Market Changes Favor FSBOs

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 http://www.fsboamerica.org
- FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm
to sell your own home yourself with a free 1 month listing.