Seeing lots of FSBOs in your market?

Seeing lots of FSBOs in your market?

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

Wondering if others are seeing in their market what I'm seeing in mine? 

FSBOs as a % of homes for sale seems a lot higher than I normally see.

I have 5 older / transitioning friends selling their homes now through August. 4 are $500-575k houses, one over $900k.  I am sad to see them leave,  also surprised they are handling their long-time primary homes on their own.   

Additionally, the last 3 estate sales and 2 yard sales I went to plan to sell FSBO also.i ran out of cards. Always ask.

Main reason?  Commissions of course.  Most think it's 6%, but all mine over $200k have been 5%.  Agents should get the word out its 5% (if so). 

Other main reason?  Assumptions of ease.   Easy to value,  market, produce and negotiate offers., etc.  Surprised by this since I know dealing with buyers and knowing all the disclosures etc isn't common knowledge. 

Agents- I think there is a commission level where price resistance will drop.  My $950k house friend won't let anyone charge him $50k to do what he thinks he can do.  Same with the $550k people.  $30k is a lot of $. If the numbers were closer to $29k and $19k I think they'd feel different. 

Do realtors / agents see what's happening?  Better 4% of something than 100% of nothing I would think. With values rising so quickly, do you all seriously plan to keep it the presumed, antiquated 6% forever?  If so, I expect more sellers to say forget you, I'll do it myself. 

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    Less FSBOs than normal in my market. When we do have them, they are typically at the lower price points, not the higher ones.

    There seems to be only 1 factor that moves commissions.....the amount of licensees in a market. It is cyclical, with the cycle operating counter-cyclical typically to the actual real estate cycle.

    As the number of licensees increases, average commissions drop, and as the number of licensees contracts, average commissions rise. 

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