Hi Kelly.  I bet it was just a hot patch for FSBO's.  They are few and far between down here in Naperville.

I hope all is well,

Ken

Hi Kel, I haven't seen too many around here although it's funny when someone puts up their FSBO next to the person that hired a realtor!

Kelly - intriguing trend. I think you may be right. We seem to have fewer around, but maybe I have just not been noticing as much. I am seeing many more For Rent signs on houses.

Jeff

Kelly, I think it's a combination of desperation because owners feel as if they have no control and are running short on options and quite possibly a sign of the poor service other sellers are receiving because their agents are no longer full time working real estate. I would fsbo too if the only thing my agent did was stick a sign in the yard and post it on craigslist!

Kelly, we have a lot of for sale signs in certain area's and then normal in some area's. I have seen this happen even in a good market. My neighborhood rarely turns over, yet one year 5 people sold. I hope it's not a sign of the times and just people in that radius needing to move.

KEN: A few months ago you would have had a hard time finding a for sale by owner sign in Lake Zurich. I'll be keeping my eye on this one.

LANITA: One seller went fsbo, then listed with a real estate agent, then went fsbo again...try and figure that one out. I'll probably see a real estate agent's sign again in a few days.

JEFF: Many sellers are also listing their homes for rent on the mls, but there aren't that many for rent signs around town - as it appears their primary goal is to get the home sold and only rent as a last resort.

COLLEEN: Most of the signs I've seen have not listed with a real estate agent previously, they went fsbo from the start. I've spoken to so many potential sellers this year who do not have any equity left to pay all their closing costs for a variety of reasons: zero down loans, they refinanced to pull out money for other reasons, health issues, job loss, and of course the decline in property value plays a part as well.

MISSY: In my neighborhood a few years ago nearly everyone tried fsbo. Now nearly everyone hires a real estate agent because it takes our expertise to get the job done. In fact, the market was so hot a few years ago that fsbo signs were all over the place throughout Lake Zurich. Then fsbos almost disappeared when the market started to decline and homes became harder to sell. Our market is still in decline (many price reductions every day and very long market times), yet the fsbos have reappeared. I hope it's not a sign of the times.

Kelly...I agree that it is probably the worst possible time to try to sell by owner but I think some sellers still think they will actually save money by doing so.  In my opinion, they need all of the exposure they can get to get and market expertise by having a professional Realtor on their side, like you say.....especially in this market!

Kelly - Gove those sellers 4-6 weeks, they'll be looking to list with an agent!

KELLY - This is probably the worst time in recent years to try and sell a home on your own.  I agree with you that desperation is setting in.  Unfortunately disappointment is sure to follow for these sellers in the near future.

DEBRA: Absolutely!

CAROL: Maybe yes, maybe no...if they are out of money, they may not have any choice. It's a terrible situation to be in.

ADAM: It is harder than ever and they are bound to be disappointed. Buyers will still deduct the perceived commission "savings" from any starting offer, just as they always have, and bargain hard from there. In today's market, buyers are really turning the screws on desperate sellers because they (the buyers) are in the driver's seat for the first time in a long time and have many other homes to choose from. The unrepresented seller is in the most vulnerable position.

Kelly - I think they are concerned about the price of our commission. If I was not an agent - I would not sell my home on my own - there are too many issues to consider. Most people don't realize that.

If they were smart they would use the best Lake Zurich Realtor in Town.... Kelly!  Hungry for breakfast tomorrow?

Kelly, You know, it's a double-edged sword--they can't afford to pay an agent if their home's value has not increased enough and their equity not enough to cover it.  Then again, they truly can't afford NOT to use an agent in THIS market!  I have a client like that right now--they have no equity in their home and HAVE to move--we're doing the best that we can but, we really don't want them to have to go into a short sale situation.  I do feel for these sellers but, I do believe that it's FAR smarter to have an agent to assist you with your financials and get it sold quicker than to have them hang onto the home for a very long time trying to sell it themselves.  Great post Kelly!

SHARON: I think you are right...commission is the only expense of selling that they don't have to pay, if they are able to sell it themselves. They worry that they simply can't afford to hire a professional, even though they really need to.

JUDY: I can't on Friday, but let's pick a day next week! :)

DEBE: Many sellers are doing everything they can to avoid short sale or foreclosure, and I honestly don't blame them for trying to do so. Saving money is at the top of nearly everyone's priority list right now. But you and I both know that their chances for selling at all are reduced when they choose to go it alone. It's a tough position to be in.

Kelly, it's sort of goofy, because when they list it finally list, they wind up paying an agent and ususally lowering the price, too!  And they probably attract more attention from agents looking for listings than buyers looking for homes.

The downside of a For Sale By Owner in my area is usually a realtor will represent the Buyer.  You know the rest.  The Buyer's agent ends up doing all the Seller's work also as far as paperwork, etc.  If I bring a Buyer to the table on a FSBO, I negotiate with the Seller to possibly represent both of them for maybe a 4% commission if at all possible.  At least you know everything is handled correctly.  And you get paid something for your services.

Kelly,

Sounds like a real marketing opportunity for you. I imagine that one of the key issues is the feeling that they can get more for their homes if they sell it themselves because they know the true value and can communicate this to the public. Of course, this is not a realistic position, but I'm sure this is prevalent.

Steve

PATRICIA: And because they didn't price it properly in the beginning they wasted a lot of time!

ROXANNE: The seller doesn't know what they don't know, and never seem to have all the proper paperwork.

STEVE: They don't understand how important marketing is, and usually say too much.

Kelly,  I have been noticing more FSOBs in our area also.    I think people think it's easy - and you're right the professionals are having hard enough time so I don't understand how the thought process goes for FSBOs.  I guess we make it look a lot easier than it really is.  And I had not seen your "20 questions" - Thanks!

Kathy Carson, RE/MAX 1st Olympic, Lynchburg, VA

KATHY: Maybe they last bought and sold in 2004 or 2005 when there were multiple offers and homes sold in just days or weeks. They don't understand the real estate market in 2008, but they soon will... 

Hi Kelly,  Crazy stuff like that always gets me thinking....could it be that no agent wanted the listing because they wanted more than their properties were worth???? Wouldn't that be something???

SHANNON: That could be the case...