No mention needs to be made of what new horizons the Internet has created, especially in the real estate industry. Whereas old workhorse Multiple Listing Services ticked their way into thousands of real estate offices across the country, now any consumer with a modicum of Internet savvy can pull up new listings for homes right on their own personal computers. To the chagrin of many a real estate broker, however, the Internet offers limitless opportunities to those who wish to sell their homes themselves.

In my world of new home construction, sales and marketing, builders long ago realized that they must do a fair amount of "selling themselves", using not only the Internet, but elaborate signage, expensive model home park presentations, and costly newspaper display advertising, to lure buyers to their communities. And for those buyers who found these builders' homes on their own, the builder could save thousands of dollars in commission outlay. A type of FSBO (for sale by owner) so to speak? You could say that. But builders also realize that not all buyers come by new homes on their own. Elaborate networks of relocation specialists pick up buyers at airports and whisk them around town, giving their new clients the "grand tour" of residential areas. Many builders do not want to miss an opportunity to "move" their homes, even if a commission must be paid. Outside agents who specialize in new home communities can also be a valuable builder asset, bringing repeat business to the table.

The true FSBO opportunities, however, are not those being demonstrated by builders, as we all know. It is the average couple or individual who has the willingness, time, and dedication to try to sell their home on their own. Statistically speaking, FSBOs account for about 15-20% of the re-sale homes sold in the United States, according to the National Association of Realtors. And, of the remaining 80-85%, many homes start out as a FSBO and then become listed by professional real estate agents when the owner wearies of trying to figure out what he's doing wrong. Many real estate agents may malign the idea of selling a home without aid of their industry, but the truth is, the FSBO market has quietly existed and grown without benefit of fanfare and hoopla all these years.

One site proliferating the owner-seller concept is Owners.com, a San Francisco-based firm in existence since 1995, and recently teamed up with America Online. Under a new agreement, Owners.com will make the self-directed buying and selling real estate faster and easier for AOL members, as well as members to AOL.com, CompuServe,Netscape Netcenter, and Digital City. They will also sponsor the Private Homes Sales section of AOL's ClassifiedsPlus directory. By going to keyword "Owners.com," AOL members can access a broad selection of real estate services and content, including advice and linkage to sites designed to educate, simplify and explain the process by which real estate is bought and sold.

Realtor commissions for an average home sale in the U.S. range from $7,000 to $9,000, based on the average home price of $135,000. "Owners who want more control over the transaction are increasingly turning to the Web to reduce or eliminate commission costs, broaden their marketing reach, and more efficiently shop for their next home," according to Hans Koch, chairman of Owners.com. "In 1999, over 1 million American homes are projected to sell FSBO."

Owners.com offers a variety of listing packages, and owners can choose the one that best suits their needs. The "Premier" listing is the most comprehensive package, including expanded search results available to the cyber home shopper, custom taglines, customized yard signs, and an open house "kit" (open house sign, directional signs, and brochure specimen). It also gives the FSBO aficionado a manual for reference and Internet distribution on Yahoo!, E*TRADE, AOL and more. The consumer investment for this package on Owners.com is a mere $139.

Internet search engines will reveal more and more sites such as this to homeowners who wish to sell their homes without agent involvement. With about 25,000 FSBO home listings, Owners.com expects to market more than 200,000 homes this year. But the big question is this: Will this explosive new medium someday eliminate the need for middlemen or drive down the amount of broker commissions in general? According to a July article in The Wall Street Journal, Joelle Tessler reports that until now real estate brokers and agents have been the gate-keepers of information like the MLS listings. The new medium of the Internet, however, is capable of putting this information in the hands of the consumer.

Brokers may have to become more consumer-oriented, and be able to sell owners on their ability to "weed" out potentially unqualified buyers in their representation, but the fact is, not all of homeowners will warm to the idea of doing it all themselves, even with the aid of the Internet. Unless the homeowner has made a steadfast commitment to the personal time, some knowledge of real estate proprieties, and the marketing skills he needs to make this an almost full-time endeavor, he will find the task of selling a home is not as easy as it sometimes sounds.

For those who are willing to pay the personal price mentioned above, however, the idea of going FSBO now has an exciting new venue with the World Wide Web, and sites like Owners.com are a good place to start your research.

Published: October 6, 1999

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Editor's Note: This article reflects the opinions of Dena Kouremetis only and not necessarily the views of this or any other publication, organization or Website owner.