Facing a hot real estate market and growing base of do-it-yourself consumers, many REALTORS® are competing less with one another and more with consumers buying and selling on their own. Below are common questions that prospective clients often ask when considering this option and responses to consider.

1. Are more consumers trying to sell their homes on their own these days?

No, it just seems that way. When mortgage rates are low and the housing market is active, home sellers view the process as easy and become more likely to sell on their own. Conversely, when mortgage rates are high and the market cools, those same consumers turn to experienced REALTORS®. In any market, it's proven that home sellers represented by a REALTOR® achieve a 20 percent higher home value statewide than those sold by owners.

2. Why use a REALTOR® when just sticking a sign in the ground will attract multiple buyers?

In a hot market, can a sign attract buyers? Sure. However, unless your home is priced properly and you can successfully write a solid contract, you will leave money on the table or fail to sell your home. REALTORS® are intimately familiar with real estate law and the closing process. When you chose to work with an experienced professional, you are making a solid investment that is usually repaid with a higher sale price and lower legal liability.

3. REALTORS® are great for people who want to avoid the hassle, but I'm an educated, do-it-yourselfer. What harm is there in cutting out the middleman?

Most sellers who begin the process without representation by a REALTOR® end up by listing in the end, as evidenced by a recent National Association of REALTORS® survey that found only 11 percent of sellers actually sell on their own. Real estate transactions are fraught with potential liability and it's easy for consumers to stumble into legal trouble. A seller that overlooks even one required form or legally mandated disclosure could face a lengthy and expensive buyer lawsuit after the transaction closes. Working with a REALTOR® ensures every part of the transaction is compliant with real estate law and can help you avoid the many pitfalls possible between the initial sales agreement and closing on the home.

4. What are the limitations involved in selling my own home?

• Valuation - Research shows that, on average, homes sold by their owners sell at prices 20 percent lower than homes sold by REALTORS®. Given that cost is a primary reason most consumers sell their own home, this statistic reveals they often take on that additional hassle and risk while actually decreasing their earnings.
• Inaccurate pricing - Like many homeowners, unrepresented sellers tend to believe their home is worth more than comparable homes in the same neighborhood. Unfortunately, this leads to their home staying on the market longer and eventually achieving a lower valuation anyway. REALTORS® have expertise in pricing homes for sale and will ensure your home is sold at the best price, quickly and with minimum hassle.
• Access to the MLS - By far the largest and most accurate source of information regarding properties for sale, the Multiple Listing Service (MLS) is the primary information source home buyers consult when represented by a REALTOR®. Thus, unrepresented sellers often are unable to reach this large group of prospective buyers.
• Intimidated buyers - Research shows that potential buyers spend less time in a home if the owner is present. They often feel uncomfortable discussing their opinions of the property if the owner is present and are less inclined to make an offer if they know they'll be negotiating directly with the seller. Thus, the pool of prospective buyers is limited further.

Austin Board of REALTORS® releases December 2009 and year-end real estate statistics

January 20, 2010 - According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin area home sales in December 2009 was 1,373, up five percent from the same month in 2008. The median price of real estate in the Austin area also showed an increase, up six percent from December 2008 to $194,000.

“We saw dramatic increases in sales volume in October and November 2009, which were presumably related to the original deadline for the first-time homebuyer tax credit,” explained John Horton, 2010 Chairman of the Austin Board of REALTORS®. “However, increases in sales volume beyond November and figures that have improved steadily throughout the year indicate that, while some demand was driven by the tax credit deadline, a sustainable recovery is also underway in the real estate market.”

Year-end real estate totals for 2009 showed improvement in sales volume and stability in home prices over the course of the year. In 2009, 19,005 homes were sold in the Austin area, a six percent decrease from 2008. The median price for the region in 2009 was $188,480, down one percent from 2008. The six percent decline in year-end home sales for Central Texas marks a significant improvement when compared to the double-digit decreases in home sales seen in the first quarter of 2009.

Mr. Horton summarized, “We’re seeing encouraging news from many sources that 2010 will be an improvement over 2009, and I think this report is one more indicator the outlook is beginning to brighten. As always, however, I urge consumers to base their decisions about buying and selling real estate on their own situation and goals. Talk to your Austin REALTOR® for advice on whether 2010 should be your year to buy a home or move up.”

December 2009 Statistics

■$358,863,756 – Total dollar volume of single-family properties sold, an 11 percent increase from December 2008.

■$194,000 – Median price for single-family homes, a six percent increase from December 2008.

■1,373 – Single-family homes sold, a five percent increase from December 2008.

■8,079 – Active single-family home listings on the market, a five percent decrease from December 2008.


2009 Year-End Totals
■$4,612,315,236 – Total dollar volume of single-family properties sold, a nine percent decrease from 2008.

■$188,480 – Median price for single-family homes, a one percent decrease from 2008.

■19,005 – Single-family homes sold, a six percent decrease from 2008.

■9,335 – Active single-family home listings on the market, a five percent decrease from 2008.

Austin Board of REALTORS® releases November 2009 real estate statistics

December 21, 2009 - According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin-area home sales continues to surge, increasing 58 percent in November 2009 compared to November 2008.

“This is the largest increase in year-over-year homes sales the Austin market has seen in more than ten years,” explained Jay Gohil, chairman of the Austin Board of REALTORS®.

In November 2009, there were a total of 1,576 home sales, contributing $377,603,296 to the local economy. The median home price for Austin in November 2009 was $179,000, a two percent decrease from the same month the prior year.

“The combination of steady home prices with increasing demand is very encouraging for the Central Texas real estate market,” said Gohil.

In the face of increasing sales volume, the Austin real estate market is seeing a decrease in home inventory. The Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market, meaning demand for homes is evenly balanced with inventory of homes for sale. At approximately 5.4 months of inventory for November 2009, demand for homes in the Austin real estate market is slightly outpacing inventory.

November 2009 Statistics

* $377,603,296 – Total dollar volume of single-family properties sold, a 62 percent increase from November 2008.
* $179,000 – Median price for single-family homes, a two percent decrease from November 2008.
* 1,576 – Single-family homes sold, a 58 percent increase from November 2008.

Austin Board of REALTORS® releases October 2009 real estate statistics

November 18, 2009 - According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of home sales in the Austin-area real estate market surged in October 2009, potentially related to the tax credit for first-time homebuyers.

In October 2009, 1,823 homes were sold, a 38 percent increase from 1,322 in October 2008. The median price of Austin homes in October 2009 was $182,000, a five percent decrease from the same month the prior year.

In the early part of this year, home sales volume in Austin was down significantly compared to 2008. However, that gap in sales volume began to close in July 2009 when the local market reached a volume similar to the same month in the year prior.

“Sales volume like this is similar to what we saw in 2005, which is an encouraging sign,” said Jay Gohil, chairman of the Austin Board of REALTORS®. “It’s possible some of this surge in volume was related to the original deadline for the first-time homebuyer tax credit, so it’s good for our market that the tax credit was both extended until April and expanded to include more current and prospective homeowners.”

October 2009 Statistics
* $434,975,092 - Total dollar volume of single-family homes sold, a 35 percent increase from one year ago.
* $182,000 - Median price for single-family homes, a five percent decrease from October 2008.
* 1,823 – Single-family homes sold, up 38 percent from the same time last year.


The Austin Board of REALTORS® is a non-profit, voluntary organization representing more than 8,000 licensed REALTORS® in Central Texas.

Central Texas existing home-sales soared 38 percent in October, as buyers took advantage of a federal tax credit for first-time homeowners.

Though home sales also were up in September, by 6 percent compared to the same month last year, the Austin Board of Realtors said that the region hasn’t had an increase as big as October’s since March 2005, when sales also rose 38 percent.

The board reported that 1,823 homes were sold compared with 1,322 in October 2008. The median price was $182,000, down 5 percent from the previous October.

The tax credit that has been spurring sales locally and nationally was set to expire Nov. 30, but recently was extended through April 30 and a provision was added for a credit of up to $6,500 for qualified move-up and repeat home buyers.

“Sales volume like this is similar to what we saw in 2005, which is an encouraging sign,” said Jay Gohil, chairman of the Austin Board of Realtors. “It’s possible some of this surge in volume was related to the original (Nov. 30) deadline for the first-time homebuyer tax credit, so it’s good for our market that the tax credit was both extended until April and expanded to include more current and prospective homeowners.”

The number of homes listed for sale, 8,947, was down 10 percent from a year ago. And pending sales were up 47 percent, with 1,811 contracts in the pipeline to close.

From January through October, area home sales were down 11 percent, and the median price was down 1 percent, to $189,000, the board reported.

Article by Shonda Novak
Austin American Statesman
Wednesday, November 18, 2009, 03:38 PM