- The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent. One-third of those sellers knew the buyer prior to home purchase.
- The primary reason that sellers choose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee or commission (43 percent).
- One-third of FSBO sellers took no action to market their home, and 60 percent did not offer any incentives to attract buyers.
- The typical FSBO home sold for $174,900 compared to $210,000 among agent-assisted home sales.
- For more information on the annual Profile of Home Buyers and Sellers, click here. The 2013 report will be released next Monday, November 4.
- Sellers are turning to agents to help sell their homes at higher rates than in the past – 88 percent of home sales were agent-assisted compared to 82 percent in 2004.
- Only nine percent of recent sellers reported selling their homes as a FSBO – sales have dropped rapidly from 2003 when they were at 14 percent.
- Understanding and performing the paperwork was the most difficult task reported by FSBO sellers, followed by getting the price right and preparing and fixing up the home for sale.
- For a limited time, you can download a free copy of the 2012 Profile through the MVP Program. Click here for more information.
- To view highlights from the Profile, click here.
- The share of home sellers who sold their home without the assistance of a real estate agent was 10 percent. Forty percent of those sellers knew the buyer prior to home purchase.
- The primary reason that sellers choose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee or commission (37 percent).
- More than one-third of FSBO sellers took no action to market their home, and 59 percent did not offer any incentives to attract buyers.
- The typical FSBO home sold for $150,000 compared to $215,000 among agent-assisted home sales.
- For more information from the annual Profile of Home Buyers and Sellers, click here >
The method most used to sell a home has changed in recent years. A higher share of sellers are relying on the expertise of real estate agents and brokers to sell their home, rather than trying other methods.
- From 1991 to 2011 the share of home sellers who used a real estate agent or broker to sell their home increased from 77 percent to 87 percent.
- Over the same time period, the share of sellers who sold their home as a FSBO (For-Sale-By-Owner) decreased from 19 percent to 10 percent.
- Sellers use real estate professionals to help them sell their home in a reasonable timeframe, to market their home to potential buyers, and to price the home competitively.
- For more information on the Profile of Home Buyers and Sellers, click here.
Recently a REALTOR® emailed NAR Research, asking about the advertising site ForSaleByOwner.com. “ForSaleByOwner” states that with a FSBO, “Sellers save big by not paying a hefty 6% commission. They go on to state: “According to the National Association of Realtors (NAR), for sale by owner sellers not only sell faster, but they usually get closer to their asking price.”
We thanked the REALTOR® for alerting us to the website’s statements. This advertisement is an example of the old phrase, “We gave them the facts, just not all the facts.” Here are more facts to take into consideration:
- In 2010 for an arms-length sale, the median sale price through a Realtor® was $200,000 for new and existing homes combined, according to NAR’s 2010 Profile of Home Buyers and Sellers. The comparable FSBO price was $155,700. Avoiding the commission results in a sales price that is $44,300 lower than the $200,000 price that a Realtor® can help to obtain — a difference of 28 percent from the FSBO price.
- “ForSaleByOwner” is correct that FSBO’s sell faster—but they neglect to mention that the faster sale is caused by significant under-pricing of the property, something a Realtor® knows to avoid.
- And of course FSBO’s do actually sell closer to asking price—because the asking price is set significantly below market.
If any of your clients mention the website to you, please let them know that the information on the website is extremely misleading – and wrong! Their final comment may be their worst: “Despite what an agent might tell you, selling your home isn’t difficult with ForSaleByOwner.com there to help you along the way.”
In fact, many FSBO properties are eventually listed with REALTORS® in order to get them sold. Unfortunately, by that time, the properties are “shopworn” and stale. Typically a REALTOR® can get a better price than a FSBO, but the price is generally less than what could have been obtained if the seller had initially listed with a REALTOR®.
The Profile of Home Buyers and Sellers is a survey of new and existing home sales transactions. Issued annually, the Profile provides answers to virtually all of the questions that a worried buyer could ask on such topics as the home search process, financing, buyer and seller characteristics, and the overall market.