Market
Changes Favor FSBOs
by Raynor James
Drastic paradigm shifts in how the residential
real estate market works have been on the way for several years now.
The change has really become apparent over the last year. It is easier
for people to sell their homes themselves as FSBOs (for sale by owner)
as a result. Let’s look at how things used to work and how they work
now in regard to the traditional method of using a real estate
brokerage firm, and I think you’ll see why.
Real Estate Sales – The Old Way
Not so long ago, most people who wanted to buy a
home would go to a real estate broker’s office. They would meet with an
agent and tell him or her what sort of home they were looking for. The
agent would advise the buyer to get a lender letter (if they didn’t
already have one) and give them a short list of lenders. The agent
would then do a computer search of the Realtor multiple listing
services for them.
After the agent found properties which met the
buyer’s criteria, the agent and buyer would develop a list of
properties the buyer wanted to see. The agent would print these out and
make arrangements for the buyer to see them. They’d get into the
agent’s car and go from house to house until the buyer found something
he wanted to buy. Then they’d work up a contract offer together.
Sometimes this process could be completed in one day (especially if the
buyer already had a lender letter in hand). Sometimes it took several
days’ sessions.
Real Estate Sales – The New Way
Today most homebuyers do their own computer
searches. They may have favorite sites like realtor.com or homes.com,
or they may do a generic search engine search to find a site. Some do
search engine searches specific to the area where they want to buy,
such as “San Diego + California + homes for sale.” Results tend to turn
up both sites with Realtors’ listings and sites with FSBO homes.
Today’s buyers tend to call an agent about Realtor
listings (often making an appointment to meet at the home) and call
owners about FSBO listings. Many buyers are confident enough to look at
both. Less experienced buyers may do their own searches and then ask an
agent to show them the Realtor listings which interest them. Then, if
they feel comfortable with the agent, ask if the agent can show them
the FSBO homes as well. Most will. Especially if the buyer is willing
to sign a "Buyer Broker” agreement.
Exceptions
There are now (and perhaps always will be) people
who prefer to work with an agent in the old way. People who are very
busy earning a good living are an example of one group which is apt to
want someone else to do “pick and shovel work” for them. Older people
who have lived in their homes a long time and want something they can
handle with less work are also apt to appreciate full, old fashioned
real estate service from agents. Still, larger and larger numbers of
people are doing their own initial searches. These searches tend to
turn up FSBOs as well as Realtors’ listings. In fact more and more
people are actually doing searches specifically designed to seek out
FSBO listings.
The New Tilt
I think you can see why this movement toward
buyers’ doing their own initial searches on the Internet works in favor
of FSBO sellers. The propensity for some buyers to include “FSBO” in
their search criteria tilts things even further in favor of owners who
are selling their own properties. These seemingly simple changes have
completely restructured the way the residential real estate market
works. If you’re a FSBO, you can smile all the way to the bank.
Raynor James is with FSBOAmerica.org - a FSBO homes
for sale by owner site. Visit our "Sell My Home" page
to list your FSBO Home or visit our home buying page to
see homes for sale.
Raynor James may be contacted at http://www.fsboamerica.org
