SmartHomeOwners

In the US housing market, many home sellers are using the FSBO (for sale by owner) method to sell their home.  FSBO means the current owner will sell directly to a buyer without using the services of a realtor.  Let's look at some housing market statistics in the FSBO category for the US and explore how this type of sale typically works.

FSBO Stats for the US (2008)*

In 2008, 13 percent of home sales were FSBO transactions.  The typical selling price for FSBO homes was $153,000.  The average selling price for homes sold through a realtor was $211,000!  About 45 percent of FSBO sellers used the Internet to list their homes, and 42 percent displayed a "For Sale" sign in the yard.  Other methods used in the selling process included newspaper ads (22 percent), friend/neighbor recommendations (33 percent) and open house (18 percent).

FSBO Sellers Face Difficulties

There is a downside to selling a home without the assistance of a realtor.  Many FSBO sellers find that the advertising costs can be quite expensive.  Paying for ongoing ads in the local newspaper or online requires upfront costs whereas a realtor only takes a fee when/if the home actually sells.  Also, 13 percent of FSBO sellers said they were unable to sell their home within the planned length of time.  Selling without a realtor can take longer, again possibly due to lack of experience and/or proper amount of exposure to potential buyers. 

About 12 percent admitted to difficulty in getting the price they wanted.  Negotiations can become more heated when face to face with a potential buyer versus when using an objective go-between person such as a real estate agent.  Some FSBO sellers face other obstacles as well, such as inability to understand important paperwork, home staging problems, and lack of time to market and show their home.

If you are thinking of selling your home directly, consider these statistics and whether or not you feel the expense of hiring a realtor will be worth it.  By selling on your own, you can potentially save thousands of dollars in realtor commissions on your home sale.  But this savings can only be realized if you sell your home in a reasonable amount of time (before spending too much on marketing) and at the right price.  On the flipside, hiring a realtor can remove some of the pressure if you have a busy schedule and wish to leave the selling to someone else!

*FSBO statistics taken from Realtor.org website.