More depressing housing news came out today that home prices in the nation's largest markets dropped 18% in October from the prior year. The S&P Case Shiller index tracks homes prices in the nation's 20 largest metropolitan areas, and every market experienced a year-over-year price decrease. Phoenix (-32.7%), Las Vegas (-31.7%), San Francisco (-31%) and Miami (-29%) had the largest declines, while Boston (-6%), Denver (-5.2%), Charlotte (-4.4%) and Dallas (-3%) had the smallest.
These sellers probably paid around 6% in real estate commissions to get their home sold, meaning that these folks actually lost 24%. For a typical seller in San Francisco, where the median home price in 2007 was $805,000, he/she would have lost more than $280,000 in just one year ($250K in lost home value and $33K in real estate commissions)!
Having a home lose its value is obviously a tough thing for any home owner to stomach, but sellers really need to think how wise it is to lose another 5-6% in the form of a real estate commission. Especially when studies from Northwestern and Stanford universities each found that "for sale by owner" sellers are as effective as agents in maximizing the sales price of their home.
Here's what some of ForSaleByOwner.com customers recently told us when they sold their home themselves:
"I did with forsalebyowner.com in one month what an real estate contract didn't do in six months...I sold my house for the asking price!!!!" - Lia in Carlisle, PA (sold home Dec. 21, 2008)
"I feel fortunate to have sold the property in such a tough economy. Not having to pay a real estate commission helpped me sell it for a lower price." - Dan in Roscoe, IL (sold home Dec. 15, 2008)
"We sold our house through your advertising only and no real estate agent was needed. Thank you for this service!!!" - Steven and Vicki in Vinalhaven, ME (sold home Dec. 15, 2008)
http://www.forsalebyowner.com
Tuesday, December 30, 2008
Monday, December 15, 2008
What's Ahead in 2009 For Real Estate?
It's pretty safe to say that 2008 will be remembered as a very painful year in real estate. Headlines have screamed about declines in home prices and fewer homes being sold, and many people follow the real estate market closer than they do their favorite sports team.
Today ForSaleByOwner.com issued its 2009 Real Estate Predictions where, among other things, we are forecasting a continued slide in home sales & prices, fewer people in the real estate agent & broker profession, an increase in real estate commission rates, and increased competition within the industry.
We also predict that next year we're going to see a "tipping point" where, for the first time ever, more people will be finding their next home by seeing it first on the Internet... instead of finding out about the home from a real estate agent. Industry stats for 2008 show that 32% of buyers found their home on the Internet (up from 2% in 1997), and 34% found it because a real estate agent showed the home to them (down from 50% in 1997). We think that 2009 will be the year where the industry's own statistics show that the Internet is more effective in helping people find the homes they want to buy.
We got other predictions as well. Check them out here.
http://www.forsalebyowner.com
Today ForSaleByOwner.com issued its 2009 Real Estate Predictions where, among other things, we are forecasting a continued slide in home sales & prices, fewer people in the real estate agent & broker profession, an increase in real estate commission rates, and increased competition within the industry.
We also predict that next year we're going to see a "tipping point" where, for the first time ever, more people will be finding their next home by seeing it first on the Internet... instead of finding out about the home from a real estate agent. Industry stats for 2008 show that 32% of buyers found their home on the Internet (up from 2% in 1997), and 34% found it because a real estate agent showed the home to them (down from 50% in 1997). We think that 2009 will be the year where the industry's own statistics show that the Internet is more effective in helping people find the homes they want to buy.
We got other predictions as well. Check them out here.
http://www.forsalebyowner.com
Tuesday, December 2, 2008
A Real Estate Agent Speaks the Truth
I came across this interesting article today, and was very impressed with the honesty and candor of the ReMax real estate agent who authored it. Usually it's a financial adviser or someone from the "for sale by owner" crowd who advises people to sell their home without an agent and save thousands in commissions (studies from Northwestern & Stanford universities say the same thing, by the way).
Read what this agent has to say. I'll let his words do the talking that, especially in this weak housing market, using a service like ForSaleByOwner.com might be the best option for home sellers.
Read what this agent has to say. I'll let his words do the talking that, especially in this weak housing market, using a service like ForSaleByOwner.com might be the best option for home sellers.
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