Saturday, November 25, 2006

Fewer FSBO's in '06

We saw this little nugget from the Nat'l Assn. of Realtors:

FEWER FSBO TRANSACTIONS

NEW ORLEANS, La. (NAR) – For-sale-by-owner (FSBO) transactions are fewer than ever, according to a new study from the National Association of Realtors (NAR) released here last week.

The “2006 National Association of Realtors Profile of Home Buyers and Sellers” shows a record low 12 percent of transactions are FSBOs. Market share for do-it-yourself sellers peaked at 20 percent in 1987.

In addition, many FSBO properties are not placed on the open market, according to the report. Forty percent of those transactions are “closely held” between parties who knew each other in advance. That is up from 39 percent in 2005 and 32 percent in 2004.

“When you factor out the properties that were not placed on the open market, the actual number of FSBOs is only 7 percent. The rest are simply unrepresented sellers in private transactions,” said NAR 2006 President Thomas M. Stevens.


I don't claim to have the skill to evaluate any of the research/data methods used to compile the study. But, taking its findings at face value, I wonder the cause of the decrease? My thought would be that the cut-rate brokerages and lowering commissions trend make using a real estate agent a better value than in the past.

3 Comments:

At 2:07 PM, Anonymous Chicago Real Estate said...

re: "cut-rate brokerages and lowering commissions" & "FSBO" - IMHO you get what you pay for that's for sure.

Brian Nygard
Team IllinoisRealEstate.com
RE/MAX Grand
www.IllinoisRealEstate.com | Blog | Forum

 
At 8:38 AM, Blogger Peter said...

Brian,

I agree with you to an extent. But I do think that the Internet is revolutionizing even real estate brokerages and some of these online only places fit right into our lifestyles now.

Peter

 
At 1:31 PM, Blogger Eric Rojas said...

Another reason, including discount brokers, may be the longer market times. People just don't have the time to be held hostage to their place for 6 months... plus the anxiety of not knowing if they are doing the right things. Staying home for open houses, rushing home for showings, denying showings etc...

A few years ago, in a nice area, you could just put up a sign and get an offer (closing the deal, that's another story). My cousin, a stay at home mom at the time, sold her home in Lake Zurich... the whole 9 yards (she was a paralegal in a past life however).

 

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