Sellers who try FSBO or For Sale by Owner typically do it for a of couple reasons. It could be to avoid commission fees, or they feel like they don’t need a professional to sell their home.
For whatever the reason might be, we see mistakes happen all the time. In the worse cases, the mistakes happen before the house makes it to the market.
- Less than 10% Sell: Most sellers who try FSBO are only trying to avoid the agent commission fees. Another downfall is only 8% of all homes sold are FSBO.
- FSBO’s Don’t Prepare Properly: Sellers should not be afraid to hire a professional cleaning service. Homes that are cluttered, smell like smoke and have pet hair are not a professional way to be shown. Please declutter your room. If you are cleaning the inside, you might as well clean the outside. The outside of your property serves as the first impression as to what buyers will see inside. If your home lacks curb appeal, then it will be hard to attract buyers.
- Show Your Home: Showing your home is a great way to build interest in it. An open house or private showing is not dead. It is also helpful to leave the property when you have potential buyers viewing it.
- Social media is GREAT: But do not over share or over post your listing. Another issue with social media and the internet is the miscommunication of information. If you are working with a realtor or an agency it is best to share their posts when they highlight your property!
- Overpricing Kills: Overpricing is a property killer. This is usually the toughest part and typically a great agent knows how to price a property so that it will sell. Furthermore, the denial of numerous offers is not good and most sellers try and wait for that perfect offer to come in. a key take away is that FSBO’s typically price their home too high, and end up denying the right offer.
- Negotiations are everywhere: Negotiations as a FSBO can be challenging. You could be talking to multiple buyers, the buyers’ agent, potentially an attorney, home inspectors, appraisers, and even the bank. An agent takes care of all that! FSBO’s tend to drop the ball on contacting all of these parties in a timely fashion and the deal falls through.
With so many things acting against FSBOs, it’s natural to find very few homes for sale by owners in the market.