PropertySold Prices Soar Past National Stats as Sales Hit $80 Million

The flourishing ‘For Sale by Owner’ real estate market is set to outpace traditional agent-assisted sales, as purchase prices rocket past the national average.

The do-it-yourself approach to home sales is becoming increasingly popular in Canada. FSBO, as it is known, eliminates real estate agents from the sale of homes, allowing homeowners to pocket what typically amounts to thousands in commission fees.

However, commission fees are not the only savings homeowners are pocketing.

Homes on PropertySold.ca, one of Canada’s leading ‘For Sale by Owner’ real estate listings sites, are also commanding prices far higher than the national average, as total sales reached $80 million this month.

In addition to saving homeowners thousands in agent fees, recent statistics show average sales on PropertySold beat out national figures by more than 13 per cent.

According to the Canadian Real Estate Association, the average sale price of homes across Canada is projected at $303,400 for 2007, well up from last year’s average of $276,959.

PropertySold homes, however, are now fetching an average $345,000 — significantly higher than the national, agent-assisted average price — and a big boost to the customer’s bottom line.

Michael Lawrence, President of PropertySold, says the consistent success of FSBO, and the tremendous savings for homeowners, are what spurs the industry forward.

“The buzz of “For Sale By Owner” as a keyword is definitely a growing phenomenon, both among consumers and the media,” he says. “As more people are successful selling, our industry stands to grow since we are really about saving people money.”

He attributes the sales successes to careful research and planning by homeowners, noting the savings in commission fees are usually well worth the extra legwork.

“Location, pricing of the home, and interest rates can all impact how quickly a property sells,”he points out. “The people that do more research, market their property in as many places as possible and price their home properly can sell their home as quickly as an agent can.”

The $80 million milestone is proof the system works, he says. In just its third year of existence, PropertySold.ca now counts more than 700 active listings across Canada, attracting some 5700 visitors daily.