FSBO vs Realtor Statistics: What Are They?

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Real Estate Agent with One Sotheby's International Realty- Miami Beach Real Estate

  

 

I was watching Property Ladder on TLC earlier this week and the host, Kirsten Kemp, was giving property sales stats on FSBO vs. agent-handled sales.  Here are the stats she gave, I was riveted:

 

"Stats show that the median selling price of a FSBO are 15% lower than a house that is listed with a Realtor.  Homes listed with Realtors sell in less than half the amount of time than FSBO's"

 

My question:  Does anyone know where she/they got these stats?  I'd love to (as we all should) have these stats at my fingertips.

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Anonymous
Jackie

As with everything it's about the location. And the city and that particular market. Here in NYC, the FSBO properties do not sell any slower or lower. FSBO sellers can list on the NY Times like everybody else, and that's where all the buyers look because there isn't MLS in NYC. There are other reasons to use a realtor here that's more to do with saving time for busy people. But you see a lot of households with at least one stay-at-home parent who can be at home to handle everything, deciding to go the FSBO route.

Jun 23, 2008 04:04 PM #23
Rainmaker
206,872
Nick Good
The Good Home Team with Keller Williams Realty - Allen, TX
www.TheGoodHomeTeam.com

I've tried searching for the unbiased statistics and have yet to find a good source.

 

 

Thanks,

Nick Good

Realtor

Keller Williams Realty

www.NickGood.com

Sep 10, 2008 03:25 PM #24
Rainmaker
206,872
Nick Good
The Good Home Team with Keller Williams Realty - Allen, TX
www.TheGoodHomeTeam.com

I've tried searching for the unbiased statistics and have yet to find a good source.

 

 

Thanks,

Nick Good

Realtor

Keller Williams Realty

www.NickGood.com

Sep 10, 2008 03:25 PM #25
Anonymous
Rebecca

Hi,

If anyone is still reading this thread, here's the factors to keep in mind about this stat and the lingo that goes with it:

1. It states that the median price is 16% higher. That means they either poll people or get number from their database and then choose the middle number of the list of Realtor SOLDs and the middle number of the list of FSBO SOLDS. For example:

Realtor: $100,000;  $130,000;   $210,000;     $213,000;   $220,000

FSBO: $100,000;   $130,000;    $190,000;      $240,000;   $240,000

So in this (totally made up) list, the median sold by a Realtor is $210,000, and the median sold by a FSBO is $190,000.

What does this mean...probably nothing. In fact, even looking at averages means nothing. If the average of homes sold by a Realtor was $400,000 and the average of homes sold FSBO was $300,000, this would still mean nothing. Because the averages could be for homes in totally different price brackets (and usually is). If a lot of millionares sell their mansions with agents, but a lot of middle class people sell their regular homes FSBO, then the average price is going to be skewed higher for the Realtor price. That doesn't mean that a Realtor can get you more money for your home. Just that Realtors sell higher priced homes.

The point is that many Realtors and their organizations are trying to make FSBOs feel unequal to selling by themselves, when the fact is that most FSBOs only have marketing and pricing issues when selling. They list for too much and advertise too little. I don't know why there is a real estate war going on between FSBOs and Realtors (or rather, I do understand that there is a $$$$ war going on), but let's cut the BS and just let people get on with selling and buying homes. FSBOs aren't going away, and Realtors aren't going away. There's room and a need for both. (tongue in cheek...) Why can't we all just get along?

(before someone accuses me of being a FSBO spy, I'm a real estate photographer).

Jan 27, 2009 01:54 PM #26
Rainer
1,738
Andrea Passantino
RE/MAX Realty Suburban - Lenexa, KS

I know this is an old blog - but I couldn't resist. I say if FSBO's want to do it on their own - best of luck. I respect the process, but think going it alone is crazy. I had a couple who I met with who were coming home during their work days to show their home. They were being docked 1/2 a vacation day every time to show their home to non-qualified buyers! What a waste of time! I would never show a home to someone who hasn't been pre-qualified. Also, they were sitting in on their own open houses? A potential buyer is never going to feel comfortable with the owners sitting by, emotionally attached to their home, following them around the house. Another waste of time.

Currently we have a 12 month inventory of re-sale homes here in KC - and that's with our enormous exposure reach both locally and nationally. So I say, if a FSBO wants to try to compete with that...best of luck.

Mar 12, 2009 10:45 AM #27
Anonymous
Pamela Shipley

In my market area (Southern Ohio) a great majority of FSBO's eventually tire of the process and competition, then list with a Realtor. Sadly, most homeowners attempt to sell their own home in the spring when the competition is tough, overprice their homes either because they are so emotionally attached, or because they do not understand how to research the market,and they tend lose money at their real jobs to show their homes to unqualified buyers. I have also found that buyers are not as trusting of homeowner/sellers as they are with their own agent with whom they have established a relationship. Homebuyers, especially first timers, look to agents to for education and to get the best home they can for the money. Most homeowners think a sign and an expensive ad or two is all that is needed to sell. The art of the sale and actually getting it to closing is simply lost on most of them. I give them credit for trying, and sometimes it does work out, but in today's market, most find it more profitable and less of a hassle to list with a good Realtor.

Apr 14, 2009 01:45 PM #28
Anonymous
Emy May

Many people I know do not trust Realtors, so they sell themselves.  I heard many stories of  fake showings when the seller is getting frustrated, inflating the price to get the listing, and flat out dishonesty.  It is a shame that some disreputable Realtors ruin it for the ethical ones.  

Jun 17, 2009 06:19 AM #29
Anonymous
Cheryl Smith

Wow- what a string. I have to add to it from my experience

While stats are always subject to interpretation, number of data points, where the source is from- GOOD TO BE PRUDENT and not to believe everything, I have taken FSBO listings and sold them at a higher price than that at which the seller listed them (and failed to sell). Now THAT is a real and unbiased stat! I would say the saving the seller made was over what I earned also.

Plus, comments on Realtors, nice posting Eddie Clay and you're dead on.

Over the good years the real estate profession has morphed from a sophisticated service provider, helping clients with the most important financial decision they have ever made or ever will in their lives, into a career that you can earn mega bucks but sitting on your butt while allowing their buyers be ripped off and simply pressing the "active" key on the MLS to sell listings.

And yes, there are many Realtors that make me ashamed to be a Realtor. BUT this new market is great because the Realtors that still exist are actually GOOD because they have to WORK with integrity for their clients. It has been a fantastic and long awaited "purge" of the riff raff. 

Cheryl

Oct 08, 2009 03:58 PM #30
Anonymous
Michel Ditlove

All this is well and good and possibly true, but where it falls apart is that you as the seller do not have to accept an offer you don't want. If the offer is too low, simply do not accept or make a counter offer where you want to be, allowing for however more dickering you want to do. Generally, it's like selling any product or service where negotiation is expected, the lower the offer, the less room for maneuvering. Example: If I list for 500, I've already decided that I'll accept 475 and will negotiate accordingly regardless of the offer, if the offer is high enough, I'll accept sooner and make my counteroffer based on that.

May 12, 2010 01:03 PM #31
Anonymous
Shelly

I've never known one friend or family member or friend of friend or family member who has ever sold their home by themselves.  Not one.  The couple of FSBOs I have known have been such dismal failiures that they eventually turned to a Realtor to help sell their property.  

Jun 04, 2010 10:14 PM #32
Anonymous
mark

Nice to see the realtors and their anti-fsbo propaganda hogwash are well represented as usual.  FSBO "is" a viable alternative to listing with an agent.  That said, it isn't for everyone. I personally have sold 3 properties via the FSBO route.  THe last 2 I listed with a Flat Fee MLS agent.  I know a number of realtors, they rely very heavily on MLS.  70% of all buyers find the home they purchase online BEFORE they hire an agent.  The reality is that 5/6% of sale price is a hellva lot of money to pay for someone to open a door and show your house to a buyer that has already shown an interest in your house.  A Realtors primary tool is MLS and Realtor.com - period - END OF STORY.  Realtors don't sell homes they show and write up boiler plate contracts.  Most have very limited educations outside of their real estate license.  I would suggest a flat fee mls, a bit of a personality and a good real estate lawyer to draw up the contract will come in at about 1.5% of sale price.  With the average home selling at $280K that works out to roughly $10,000 AFTER TAX SAVINGS!!!!!!  Yeah FSBO doesn't work - think about who stands to lose the most here and then decide if they may be slightly one-sided in their arguements.  Surprisingly the old standard - "you don't knwo who you're opening your door to..." scare tactic isn't posted yet.

Aug 20, 2010 01:39 PM #33
Rainer
212,392
Jane Becker
Keller Williams Home Team AdvantEdge - Worcester, MA
CRS,ASP,ABR,CBR,CDPE,LMC,E-PRO,GRI

I couldn't find the stats.  I looked on Realtor.com and it brought me to ad page.  I heard local papers and usa today has done stats, not just NAR.  If anyone knows where they exist, please let me know.

Sep 30, 2010 03:46 PM #34
Anonymous
conn

reagrding marks statement that it inly costs 1.5%  when you use a flat fee mls service.  Once in the mls you will end up paying a buyer agent at least 2.5 %.   then add in you 1.5 cost now your at 4%.  Some full service broker list below 5 % percent so its probably better to find a full service broker and get them to list at around 4.5% which is very close to your example but now you get the benefit of not having to do any work or stress over selling.  doesnt seem worth the hassle

Oct 10, 2010 06:37 PM #35
Anonymous
Frank Fuentes

Okay....I'm convinced its all about exposure ( and if you don't agree with that then you're in denial) just like stocks and free markets in general. I'm going to conduct the research myself by pulling stats of buildings in my area. I will report shortly. Meanwhile....looking for a skillfull agen in NJ ? Go to http://www.luxuryhomesonthewater.com

Feb 27, 2011 12:18 PM #36
Anonymous
Frank Fuentes

I agree with Eddie Clay comment #21.............Also, if I may add, most do-it-yourself people regret not hiring an industry professional.

Do it youself laywers..........go to jail

"    "      "    Construction ..sloppy jobs & end up spending 3x after someone corrects their mistakes

"    "      "    Taxes........audited or leave money on the table

"     "      "   Medicine....forgetaboutit...! gotta be nuts

"     "       " Stocks.......If you dont know how to read annual reports, prospectus, financial reports than you better stick to mutual funds. lol

 

luxuryhomeonthewater.com

Feb 27, 2011 01:11 PM #37
Anonymous
Whadayano

Why isn't anybody talking about the NEW FSBO category... Flat Fee MLs listings that allow FSBOs to co-op with buyer agents, get MLS exposure, AND save the listing side commission.  For a several hundred bucks!  These services are everywhere, and growing like crazy. 

NAR includes these FSBO's who list with a Flat Fee as "realtor assisted", so their NAR statistics look good!!!  NAR doesn't reference this group at all.   Give me a break.

Google FSBO, or FLAT FEE MLS, and you will find a HUGE underground source of national and local FSBO sites, agent sites, title companies, etc that are mushrooming up to take on these listings.  These "FSBO's" are unreported trends...conveniently disguised by NAR as "agent assisted sales"...

 And in case you're wondering, I'm an agent.  Professionally and long term.  I see a need for realtors...FSBO isn't for everyone.  But, don't act like this trend of savvy sellers are not there.   I lost a lot of respect for NAR when I read their statistics section on FSBOs. Our commissions are falling, and they just put their head in the sand, and "say it ain't so"...  NAR is good at that.   

Mar 13, 2011 12:48 AM #38
Anonymous
Trying to decide FSBO vs. agent

Thanks for offering the great and interesting opinions!

We are sellers currently trying to decide which route we will take.

We live in a very small community with few agents. The town has national historic designation, was the filming location of a popular TV show, and is a tourist destination (lots of second homes). Our home was built in the last 5 years and designed to match the historic character, it is located in the most "desirable" section of town (according to the real estate agent) and is significantly larger than most the adjacent historic homes. 

We are trying to work with an agent who is locally known to be good - we even purchased this place through her originally. However, I do feel that I am going to be ripped off because she will simply add it to the MLS listings, plant a sign, and post it on craigslist if I am lucky. 

Why do I think that?

I contacted her a few months ago and told her that a relative is moving to town and is interested in a particular house, or others in a similar price range. She said that someone was looking at it the next day and she would contact us after with an update. Then.... nothing.  No return call or email... 

I contacted her again once we decided that another location may be better for us in the long term since the relative is moving out. A week later she stopped by and talked to us, was very encouraging about the likelihood of moving the house fast and getting what we need out of it. She said that she would follow up right away with a further description of what she would do in terms of advertising, etc. Now, 9 days later, we haven't heard a peep. 

We really WANT to believe that she'll perform for us (I know her kids and everything), but she hasn't given us any reason to think that she will follow through on her promises. We are thinking of going FSBO because there simply are not that many agents in our area that seem better. 

Just thought I'd post our situation... and totally open to advice. Thanks.

Apr 24, 2011 11:07 PM #39
Anonymous
Jack Maxwell

I believe the statistics you are looking for are in NAR's Profile of Home Buyers and Sellers.  You can find it on-line on realtor.org for a small fee of $19.95 for members or a more substantial fee of $149.95 for non-members.

May 31, 2011 10:28 PM #40
Anonymous
JD

As someone considering my options, I must say that the agents posting the same old reasons to use a realtor are only driving us away. Bottom line for you (as an agent) is that you won't show or work with an FSBO. After reading the comments left by seasoned professional agents, that there are Flat Fee MLS services available and they can work for some of us, I realize there are still some pros out there that would certainly be worth the money. But that doesn't change our bottom line. Your fees are too high for the amount of work you do. Period. Change your fee structure. Learn to compete.

Jul 24, 2011 02:32 PM #41
Anonymous
Janet Thornton
Did you all see the article about the Founder of ForSaleByOwner.com? After 6 months of trying to sell his NY flat on his own, and using his own service, he eventually turned to a broker. Turns out he had it priced way too low, and after hiring the broker, sold his flat ABOVE list....could have saved himself a lot if time and $$ if he used a realtor from the beginning. I find this happens a lot with FSBOs.
Sep 24, 2011 03:15 PM #42
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