|
 FSBO Revolution, Inc began as a research project in 2003. A group of people (including builders, architects, mortgage bankers, financial planners, financial consultants, Realtors, title company owners and Credit Union representatives came together to determine the viability of a non-traditional Real Estate brokerage.
This group studied and researched the consumer of Real Estate brokerage services. It became readily apparent that the consumer was dissatisfied with the existing infrastructure of the Real Estate brokerage industry. Most consumers felt that they were not receiving services which justified the enormous commission expense involved in the typical Real Estate transaction.
The percentage of home sellers attempting to sell their property as a FSBO had grown to 15 to 20% of the market. The National Association of Realtors has predicted this percentage will grow to almost 50% in the next 10 years. Clearly the home selling public was trying to lower or eliminate the transactional cost of selling a home. Those home sellers marketing their property without the aid of a traditional Real Estate company had 3 major concerns:
-
Properly pricing the property
-
How to competently and accurately complete all the paperwork necessary for a Real Estate transaction
-
What steps to take in order to make the property appealing to the marketplace
The FSBO Revolution, Inc research also studied how technology was impacting the Real Estate industry. One of the most powerful trends in Real Estate is the useage of the Internet by prospective buyers in their search for Real Estate.
 In 1997 only 2% of all prospective buyers began their property search on the Internet. In 2006, that percentage has jumped to 81% and it’s climbing every month. Technology and the Internet are assembling buyers in a very reachable and communicable space – The Internet search engines. The proper use of these powerful search engines is contributing to the success of business models which recognize this important trend.
It is the customer who ultimately determines the success of any business model. It was clear that the consumer was ready for a more efficient and cost effective Real Estate Brokerage model. That model needed to incorporate customer concerns. The model also needed to incorporate the realization that buyers (and sellers) of Real Estate were turning to the Internet in ever increasing numbers.
In 2005, a core group of the FSBO Revolution, Inc research team began designing a business model which incorporated the important aspects of these powerful trends into an actual service for home sellers. The proper licenses and insurance were secured at this point.
Test marketing of the service (for sellers) began in 2006. It was on February 1, 2006 that FSBO Revolution, Inc accepted it’s first client (home seller). During its first 8 months of operation, FSBO Revolution, Inc listed over 140 properties in the Green Bay, Wisconsin marketplace. This volume was accomplished by one salesperson and one assistant.
Within this relatively short time frame, FSBO Revolution, Inc became one of the largest listers of Real Estate in its market. The home selling public welcomed the FSBO Revolution product convincingly. Well over 90% of the listing presentations resulted in obtaining the listing. Word of mouth was favorable. It was clearly demonstrated that the FSBO Revolution programs were effective.
|