NAR Finds For-Sale-By-Owner Transactions Remain at Record Lows
LAS VEGAS, November 13, 2007 – 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. The survey was released today at the 2007 REALTORS® Conference & Expo, here through November 16.
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.
During the session, “FSBOs: Thinking Outside the Box,” attendees learned about the FSBO marketplace, how to locate unrepresented sellers, and different approaches to FSBO sellers.
“It is incumbent on Realtors® to demonstrate to unrepresented sellers the value that Realtors® add to the transaction,” said Joseph Marovich, owner of Marovich Business Institute and session speaker. “Realtors® are real estate professionals who are experts in marketing and negotiation. They know best how to prepare a home and maximize value, provide broader exposure to the market and are more likely to generate multiple bids.
Marovich noted that a Realtor® can help sellers access fundamental marketing services, such as a multiple listing service. With representation, consumers also have access to major online marketing avenues such as REALTOR.com and other Web sites with a large pool of listings to which buyers are attracted. Although there are sites that cater to unrepresented sellers, their total listings are in the tens of thousands, in contrast with more than 3 million homes showcased on NAR’s consumer Web site, REALTOR.com.
The 2007 REALTORS® Conference & Expo continues through Nov. 16 in Las Vegas. The meeting is featuring more than 200 conference sessions and 744 exhibitors. A record number of more than 30,000 Realtors® and guests from the United States and abroad are expected to attend.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
