Real Estate, FSBOs, and Fishing Nets

Posted by Joe Manausa on Monday, June 1st, 2009 at 2:08pm.

I was talking to a good friend of mine yesterday who was asking me about an article in the Tallahassee Real Estate Newsletter that was published last Monday. He said he understood everything except he wanted to know what a "Failed To Sell" measurement was. He had seen the graph and wanted to know what it meant. Simply put, this is the measurement of the people in Tallahassee who tried to sell their home, but failed.

How Can You Possibly Be A FSBO In This Market?

For those of you that do not know, "FSBO" is a term used in the real estate industry for people who are trying to sell their home without a real estate brokerage company. The term "FSBO" stands for "For Sale By Owner." So, I'm sitting here wondering what people are thinking about when they put their home on the market without the benefit of an international marketing effort.

The following real estate graph is the measurement of home sales failure rates in Tallahassee. The results are staggering:

homes-that-failed-to-sell-in-tallahassee

What this graph shows is that the 1 year trend of failed home sellers (people who put their home on the market and went the who marketing period without selling their home) is currently at 81%. That is terrible. Can you imagine needing to sell your home and being told that  if you do what everybody else does, you have a 1 in 5 chance of selling your home?

The Tallahassee real estate market is down over 60% from the height of the market three years ago. Yeah, three years ago you could put a crayon-crafted "for sale" sign in your yard in the morning and have 3 offers before the end of the afternoon. But that was then, this is now.

Home Sellers Need Good Help

For those of you who are detailed oriented, you might notice that the above graph was constructed from data mined from the Tallahassee Board of REALTORS® Multiple Listing Service (MLS). So that means that 81% of people who hired a Tallahassee REALTOR® to sell their home failed to get the home sold during the listing period.

You actually have to hire a great real estate company now. Just putting the house for sale in the Tallahassee MLS is going to result in an 81% failure rate! This is a tough market, and I recommend you getting the best advice available when you decide to sell a home in Tallahassee!

On Another Note - A Fishing Net Invention

My good friend, Rod Presnell, has invented a retractable fishing net. You might recall we had a fishing net naming contest on the Tallahassee Real Estate Blog back in June of last year, and the winning entry was "The Bass Lasso." Please check it out, as Rod has invested a lot of himself, his time, and his money into this remarkable invention. They are being produced now and will be available in a few weeks. You can visit http://mybasslasso.com for a sneak peek at "the only net that belongs in your boat!"

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Joe Manausa is a real estate investor and the Broker and Co-Owner of Joe Manausa Real Estate. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.
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Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

4 Responses to "Real Estate, FSBOs, and Fishing Nets"

Doug wrote: Joe,
That retractable fishing net is a really cool idea. I hope he gets a good "net" income off of his invention. :-)

Posted on Monday, June 1st, 2009 at 8:50pm.

Wait, what? wrote: How do you measure FSBOs? If I'm smart enough to say, "Hm, all the $200K's in my neighborhood are failing to sell," and list my house FSBO at $110K, and it sells in a week.... which of your charts do I hit?

Not trying to be difficult, and I enjoy your posts, just pointing something out.

/ww

Posted on Tuesday, June 2nd, 2009 at 1:58am.

Joe Manausa wrote: Hey WW, I love the feedback. Agree with me, disagree with me .... either way, thanks for chiming in.

Actually, to answer your question you end up on my "sold" chart (graph). That is why we measure both the <a href="http://www.manausa.com/tallahassee-mls/" rel="nofollow">Tallahassee MLS</a> as well as the Leon County Tax rolls for real estate sales in Tallahassee. You would show up as a new sold property ... and that's the point. Not many people are showing up as new solds. They need help! Plus, I think you can do better than $110K :).

- Joe

Posted on Tuesday, June 2nd, 2009 at 2:03am.

Joe Manausa wrote: Ouch. Even bad puns are welcome here Doug.

Posted on Tuesday, June 2nd, 2009 at 2:06am.

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