FSBOs’ Impact on Local Housing Markets

Blomquist: “These iBuyer purchases also will create more turnover in the market, with more sales happening, but also will likely have a bit of a drag effect on home prices since the purchases by the iBuyers are often lower than what the property would sell for if listed on the MLS.”

IRVINE, CA—A high percentage of off-market for-sale-by-owner transactions means the traditional gatekeepers of real estate listings in the market lose some of their credibility as gatekeepers, ATTOM Data Solutions SVP Daren Blomquist tells GlobeSt.com. A recent report from the firm states that only 8% of home sales in 2016 were off-market FSBOs, according to new data from the National Association of Realtors, but the picture is markedly different in some local markets such as Phoenix (25% off-market sales in 2016) and Dallas (14% off-market sales in 2016) where the so-called iBuyers and other MLS disrupters are concentrating their efforts. We spoke with Blomquist about why these disruptors are focusing on these particular markets and the impact a high percentage of off-market FSBOs has on these markets and the surrounding areas.

GlobeSt.com: Why are so-called iBuyers and other MLS disruptors concentrating their efforts in certain local markets such as Phoenix and Dallas, where off-market FSBOs were strong in 2016?