For Sale By Owner

NAR's Profile of Homebuyers and Sellers in 2003, found that the amount of successful for sale by owner sold homes were 14 percent. This is a 30 percent decline over the last two years in the number of people successfully selling their home "by owner."

Many flat fee for sale by owner services have sprouted out of the natural affinity for the FSBO home seller to seek cheap marketing and representation. Many offer to sell your home for less than $500 for a no frills listings package.

It is still too early to tell if these sites offer much value to the consumer. But it definitely is helping to drive commissions down. And, it is pointed to as proof by those that believe the industry will soon dismantle commissions into "a la carte " style fees.

Comments

[Joshua Reed]

It looks like the future may be here. We should think about the emergence of internet stock brokerages, though. While they brought prices down initially, in the long run, people wanted and needed the service provided by full service brokerages. There will certainly be effects of the FSBO boom, but in the long run, I see it as a bump in the road.

[jeff]

Do you see a viability for the FSBO business?

[Debbie BInford]

In my area the discount brokers and those listing a home on MLS for $495 come and go quickly. The mainstay are full service brokers--those that deliver true value to their clients. Each Realtor is known by their services offered and those Realtors that are lazy and list and forget their clients will not last in the business. Bottom line--give clients the best service and attention for their money and they won't mind paying your comission.