Realtors lose millions to FSBO site.
FsboMadison, a for sale by owner real estate site in Wisconsin, is starting to scare realtors. The site listed about 2,000 homes in 2005 and said that about 72 percent of its listings sell. If the average sale of those homes was $200,000, it would result in real estate commissions of $17.3 million (6 percent commission is standard for realtors). FsboMadison, which charges just $150 to list a home, collected about $300,000.
How did the site owners get the idea? Like others, they set out to solve an issue that was a personal hassle.
In 1997 Ms. Murphy and her husband bought a house together and she decided to sell her place without a real estate agent. But it was a bother. “You’d have to guess. Do we put a $120 ad in the paper this weekend?” Her husband suggested she start a Web site.
Interesting side note: They only accept payment by personal check so people don’t list their house on a whim. [Signal vs. Noise]