by Jeanette Joy Fisher

Regardless of whether the real estate market is going up or down, there will always be sellers who try to sell their homes themselves. Although they're often seen as the bane of real estate agents, the fact is that most FSBOs (For Sale By Owners) aren't really a threat to brokers, and the statistics bear that out.

In fact, the National Association of Realtors (NAR) recently reported that 85% of all American homes were sold through a real estate agent in 2005. Lest you think even that's a troubling figure, take into account that on 11% were actually sold completely by FSBOs. Another one percent originally listed with an agent but ended up selling it themselves, another one percent sold their homes to a company that buys homes, and the last two percent were sold in various other ways. 

But wait, you may say, what about the Internet? Hasn't that helped FSBOs in their never-ending quest to avoid having to list their homes? Interestingly, the advent of the Internet hasn't seen an increase in the number of homes being sold by FSBOs. For instance, in 1995, before the Internet had become the huge phenomenon it is today, NAR statistics showed that 81% of all American homes were sold by agents. However, the same percentage, 15%, were sold by FSBOs that year, with two percent sold to home buying firms and another two percent in the miscellaneous category. So much for real estate industry fears that the Internet would completely do away agents and brokers, or at the very least, to reduce their role to little more than helping with paperwork!

The reason that even the mighty Internet didn't eliminate the need for professional real estate help is due to the sometimes complex nature of selling a home. Homes aren't an easily-disposable piece of merchandise. Each transaction is uniquely individual and requires different handling. Couple that with the fact that a home is generally the biggest single purchase a person will make during their lifetime, and the need for a professional person to guide them through the maze of negotiations, paperwork, and documentation becomes even more important.

The question among many agents and brokers is: As the market slows and prices begin to decline in many areas of the country, will the number of FSBOs increase? It's possible that the number of FSBO homes on the market may increase, but that doesn't necessarily translate to FSBO sales, which is actually the figure that is most important to consider. Homeowners may try to save some money by not listing their homes with brokers as the market declines, a sizable majority of buyers will still insist on using an agent to consummate a sale. Whether that involves asking the seller to list the home or employing a buyer's agent, the fact remains that a real estate broker will still be involved in the sale in some capacity.

So, before you panic about a flood of FSBOs hitting the market, remember that the historic statistics are in your favor. It's never been easy to sell a home, and it can be a daunting task, both financially and psychologically, on both sides of the transaction. That means that having professional help will always be a large part of the real estate sales process, whether the market is going up or down.