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For Sale By Owner -- FSBO
By NRA
The vast majority of home sellers in today's market rely on the expertise of a real estate professional to assist
them when they sell their home, and there's been a declining trend in the percentage of people selling on their
own.
Sellers make more money when they use a real estate professional.
The median FSBO (for-sale-by-owner) selling price in 2003 was 20 percent less than the median agent-assisted transaction
price. Although the agent-assisted price is skewed a little high because it includes a greater mix of more expensive
properties, the data demonstrates that sellers make more money by using a professional.
The level of home owners selling without a real estate agent has declined.
In 1997, 18 percent of owners sold their home without a real estate professional, according to The 2003 NATIONAL
ASSOCIATION OF REALTORS® Profile of Homebuyers and Sellers. In the first quarter 2003, it was only 14 percent.
The trend is clear.
Many people who bought directly from sellers knew them in advance of the transaction. Only 5 percent of buyers
in 2003 purchased directly from owners they didn't know in advance of the transaction, down from 11 percent in
2001.
Several factors appear to account for the decline in for-sale-by-owners: the increasing complexity of the transaction
process, with more disclosures and legal requirement than ever before; the amount of time required to market and
show a property; and security concerns about the motivation of strangers dealing directly with owners and walking
through their homes. Since FSBOs don't use a real estate professional, they have to do their own marketing to attract
potential buyers.
Real estate professionals are experts in marketing who can sell a home for more money in less time.
The biggest problem areas for FSBOs are in understanding and completing paperwork, preparing a home for sale, getting
the right price, and time for all aspects of the sales process.
Real estate professionals assist both sellers and buyers with a variety of the details surrounding a real estate
transaction. Real estate pros can help a home seller set a realistic price for the property and ensure the proper
paperwork and various inspections are handled correctly.
In addition, real estate professionals are experts in marketing properties to attract qualified buyers. A broker
or sales associate also can show a home more objectively than can a seller who is emotionally attached to the home
and who might become unnerved by prospective buyers' critical comments.
The real estate pro also checks the financial capability and bona fides of buyers before allowing them onto a seller's
property.
Copyright National Association of Realtors®
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