Every year NAR, the National Association of Realtors, conducts a survey of home buyers and sellers from the previous 12 
months. The most recent survey, the 2008 Profile of Home Buyers and Sellers, which covers transactions from July 1, 2007 through June 30, 2008 has yielded some interesting results. This survey can be purchased through the National Organization of Realtors.
First, just a few comments on the methodology of the survey. In order to get a good cross reference of buyers and sellers, from those selling and buying on their own, to those using agents, the survey was conducted by a third party using tax records (as opposed to realty board MLS records) to provide the data. The complete methodology statement is included at the end of this article.
During the 12 month period included in the survey the following was found:
Home Purchases:
- Only 6 % of homes purchased we purchase directly through the seller of the For Sale By Owner (FSBO).
- 81% of homes purchased were through real estate agents
- 10% of homes purchased were directly through builders of the builders agents
- 3% of homes purchased were through foreclosure
Home Sales:
- 84% of homes were sold through real estate agents
- 3% were sold through foreclosures
- 13% were sold through FSBO. Of that 13% almost half, 6% were sold to buyers that were previously known to the seller.
Pricing: The median pricing of existing homes sold FSBO and through a real estate agent is as follows:
| FSBO | Agent Assisted | ||||||
| All Sales | All FSBO | Previously Knew Buyer | Did Not Know Buyer | All Agent Assisted | Agent Assisted Only | First FSBO Then Agent Assisted | |
| Median Sales Price | $204,900 | $153,000 | $165,000 | $150,100 | $211,000 | $211,000 | $200,000 |
| Median Sales Price as a % of Asking Price | 96% | 98% | 100% | 97% | 96% | 96% | 96% |
The above chart indicates that, in general, agent assisted sales result in 35% higher sales price in the 12 months ending 2008. Part of this is attributable to the probability that those selling to previously known buyers do not negotiate as high a price as they could, especially with family. Also, many FSBO’s are in rural areas and mobile homes and may tend to be priced lower. However, that does not account for the full difference in median prices. FSBO’s do get 1% higher median price vs asking price, but, still result in a lower net.
So what does it all mean?
OK, this might sound a bit self promoting, but, what it means is that FSBO’s that are not sold to previously known buyers are 7% of the number of existing homes sold, or less (in 2007 they were 6%). Also, FSBO sold homes average significantly less sales price than agent assisted sales. There are several reasons for this, which may include the following:
- FSBO sellers may not have, or know, or use the resources that gets their home the most visibility and therefore generate the most interest
- FSBO may not understand the complexities and subtleties of pricing
- FSBO sellers may not understand the negotiation process nor have the experience to conduct negotiations
- FSBO sellers are often (26%) in rural areas where prices may be lower
Using an agent, while providing no guarantee, can often result in a higher selling price providing a larger net to the seller, even taking commissions into consideration. For instance, using the median sales prices above, a sale’s price of $211,000 less a 6% commission of $12660 will still net 198340, well above the median of $153,000. Most FSBO sellers end up listing with a Realtor anyway, so, after trying for yourself, after a month or so, it might be a good idea for you to consider it.
For information about selling your home, please call me at 706-207-5290, or, you can click here to email me with any questions or to request a copy of my 99 Tips for Selling Your Home. To search for homes in the Athens area and surrounding counties and communities, as well N.E. Georgia, please visit my website, The Athens Real Estate Page.
Survey Methodology:
In August 2008, the NATIONAL ASSOCIATION OF REALTORS® mailed an eight-page questionnaire to 133,000 consumers who purchased a home between July 2007 and June 2008. The survey yielded 10,053 usable responses with a response rate, after adjusting for undeliverable addresses, of 7.9 percent. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent home buyers derived from county records. Information about sellers comes from those buyers who also sold a home.
All information in this Profile is characteristic of the 12-month period ending June 2008, with the exception of income data, which are reported for 2007. In some sections comparisons are also given for results obtained in previous surveys. Not all results are directly comparable due to changes in questionnaire design and sample size. Some results are presented for the four U.S. Census regions: Northeast, Midwest, South and West. The median is the primary statistical measure used throughout this report. Due to rounding and omissions for space, percentage distributions may not add to 100 percent.
