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Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
I saw NAR figures for January in Orlando that had over 29 percent sales by owner. What's going on? What's the figure for Walton County? Are the independent firms like Help-U-Sell etc. having an impact, or is this just a reflection of the advent of the internet?
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
IMO there are 2 sides of the FSBO fad:

(Side 1) Since every-other-person in Florida (and 1-in-5 in other states) has a real estate license, and those who don't are married to or dating one, these folks are handling their own transactions.

(Side 2) During the red hot market, owners got fed up paying 6% to someone who would "sell" their home within 30 minutes of listing (without even having to change out of their pajamas).

In a cooling market, when inventories are rising and the only thing buyers are buying is their time...owners don't want to have to "schlep" looki-lou's through their homes or blow up balloons and waste Sunday afternoons at their Open House sitting around like sparrows waiting for a horse to take a dump.

I suspect business for realtors will pick up but they're going to have to work real hard for the money and try to talk owners "down off the roof" when pricing their homes for sale (which will be difficult considering the fact that they sold these folks the homes a year ago and said that prices would be rising 20% per year).
 

Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
Thanks for discussing the internet Shelly. I'll now go find the razor blades.
 

30A Skunkape

Skunky
Jan 18, 2006
10,286
2,312
53
Backatown Seagrove
My opinion is that residential real estate is a pretty simple business (yes, there are exceptions) and much of the aura that shrouded the process has been removed by the internet. I am not trying to offend anybody-it is the same concept as online travel bookings. The value of a realtor is being able to get warm bodies into the property who are not 'kicking tires';whether or not this is worth 6% depends on how quick you want your property to move. If time is on the sellers side, I think most folks find filling in the blanks on a disclosure list and then a purchase agreement, then letting a lawyer run with the ball is worth the 'trouble'.
 

OnMackBayou

Beach Lover
May 15, 2005
227
0
Mack Bayou, Sandestin
I have bought and sold lots of real estate. When I think of my first purchase many years ago-that was simple. Few disclosures, no attorney,few mortgage choices, all you had to look at were the MLS listing books.

It's so much more complicated now. I would never even consider trying to make a significant real estate purchase or sale without all the professional help possible, including a good inspector, attorney, appraiser, mortgage broker and Realtor. In almost every transaction in which I've been involved one or more of these people has saved my a--.

The only time I could imagine someone selling by themselves would be in a hot market. If you have a good idea of what your home is worth, and it's only going to be on the market a short time, maybe it's worth the effort and risk. But in a slow market when a property may linger, I can't imagine. Most people have to work for a living. How do you justify arranging showings during the day when you're involved with other priorities? And do you really want to spend your weekends for the next six months being available to show property when people traditionally want to look? Not me.
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
According to the most recent issue of Florida Real Estate Headlines, Vol 11 - Issue 6, Feb 20, 2006,
"Sellers (in Florida) who chose to sell their home on their own fetched $45,000 less than they would have if they used a real estate professional."

Knowing a bit about the business, I have certainly learned a thing or two about hiring a professional -- I am one. There is some truth to that mentioned about a property in a hot market selling itself. However, what is neither seen nor heard about is the nightmare property or transaction (maybe only 5% of all transactions, maybe more, maybe less - I have no stats, but my own experience). If you do not have a professional who handles these transactions on a regular basis, you may be in for a world of trouble. Most transactions are completed without incident, but a good Realtor truly gets paid for the nightmare transactions. In some ways, it is not too different from an Airline Pilot. Most of the flights are smooth sailing, but they, too, are thrown a doozy on occasion, and that is when the experience pays off. Sure, a seller and or buyer may save some money by selling or buying a By Owner (FSBO), but not without effort. If a problem arises or a contract doesn't address all of the issues, either the buyer, seller, or both, can be in for a lot of headaches and potentially, a financial nightmare. I guess some people are willing to play the odds and take their chances.

I don't have the stat in front of me, but somewhere recently I read that only about 25% of all FSBO's actually end up selling their property on their own. I guess that tidbit may present the rest of the story.
 

Amp22

Beach Fanatic
Jan 11, 2005
287
7
Some realtors should be thrown under the bus and some will save your deal.
 

Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
Yes, this is all true, but my intent was to ask all the effect of the internet and it's relationship with FSBOs. Recently the Feds have taken on Realtors regarding exclusive access to the MLS. Is this not a battle for control of sales information....and who ultimately benefits from downward pressure on commisions, if anyone. It seems technology may be at odds with an entire industry here. Or is it?
 

Unplugged

Beach Fanatic
Jul 31, 2005
519
0
You're right Bob - topics sometimes drift on the board. I am also a local agent, and my clients are very internet savy. While they stay very well informed of the market via the web, they also understand the role of a good agent. To the contrary - technology has strengthened the industry. As SJ stated so well:
" ...If a problem arises or a contract doesn't address all of the issues, either the buyer, seller, or both, can be in for a lot of headaches and potentially, a financial nightmare. I guess some people are willing to play the odds and take their chances... "
 
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