Over the past 10 to 15 years, the residential real estate market has become more complicated. Seller must deal with things like disclosure Fair Housing Laws and even environmental issues. Many home sellers would rather list the home with full-service brokers to avoid all the hassles.
According to the National Association of Realtors (NAR), in 1997 13 percent of sellers sold their own homes. As reported in the NAR’s Profile of Home Buyers and Sellers 2011, by 2003 and 2004, the percentage of For Sale By Owner (FSBO) increased slightly to 14% of home sales consisted of FSBO transactions. By 2011, FSBOs made up just 10% of home sales transactions.
The NAR report reveals that the typical FSBO occurred in rural locations and large cities. In addition, sellers tend to be single male or females with lower median incomes. Mobile home sales made up a large portion of FSBOs. FSBOs sellers rely heavily on the Web and yard signs for marketing their properties.
Regardless of your profile as a home seller, following are some resources that can help ease along your FSBO transactions when selling your home:
Listing service like ForSaleByOwner.com and FSBO.com can help make the selling process less frustrating and help you guide you along the process. These firms specialize in providing Internet advertising services for owners who choose to sell their own properties. The companies are not licensed real estate brokers, or members of any multiple listing services.
The service they offer includes:
· List your home in your local Multiple Listing Service (MLS) and Realtor.com
· Offer services to advertise property
· Banner advertisements
· Option to work with a flat fee real estate broker
· Provides information on other service providers – legal, mortgages or movers
· General information, sample, contracts and links to other information related to the real estate industry.
These sites also have their own proprietary listings and cater to buyers.
Robert Irvin, author of For Sale by Owner: A Complete Guide, said in his book that it does not take a Ph.D. to figure out the correct price for your home. The NAR Profile of Home Buyers and Sellers 2011 revealed that FSBOs tend to get 100 percent of their asking price. Free real estate sites like Trulia and Zillow make this aspect of FSBO easy to find pricing information. ForSaleByOwner.com has offers access to an Internet-based appraisal service.
Working with a buyer’s agent can also help ease the FSBO process. Homeowners who elect to go the FSBO route enhances the chance of attracting ready, willing and able buyers and receiving top dollar for their home. You will need to negotiate a commission of around three percent, which saves half of the commission cost paid to a real estate broker.
In a buyer’s market and a slow economy, FSBO becomes a more difficult process. However, home sellers who have the time and temperament can save thousands of dollars by electing to sell without the services of a real estate agent.