The FSBO 411

Published by julia | Filed under Miscellaneous, Real Estate

Everybody wants to make as much money as they can when it comes time to sell their house, but it is necessary to maintain realistic expectations if there is to be a successful sale transaction.  The For Sale By Owner option is one way perceived to make the highest profit on a home’s sale.  In theory, that makes perfect sense, but there are so many variables that the results usually come out the opposite.  In fact, statistics from The National Association of Realtors report that only about 16% of those who listed their homes by owner were successful in selling their homes.  The main drawbacks can be divided into two categories, Buyer Perception, and Seller Frustration.

Buyer Perception:  Buyers often have a slightly negative perception of a seller who is selling on their own.  Some see the refusal to hire a realtor as “cheap” and they begin to wonder how far that “cheapness” goes.  They wonder if the Seller cut corners in maintenance, repairs, or upgrades.  They think the Seller is going to be difficult to work with and unreasonable negotiating terms.  In addition, they question the overall seriousness of the Seller and his intention to sell the house.  Lastly, a house shown by the owner or with the owner present does not usually show as well as that by an agent because the potential buyers are not at ease.  Even more damaging is the fact that the owner being there is a constant reminder that it is the Seller’s house.  Whereas with Seller absent, house lookers tend to automatically slip into imagining possession and start mentally arranging their furniture and art.  When a potential buyer can make it to that stage, the chances of them buying the house are increased.

Seller Perception:  There really is a lot of work involved in selling your own house.  You have to field all the phone calls yourself and conduct all the showings.  Unless you have a very flexible schedule, you will lose potential buyers simply because you cannot accommodate them.  Sellers are often frustrated by the low offers they receive, but buyers realize you are not paying any commission and therefore have more room to negotiate.  THEY want to save money, too and expect you to do your share of cooperating.  Most frustrating to Sellers of all is organizing the closing and understanding the paperwork.

Does this mean that you should not ever list FSBO?  Absolutely not!  There is always the chance that your house is the exact property that a buyer is looking for so throw a sign in the yard for a few weeks and see what happens.  If you haven’t sold by then, call a real estate agent to guide and protect you from sign in the yard to turning in your keys.