FSBOs (Homes for sale by owner) aren’t just growing in popularity in the States. Turns out, giving power back to the buyer is becoming a global trend. Take a look at these recent articles, all showcasing dissatisfaction with the current real estate models:
“The real estate industry cannot afford to insist on the traditional model of selling property, an academic and former real estate agent says.
“”Participants in the market are largely caught within the system and … in many cases people cannot see value for money.””
(from The New Zealand Herald, 2/27/08)
“[One particular] couple paid £398 in fees to have the flat listed online at Hatched.co.uk – a sum that covered photographs, floor plans and ‘shuffling the paperwork’, but otherwise the couple handled the sale themselves. ‘We had three local estate agents around and, frankly, nothing convinced me that they were going to be worth us paying £4,000 commission,’ says Mat. ‘Anyway, it’s hardly rocket science. The property programmes tell you how to make your home presentable. We didn’t go as far as having bread baking in the oven or coffee brewing in the kitchen – we didn’t have to. We sold at the right price in two weeks.’”
(from The Observer, 2/24/08)
“Selling on your own — while potentially a hassle — could save you roughly five per cent in broker fees. This varies, of course. For hard-to-sell properties, the savings could be as high as seven per cent, but in highly competitive markets (where brokers are cutting their commissions), the savings may be lower.”
The article goes on to suggest these tips for selling a property without an agent: Price properly, Cast a wide advertising net, and Do your research on making and closing the deal.
(from The Standard, 2/28/08)
BACK HERE IN THE U.S.
“When it takes more hours to become a cosmetologist than a real estate agent you know there is something seriously wrong with an industry,” says Stefan Swanepoel, author of the new 170-page real estate report. “It is unbelievable to think that the standard required to become a licensed real estate agent is between 30-120 hours whereas it takes about 1,200 hours to learn how to cut hair and do nails,” he says.
(from TransWorld News, 2/25/08)