GAINING TRACTION:

Increase in FSBO Sales

According to the National Association of Realtors (NAR), approximately 8% of home sales in the U.S. were FSBO transactions in 2022, a figure that has shown a gradual increase over the years. In contrast, in 2010, FSBO sales accounted for only about 6% of home sales.

The NAR also reported that FSBO homes sold for a median price of $225,000 in 2022, compared to the median price of $330,000 for agent-assisted sales, indicating that while FSBO sales may be lower in price, they still represent a significant portion of the market.

Growth of Online Platforms

The rise of digital marketing and online real estate platforms has made it easier for homeowners to sell their properties independently. Websites like Zillow, Redfin, and Realtor.com have seen increased traffic, with Zillow reporting over 36 million unique monthly users in 2022.

A report by the Real Estate Standards Organization (RESO) indicated that over 70% of buyers now begin their home search online, emphasizing the importance of digital visibility for FSBO sellers.

Changing Attitudes Toward Real Estate Agents

A survey conducted by the NAR found that 56% of sellers believe they can sell their home without an agent, up from 47% in 2010. This shift indicates a growing confidence among homeowners in managing their sales independently.

 The same survey revealed that 73% of sellers who used an agent were satisfied with the experience, but there is an increasing number of sellers willing to explore FSBO options due to perceived cost savings.

Cost Savings Considerations

Homeowners are increasingly motivated to sell FSBO to save on agent commissions, which typically range from 5% to 6% of the sale price. For a home sold at $300,000, this can translate to savings of $15,000 to $18,000.

A study by Clever Real Estate found that nearly 70% of sellers considering FSBO cited saving money on commissions as a primary reason for pursuing this route.

Demographics of FSBO Sellers

The NAR’s Profile of Home Buyers and Sellers (2022) indicates that the typical FSBO seller is often more experienced in real estate transactions. Many FSBO sellers are repeat sellers (over 60%) who have previously bought or sold homes, contributing to their confidence in managing the process independently.

FSBO sellers tend to be younger, with a significant percentage (nearly 40%) being between the ages of 30 and 49, reflecting a demographic more comfortable with technology and online marketing.

The private listing sector and
For Sale By Owner (FSBO) sales have been gaining traction
in recent years,
reflecting a shift in
how homeowners approach
the selling process.

Regional Variations

FSBO sales vary significantly by region, with higher rates in areas with strong seller markets. For instance, in 2022, the Midwest saw approximately 10% of home sales conducted as FSBO, compared to 6% in the Northeast.

States with higher home values, like California and New York, have seen a slight decline in FSBO transactions as sellers prefer the support of agents in navigating complex markets.

Future Trends

Market analysts predict that as technology continues to advance, the FSBO sector will continue to grow, with improvements in online marketing tools, virtual tours, and digital transactions making it easier for sellers to manage their sales without an agent.

The COVID-19 pandemic accelerated the adoption of virtual selling practices, and many sellers have become accustomed to these methods, which may lead to sustained interest in FSBO sales even as the market normalizes.

Conclusion

The statistics clearly indicate a growing trend toward private listings and FSBO sales, fueled by changing attitudes, technological advancements, and a desire for cost savings. As more homeowners become empowered with the knowledge and tools to sell independently, the FSBO sector is likely to continue expanding, reshaping the real estate landscape in the coming years.