NAR Survey: FSBO Rate Remains Steady in 2007
The level of for-sale-by-owner transactions remains at a record low, according to the just-released NATIONAL ASSOCIATION OF REALTORS® 2007 Profile of Home Buyers and Sellers.
Only 12 percent of transactions in 2007 were for-sale-by-owner, unchanged from 2006, according to the survey. The level of homes sold without professional representation has continued to decline since 1997, when a record 18 percent of transactions were for-sale-by-owner.
“REALTORS® add value to the real estate transaction no matter what market conditions may be,” said Pat V. Combs, NAR president from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “REALTORS® are experts in attracting qualified buyers, negotiating on their client’s behalf, and ensuring a smooth transaction.”
The survey also found that four out of 10 FSBO properties were not placed on the open market and were “closely held” between parties who knew each other in advance, such as family members or acquaintances. This additional data confirms that the majority of consumers selling on the open market are choosing to work with an agent.
During the session, “FSBOs: Thinking Outside the Box,” attendees learned about the FSBO marketplace, how to locate unrepresented sellers, and different approaches to FSBO sellers.
“It is incumbent to demonstrate to unrepresented sellers the value that REALTORS® add to the transaction,” said Joseph Marovich, owner of Marovich Business Institute and session speaker. “Real estate professionals are experts in marketing and negotiation. They know best how to prepare a home and maximize value, provide broader exposure to the market and are more likely to generate multiple bids.”
Marovich said practitioners can help sellers access fundamental marketing services, including the MLS. With representation, consumers also have access to major online marketing avenues such as REALTOR.com and other Web sites with a large pool of listings to which buyers are attracted.
Although there are sites that cater to unrepresented sellers, their total listings are in the tens of thousands, in contrast with more than 3 million homes showcased on NAR’s consumer Web site, REALTOR.com.
— REALTOR® Magazine Online
Only 12 percent of transactions in 2007 were for-sale-by-owner, unchanged from 2006, according to the survey. The level of homes sold without professional representation has continued to decline since 1997, when a record 18 percent of transactions were for-sale-by-owner.
“REALTORS® add value to the real estate transaction no matter what market conditions may be,” said Pat V. Combs, NAR president from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “REALTORS® are experts in attracting qualified buyers, negotiating on their client’s behalf, and ensuring a smooth transaction.”
The survey also found that four out of 10 FSBO properties were not placed on the open market and were “closely held” between parties who knew each other in advance, such as family members or acquaintances. This additional data confirms that the majority of consumers selling on the open market are choosing to work with an agent.
During the session, “FSBOs: Thinking Outside the Box,” attendees learned about the FSBO marketplace, how to locate unrepresented sellers, and different approaches to FSBO sellers.
“It is incumbent to demonstrate to unrepresented sellers the value that REALTORS® add to the transaction,” said Joseph Marovich, owner of Marovich Business Institute and session speaker. “Real estate professionals are experts in marketing and negotiation. They know best how to prepare a home and maximize value, provide broader exposure to the market and are more likely to generate multiple bids.”
Marovich said practitioners can help sellers access fundamental marketing services, including the MLS. With representation, consumers also have access to major online marketing avenues such as REALTOR.com and other Web sites with a large pool of listings to which buyers are attracted.
Although there are sites that cater to unrepresented sellers, their total listings are in the tens of thousands, in contrast with more than 3 million homes showcased on NAR’s consumer Web site, REALTOR.com.
— REALTOR® Magazine Online