For Sale By Owner

It is no exaggeration to say that Internet marketing has revolutionized the real estate business in U.S. In particular the fever of home buying caught up with the Americans during the years 2000 to 2005, when the federal and State governments encouraged provision of homes to the homeless citizens on one side. On the other, Government sponsored agencies like Freddie Mac and Fannie Mae under guidance from Department of Housing and Urban Development (HUD) and FHA – Federal Housing Administration issued home loans and guarantees for home loans, turning a blind eye on the credit history of the borrower on self-declaration. The mania of home buying spread like wild fire and prime lending and sub-prime lending institutions as well as home owners had a field day. The need for supply of fast and accurate information on real estate searches was very much felt. The agents and brokers of real estate scattered all over the country joined hands through their associations in organizing the Multiple Listing Services website on Internet. This enabled to pool the resources of realtors together and the real estate agents and brokers were allowed to enlist the properties they have access to, in MLS.

Today, thanks to the technological developments in website promotion, a searcher of property online can forget the hassles of yester years by going in person to the properties to inspect the merits and demerits of the same, apply for mortgage loans with collection of supporting documentary proof etc. All these tasks can be carried out, sitting at home, by clicking the mouse. According to a latest study, nearly 70% of home shoppers do their preliminary search only online.

Properties for sale by owners themselves (FSBO) are also to be advertised properly to attract prospective leads for buying. Home owners resort to such sales to avoid payment of agent’s commission running to thousands of dollars. This payment makes a heavy cut in their sale proceeds – a minimum of 6% amounting to $12,000 on a property priced at $200,000. While the boom in real estate selling was in vogue, the home owners were contended happily without the need for spending much on advertisement. But not any more. Since the market has turned out to be a Buyers’ market currently, the home-owner sellers of FSBO also have to resort to advertising on Internet. Fortunately for them also there is a way out. In some areas of U.S., MLS listing by owners is allowed or at best they can engage discount brokers on a flat fee to list their respective property under MLS classified under FSBO. Considering the amount they have to shell out otherwise, this flat fee arrangement is comparatively less and affordable.