Private Sales Earn Growing Share ... The Future for FSBO looking bright!

July 30, 2005 – Moncton, NB: It’s fast becoming the way that homeowners are choosing to sell their homes. According to the Canadian Real Estate Association, 18 percent of real estate transactions were the result of private sales in 2002 and in 2004 it grew to 22 per cent.

This year the association is no longer releasing private sale statistics. But with the growing popularity of real estate marketing companies like Property Guys, that figure will likely rise steadily as homeowners become more familiar and confident in selling their own homes.

With someone to guide and support them, homeowners can successfully sell their own homes. And the money they save in real estate commissions amounts to thousands of dollars.

“People want to keep their money. They don’t want to pay 6 per cent commission plus GST,” said Property Guys owner Neal Clemmensen. “We have to think about how much that eats away at your equity. On a $170,000 home, the commission and GST is about $11,000 and if you have $50,000 equity then that $11,000 is actually 22 per cent of your money, not six per cent.”

And there is a lot to do with the money you save.

“You can pay for some of your child’s university education with the money you save from not paying that commission,” Clemmensen said. “It’s about keeping money in your own pocket, about something as basic as buying yourself a car, or buying one for your real estate agent.”

Property Guys provides clients with the support they need to sell their homes privately, including national marketing exposure, signage, web listings, and legal forms.

According to Clemmensen, the marketing exposure that homeowners receive is invaluable to the success of their sale.

“Over 70 per cent of buying research is on the Internet now,” Clemmensen said. “Homes for sale are listed on the Property Guys website. We take lots of photos inside and out. People don’t have to traipse through 30 homes with an agent. They can do that in the comfort of their own home without any pressure.

“People can decide if they like a home and the seller doesn’t have to field tons of enquiries like they would with a store-bought sign out on their front lawn, or put up with lots of people going through their house.”

Private sales also offer a more personal experience for both buyer and seller. Sellers can be in control of showings and can enjoy the convenience of having that control.

Buyers can ask questions directly of the sellers without go between realtors or paper exchanges. It saves time and often frustration as agents and clients play phone tag.

Over half of the homes that have been listed with Property Guys since April have been sold.

There is currently about 15 listings for viewing on the website at PropertyGuys.com. Listings are for Brandon and an approximately 60-mile radius including Killarney, Boissevain, Souris, Russell, Neepawa, Minnedosa, and other communities.

Property Guys websites across the country are very popular, with five million hits a month nationwide.

“It’s a great thing for people that are transferring to other cities and are looking for homes,” said Clemmensen.

“When buyers live in Regina, Toronto, or Vancouver, they can’t see that store-bought sign on your lawn. But if they are looking on the Internet, your home is visible.”

Clemmensen already owns two other businesses in Brandon, one of which is changing ownership to his daughter at the end of this month.

So where one is lost, another is gained.

“I don’t have a retirement plan,” Clemmensen said. “This is something I can long-term. I’m a businessman and I think this real estate system is an up-and-coming business. Private home sales are growing so rapidly and as people gain confidence in selling their homes is just going to snowball. It’s already altered the industry somewhat and it will continue to do that.”

Offering both residential listings, which includes a homebuilders package and a developers package, and commercial listings, Property Guys has been operating in Canada since 1998 and is the only national “for sale by owner” real estate marketing system.

The company remained local in New Brunswick until 2002 when it hit the franchise market and has been steadily gaining success after being carefully monitored and refined. Property Guys is Canada’s leading private sale real estate marketing company with 50 franchises across Canada and growing.

They have been recognized as one of the top 25 most successful canadian franchise systems by Canadian Franchise magazine.

Carolyn Stuart is the Sun’s business columnist. She can be reached at jstuart@inethome.ca.