I'm so sick of the National Association of Realtors. Today, it's not because of the $1.8 billion lawsuit they recently lost because their commission practices were deemed unfair and the trade group was found liable for conspiracy to inflate rates. And it's not because of the recent sexual harassment allegations. Today, I'm sick of the NAR feeding the public misleading statistics.
The National Association of Realtors (NAR) is the second largest spending lobbying group in Washington! They spend more than Amazon and Meta combined! Needless to say they are spending A LOT of money (more than $33 Million so far this year and more than $81 Million in 2022!) to get their policies and procedures green-lighted in Washington, DC. The statistic that is sticking in my craw today is this one:
When an aging parent decides it's time to sell the family home and move into perhaps an assisted living situation or a multigenerational home, they sometimes sell the family home to a child. They often sell the family home to a child for $1.00 as a technicality. More often than not, no real estate agents are involved in this type of transaction, making it technically a "For Sale By Owner". So goes on public record a For Sale By Owner transaction for $1.00. The National Association of Realtors has an interest in pushing out the message that For Sale By Onwer (FSBO) sales sell for less than agent-assisted homes. Because if FSBOs sold for just as much (if not more) than agent-assisted homes, why would anyone use an agent??? Do you think averaging in all of these non-arms length transactions between family members for minimal payment has an effect of the median price of "For Sale By Owner" transactions? You bet it does!!! In fact, a very recent study (independent of the NAR) found that For Sale By Owners actually sell for 1-4% MORE than agent-assisted homes! The moral of the story is please take all statistics and information from the troubled NAR with a HEAVY grain of salt. They are in the business of supporting their Realtor members and this includes discrediting any methods that pose a threat to their livelihood, like For Sale By Owner.
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AuthorField Notes from the FSBO Sherpa. Helping guide motivated, DIY homeowners through the For Sale By Owner journey, one real estate transaction at a time. Archives
December 2023
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