BrokerageIndustry News

FSBO listings sink in buyer’s market

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

(Part four of a five-part series. See parts 1, 2, 3 and 5.) Discount brokerage and FSBO sites usually flourish in strong sellers' markets. During my 25 years in the business, it has been my observation, however, that FSBOs dramatically decline when we shift to a buyers' market. Discounters are also negatively impacted, often going out of business or changing their model to cope with long market times. What's interesting about our current marketplace is the number of people electing to sell "by owner" has actually declined despite the strong market. During 2002, the number of people who sold their home "for sale by owner" decreased from 24 percent to 20 percent, according to a California Association of Realtors study. In 2003, according to NAR's Profile of Homebuyers and Sellers, only 14 percent of home sellers actually sold their homes without the help of a real estate professional. Putting it a little differently, in 2003, the number of people who sold their house "for sale by owne...