers

1. Only 1% of sellers chose an agent based on his or her commission. 13% of sellers did not know commissions and fees are negotiable.
2. 46% of sellers said the real estate agent initiated a discussion of compensation.
3. Home sellers’ median age was 47 and the average income was $91,000.
4. 75% of home sellers were married couples. Home sellers averaged 6 years in their home.
5. Primarily, sellers want agents to price their home competitively, market the property, find a buyer and sell within a specific timeframe.
6. Sellers moved a median distance of 19 miles.
7. 42% of sellers offered incentives to attract buyers.
8. Nationally, homes sold for an average of 96% of the listing price. 86% of sellers were satisfied with the selling process.
9. 52% of sellers were trading up to a larger home, while 22 percent were downsizing.
10. 81% of sellers used a full-service brokerage.

Special Findings For Sale By Owner (FSBO)

1. The level of for-sale-by-owner transactions was 13%, up slightly from a record-low market share of 12 percent in both 2007 and 2006.
2. 45% of FSBOs were “closely held” between parties who knew each other in advance and not placed on the open market.
3. Factoring out properties that were not placed on the open market, the actual number of homes sold without professional assistance is 7%– the rest are unrepresented sellers in private transactions (matching the results in the 2007 study and marks a downtrend from 10 percent sold on the open market in 2004.
4. The median home price for sellers who used an agent was $211,000 vs. $153,000 for a home sold directly by an owner, but according to NAR, “there were important differences between the two. Unassisted sellers were more likely to be in a rural area or small town where sellers are more likely to know potential buyers. In addition, the home was more likely to be a mobile or manufactured home, and the owner’s income was lower than that of sellers using agents.”
5. The most difficult tasks reported by unrepresented sellers are selling within the planned length of time, getting the right price, preparing the home for sale, and understanding and performing paperwork.

Source: National Association of Realtors

Nov. 15, 2008 - RE: Survey shows downturn of FSBO successes

TruliaVoices has been having a lively discussion of the pros & cons of FSBO markrting at: http://tinyurl.com/6fmf4d

Let me know what YOU think.

Nov. 16, 2008 - RE: Survey shows downturn of FSBO successes

Now the NY Times chimes in on the topic of FSBO sales  http://tinyurl.com/5lawat