Owner has 4-6% of all US monthly listings for sale

Based on new research by Zillow over the past three years, For Sale By Owner (FSBO) accounted for 4-6% of property listings nationwide, reaching approximately 63,000 homes for sale in September 2021. The search also found that FSBOs are most common in rural areas and are generally cheaper.

“Our research shows that homes that owners directly market are a small but essential part of the housing ecosystem,” said Alexander Lee, an economist at Zillow. “We’re seeing lower-income rural sellers using these types of ads more frequently. Demographics who seem to value the flexibility to sell their homes on their terms.”

The research found that 24% of rural providers had not used an agent in 2021, compared to 16% of suburban providers and 20% of urban providers. In addition, FSBO prices in all markets are 18% lower than real estate represented by brokers. This trend is likely due to the location and size of the home rather than selling the home at a discount. The average list price for an FSBO home is $ 292,810. The average price of a home listed on a sales agent is $ 355,777.

FSBOs can be found in every state in the country, offering an option for some buyers looking for a home at a lower price. For example, in states like New York, Illinois, and Montana, FSBOs are 19-25% cheaper than non-FSBO real estate. The states with the largest proportion of FSBO owners are concentrated in the Midwest and South. FSBOs make up at least 10% of all home sales in Iowa, Mississippi, Nebraska, Kentucky, Arkansas, Oklahoma, and West Virginia homeowners.

The data shows that low-income homeowners are more likely to sell their property directly. For example, a family making less than $ 50,000 a year is almost twice as likely to sell a home without a realtor as a family making more than six-figure amounts. About a quarter (24%) of sellers making less than $ 50,000 have sold their homes without the help of a realtor in the past three years.

Although more CSOs are typically found in rural areas, it is still possible to obtain FSVOs at lower prices than properties traditionally listed in some large metropolitan areas of the US population. In 23 of the top 50 cities, FSBO prices are lower than those on the agent lists. Upon closer inspection of these numbers, research shows that the biggest difference in home prices is in Indianapolis, St. Louis, Atlanta, and San Antonio – FSBOs in these markets were valued 10% cheaper than the traditionally listed property markets.

Research has also shown that sellers are less likely to report colors as brokers due to structural income inequalities, and thus the value and type of home. On average, 79% of black sellers and 76% of Latinx sellers say that in the past three years they have hired a realtor to help them sell their home. White salespeople reported using an agent 83% of the time.

FSBOs are generally used on all types of homes but are popular with sellers of smaller types of homes such as townhouses, townhouses, maisonettes, triplexes, RVs, and prefabricated houses.

The constant and constant prevalence of FSBO listings underscores the importance of this option as one of many in today’s real estate market.

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