If you browse through real estate forums or social media sites, you've probably encountered this question more than a few times:

Why does Zillow allow FSBO (For Sale By Owner) properties to be displayed on their site?

When this question is posed, much debate will typically ensue. The debate tends to center on the facts that most real estate agents are aware of: Many FSBOs are unsuccessful, so homeowners often end up enlisting the help of an agent; many homeowners are not aware of the rules, regulation and disclosures required in a real estate transaction; and FSBOs often sell for less than agent-listed properties.

Yet the question itself is rarely answered, and the answer is actually quite simple:

FSBOs are shown on Zillow because they are part of the for-sale housing inventory.

Set aside your feelings about FSBOs for a moment and think like a consumer: Consumers want to see available inventory, so we display available inventory.

But FSBOs undermine real estate agents!

Not really. The National Association of Realtors® publishes an annual a profile of home buyers and sellers that consistently shows the number of FSBO listings ranging from 5 to 10 percent. That leaves 90 to 95 percent of home sellers needing, and using, an agent. Focus your marketing and prospecting on that huge percentage of sellers, and you'll find that there's plenty of business out there.

Agents "convert" FSBO listings to "FSBA" listings (For Sale By Agent) every day. As an agent and broker in my life before Zillow, I sold many FSBO listed homes to my buyer clients, getting a commission check each and every time. I've spoken to dozens and dozens of agents who have done the same.

But more people are going FSBO, reducing the potential for agents to list properties!

Not really. According to the 2014 NAR Profile of Home Buyers and Sellers, 14 percent of sellers went FSBO in 2003. In 2014 that number dropped to 9 percent. So the number of FSBOs has declined since property listings on the Internet started becoming commonplace. The use of a real estate agent has increased since Zillow launched in 2006.

Real estate agents are not being driven out of the industry by FSBOs - quite the opposite: Their services are in greater demand than ever. Even with all the information available to home buyers and sellers these days, more and more are using an agent to help them.

Using FSBOs on Zillow to your advantage

Rather than lament the appearance of a few FSBO properties on Zillow - they make up only 4 percent of our 2.3 million listings - why not use the free tools Zillow provides to prospect these properties and turn them into your listings? You can even get instant alerts about new and changed FSBOs on Zillow. These alerts can help you identify more for-sale properties for your buyers in areas with low inventory, or get you in contact with FSBO homeowners who may find themselves in need of the services of a real estate professional.

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