The level of for-sale-by-owner transactions remains at a record low, according to the National Association of Realtors® 2007 Profile of Home Buyers and Sellers.

Only 12 percent of transactions in 2007 were for-sale-by-owner, unchanged from 2006. The level of homes sold without professional representation has continued to decline since 1997, when a record 18 percent of transactions were for-sale-by-owner.

“Realtors® add value to the real estate transaction no matter what market conditions may be,” said Pat V. Combs, NAR president from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “Realtors® are experts in attracting qualified buyers, negotiating on their client’s behalf, and ensuring a smooth transaction. As members of NAR, Realtors® also commit to a strict Code of Ethics to protect consumers in the real estate transaction.”

The survey also found that four out of 10 FSBO properties were not placed on the open market and were “closely held” between parties who knew each other in advance, such as family members or acquaintances. This additional data confirms that the majority of consumers selling on the open market are choosing to work with an agent.

A close look at "For-Sale-By-Owner" (FSBO) data from NAR's 2006 Profile of Home Buyers and Sellers

Each year a small army of home sellers throw caution to the wind and “go it alone” — without the assistance of a licensed real estate professional. This ever-decreasing band of risk-takers, ventures into the land of pricing, marketing, screening, scheduling, showing and paperwork, with the goal of saving some money. It's often an experience they find less than rewarding.

The numbers (if not the sellers) tell the story.

In 2006, just 12 percent of sellers chose the FSBO (“For Sale By Owner”) route, down from 13 percent the previous year, according to NAR’s 2006 Profile of Home Buyers and Sellers. This is down from about 20 percent in 1987. But more telling than the decline in FSBOs is the fact that 40 percent of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 7 percent of all home sales are open market FSBO transactions. The rest are simply unrepresented sellers in private transactions.

From NAR's 2006 Profile of Home Buyers and Sellers


Eighteen percent of FSBO sellers indicated that preparing the home for sale was the most difficult task when selling without the assistance of an agent, followed closely by understanding and performing paperwork (16 percent) and selling within their desired time frame (15 percent).

As for profit — after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.

Homes sold with the help of a real estate professional in 2006 sold on average for 32 percent more than FSBO sales. The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions.



Selling Your Home - Did You Know . . .

One-quarter of first-time buyers are single females who purchased their first home on a median income of $44,500.
 
From NAR's 2006 Profile of Home Buyers and Sellers

Top Ten: Home Features Desired by All Home Buyers

  1. Central Air Conditioning
  2. Garage (2 or more spaces)
  3. Walk-in closet in master bedroom
  4. Backyard/play area
  5. Cable/Satellite TV-ready
  6. High-speed Internet Access
  7. Separate shower enclosure in master/main bath
  8. Patio
  9. Fencing
  10. Home less than 10 years old

From NAR's 2006 Profile of Home Buyers and Sellers