interesting comment about Real Estate in Canada I found on Benson Wong´s Blog when surfing the internet.
Looks like the site indexes only FSBO (For Sale by Owner — fizzbo) properties. I don’t see how it will have a significant impact on real estate in Canada. I for one would always use a realtor (that I trust) when buying or selling a home.
Here’s my view on FSBO, and much of this opinion is influenced by the book Stumbling on Happiness. For the most part people generally suck at predicting what would make us happy in the future. The result is we have expectations that are often out of sync with reality.
Why do a lot of FSBOs wind up, and are happier switching to a realtor? Because beforehand they underestimate how hard it is to sell a home and overestimate how happy they will be saving the commissions. After they list, expectations change, and a lot of FSBOs wouldn’t mind paying somebody a commission to do all work for them. Check out Stumbling on Happiness, it gives a lot of great examples of how we suck at estimating happiness and how we’ll fall into the same trap over and over again.
Will FSBOs go away? Probably not, actually I expect lots more FSBOs in the future. Not because it’s the next great thing, but because a lot of people will make the same bad predictions on happiness: going FSBO would make them happier. Some will luck out, a lot won’t, and there will always be a realtor around to help those who don’t.