FSBO
For Sale by Owner is a term used when clients try selling their home themselves. This can definitely work for some people, but after a few months of the old college try, they end up hiring a Realtor. They end up hiring a Realtor because of the frustration factor. We will run down a few of the top reasons why this only works for eight percent of home sellers.
Pricing
- The biggest reason that the for sale by owner struggle is pricing. There are a couple of factors as to why their pricing is off. How they came up with their price of the home is important.
They often say the one down the street just sold for a certain amount. In actuality, the one down the street sold for that amount because it was 300 square feet bigger, was remodeled and had a pool. You always have to compare apples to apples when pricing a home or compensate for the differential. The other reason the pricing is off is because a broker didn’t represent it. Buyers looking at a FSBO expect a much lower price than market value. The National Association of Realtors reports that For Sale by Owner homes sell for $30,000 to $50,000 less than those sold through a brokerage. It’s the simple math; a new car dealership usually gets more for a vehicle than a private seller. They also feel it will be a much harder transaction to complete because the seller is not a licensed professional.
Marketing
In todays age of home buying 90 percent of buyers are starting their search online. The seller’s home usually is not being found in the majority of real estate websites, YouTube, Twitter, Google plus, real estate Facebook pages etc. Even if they are found many times they do not contain the standard information potential buyers expect to see. The photos are another source of indifference if the sellers did not have the photos professionally taken. Realtors have databases of thousands of potential homebuyers that they send their listings to and sellers traditionally do not.
Availability
- Having the home available is crucial to your success as a home seller. Telling potential clients its only available to be seen on the weekends is not going to work. Potential clients work all kinds of hours these days. If you have small windows of time to view homes and its not available, they are on to the next one.
When owners do show the home, they tend to talk themselves out of a sale by talking too much. Buyers want the freedom to walk through the home and discuss features and benefits with each other without being talked to death. Having an emotionally tied seller tends to chase buyers away. The majority of buyers are working with a Realtor to find their home. If your not in the Multiple Listing Service, you are not going to be seen.
These are a few of the reasons why For Sale by Owner listings end up in a Realtors hands. It only make sense to go where you will make the most amount of money. Statistics show you will net more profits utilizing a Realtor. Please contact us today if you may be thinking about selling your home.
