For generations, Americans have relied on realtors for help buying a home. Realtors have traditionally had more access than the public to home listings through databases such as the Multiple Listing Service (MLS). Also, legal aspects have given realtors an advantage in the housing market due to their understanding of buying and selling legalities with titles and lien searches.
But that landscape is rapidly changing.
Over the past decade, it’s become more and more common for homeowners to sell their own properties. The “For Sale By Owner” (or “FISBO,” as it’s often pronounced) movement has been gaining popularity. In fact, national statistics indicate a 40% increase in FSBO sales between 2006 and 2008, from 20% of the market to 28%.
This shift in the real estate market is due primarily to the Internet, which now allows anyone to search the MLS. This has made it possible for homeowners to “price” their own properties—and to then list them on databases such as the MLS.
However, there are setbacks. FISBO has the potential to be a pain for many home buyers. In fact, more buyers than ever are seeking advice on how to buy a home without a realtor.
The good news is that, although some of the rules of how to buy a house may be changing, the fundamentals of the home-buying game have not.
Buyers can still rely on trusted realtors—and mortgage companies—for help buying a house. In fact, some realtors are beginning to specialize only in helping buyers. At the same time, some mortgage companies offer assistance and advice on how to purchase a home for their clients who are looking to represent themselves without a realtor.
The changing landscape of the housing market doesn’t have to be intimidating. If you’re wondering what the new rules are for how to buy a house, there are plenty of resources—from traditional realtors to a mortgage service online—that can offer help buying a home.
