The level of for-sale-by-owner transactions remains at a record low, according to the just-released 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, according to the survey. 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.

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 sustained decline in the percentage of people selling on their own.


Thirty-two percent of people who bought directly from sellers knew them in advance of the transaction, meaning that about one-third of FSBO transactions are not placed on the open market.

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 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.

The biggest problem areas for FSBOs are in getting the right price, preparing a home for sale, and understanding and completing paperwork.

But FSBOs have no access to fundamental marketing services, such as Multiple Listing Service (MLS) and cannot list their homes there. They also have no access to other marketing avenues such and REALTOR.com, Virtual Office Web sites and the Internet Data Exchange.

Real estate professionals are experts in marketing who can sell a home for more money in less time.

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 seller set a realistic price and ensure the proper paperwork and various disclosures and inspections are handled correctly.

In addition, real estate professionals are experts in attracting qualified buyers. A broker or sales associate also can show a home more objectively than can a seller who may be 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.

The above information was obtained from;
Copyright NATIONAL ASSOCIATION OF REALTORS®
Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020
1-800-874-6500

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