Category: Finance, Real Estate.
As Canada s real estate market continues to defy popular predictions of a slowdown, privately- transacted sales are keeping pace as homeowners look for ways to pocket the fees usually collected by real estate agents.
On a$ 250, this can amount, 000 home to$ 15, 000, a hefty sum for most Canadians. Many owners are now choosing to bypass real estate agents to sell their homes themselves in order to save the average six per cent commission most agents charge. Savvy buyers are also seeking out FSBO homes, realizing they can usually get a better bargain without the broker s fee padding the sales price. Many brokers tout dire warnings of slower sales and lower prices than those obtained by qualified professionals . The increasing popularity of" For Sale by Owner" or FSBO, as it is known, is understandably unwelcome by real estate brokers, who see themselves squeezed out by those who take advantage of the internet to market their homes on their own. Indeed, real estate agents stand a lot to lose from FSBO. So it is little wonder they wish to discourage those who are considering just how much it might pay to sidestep their services.
In fact, they stand to lose exactly what sellers stand to gain: a lot of money. But despite the statistics widely quoted on all sides of the divide, the truth is that until recently almost no one was tracking FSBO numbers, except the FSBO websites themselves. However, a recent study in Madison, Wisconsin by a group of university professors set out to do just that, comparing FSBO with traditional realtor- brokered sales using the Multiple Listing Service or MLS. So assessing just how many people go the FSBO route, and how many are successful at it, has been tricky. On average, they found FSBO sales had a higher net gain for the owner, thanks to the elimination of the brokerage fee, while broker- assisted sales were generally faster than private home sales. Michael Lawrence, president of PropertySold. ca, a Canadian FSBO website, maintains the time to sale depends on all the same variables, no matter who is doing the selling. "Location, pricing of the home, and interest rates can all impact time to sell.
But a recent study by Alliance and Leicester in the UK found FSBO sales were much faster, finding sales by private home- sellers using websites to market their properties took an average two months, while broker- assisted sales took an average three months. But the people that do more research, market their property in as many places as possible and price their home properly can sell their home as quickly as an agent can, " he says. Lawrence. "There are great real estate agents who can sell your property fast, of course- -- but you have to pay. " As for the homeowners who are willing to do the hard work and the buyers who see FSBO as offering better- priced homes, their numbers are, he says growing rapidly. "Our website s traffic has increased exponentially in the last year, " says Mr. He does, concede some homeowners, however who need to sell fast may prefer to go with a real estate broker. "Some may feel the time pressure outweighs the chance to learn and be successful with FSBO, " says Mr. Lawrence. Lawrence is quick to point out the success of the system depends a great deal on how much the homeowner is willing to put in, stressing their services do not replace those of a real estate agent. "The answer lies with the client, not the system.
Their website, now in just its third year of operation, sees more than 5000 unique visitors each day, while property listings have doubled in the last year. "Our clients have sold$ 118 million dollars in real estate using our tools and services, so we know it works. " Mr. You can t really equate our website with a real estate agent, " he cautions. "When using our services the person becomes their own real estate agent, while we are an exposure vehicle as well as a tools provider. " Canada is not the only place where FSBO is a hot ticket. They can price their homes to sell without losing a chunk of their profit in the bargain. In the US, the slumping real estate market has many homeowners choosing FSBO to maximize their equity- by taking the broker s commission out of the equation. FSBO is catching on in the UK as well, with about 90 websites jostling for the attention of private sellers, who now represent 8% of the sellers market, up from 5% last year.
Read more...
The Process Of Looking For Your First Home Is Always Exciting And Fun - Finance and Real Estate Blog:
To choose your first home which you will feel comfortable living in, you need to do the necessary research on your side. Let me share with you some tips when you are looking to buy your first home.
Mexico Has Many Lovely Retirement Havens - Finance and Real Estate Articles:
While there are some people who come to Mexico for a week and end up living here for the next twenty years, most people adopt a more prudent course and do some homework first. Retiring in Mexico is now becoming popular with Europeans also.
Jet- To- Let Is Similar But It Involves Purchasing Overseas Property For Short Term Weekly Or Fortnightly Rental To Tourists - Hilary Crooms about Finance and Real Estate:
Having made the bold and glorious decision to sack the boss and go it alone you are one of the few who have what it takes to succeed. Now that your business is up and running and you re profiting from your efforts, it s time to turn your attentions to investing the profits from your home based business wisely and for maximum gain.