Crisis has always presented opportunity but it has never been this large before! The mammoth crisis that rocked the world and sent the financial markets into a downward spiral was the collapse of the real estate market.
During this catastrophic event, home prices fell to unprecedented levels, leaving numerous homeowners underwater on their home loans. Unemployment skyrocketed to over 10% and lending dried up almost overnight. Numerous homeowners now needed to sell their homes. But how do you sell your home when you owe more than it's worth? Relief in this situation is usually spelled "foreclosure."
Homeowners that had marginal equity in their homes might break even, if only they could just find a buyer that had good enough credit to obtain a loan. Oh, but there's one caveat! The realtor fees. Paying 6% on the sale of the home had never hurt so bad. In fact, it became a deal killer.
For example; If you had a $300,000 home mortgage with no equity and you paid a 6% sales commission to your realtor, then you just lost $18,000 of potential equity. The sales commission now places you underwater and in a short sale position which will further damage your credit.
Because real estate sales had dropped off so dramatically, many realtors were unable or unwilling to negotiate down to fees. Thus, the emergence of a new era - "For Sale by Owner."
Troubled homeowners began to place their own home ads on Internet sites, and now the world could view their local listing, all at a fraction of the cost compared to realtor fees. And guess what? It worked more efficiently than anyone dreamed.
The scary legal ramifications that once detoured a homeowner from attempting to sell their own home was made easy. Websites now provide these do-it-yourself realtors with buy sell agreements, disclosure documents and other legal papers at the click of a mouse. This new era of real estate marketing has taken off with leaps and bounds, and there seems to be no end in sight as new Internet do-it-yourself vendors continue to come to the market.
Real estate agents may not be history, but they sure have some strong competition - the owner of the home!