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So you want to sell your house. You feel confident in your sales abilities. You have an attorney friend to help you with the contracts and disclosures. How hard can it be to stick a "For Sale" sign in the ground, put an ad on Craig's List, and hold a few open houses? After all, that's what your real estate agent does for you, right?
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21 Comments on Why FSBO's Don't Work: You Attract the Wrong Type of Buyer
Shirley, thanks for your feedback!
You are right on target. FSBO is even more difficult in today's market.
Renee, in today's market so are so few FSBO's that I hardly ever see them any more.
Regina, you hit the nail on the head: FSBO's need qualified, serious buyers. And yes, there are fewer FSBO's out there now.
Regina - actually in our market in South Carolina, we're still seeing a lot of FSBO's. Recently, a FSBO right down the street from one of my listings called me to see how showings were going. I told him they were really picking up this spring. I'm sure he'd noticed the activity and that's why he called. Of course, he invited me to look at his home, and told me it was much nicer than my listing, why didn't I show it. I had to laugh! Great marketing on his part, and I'll probably spend some more time trying to educate him about the process and hopefully get his listing in the near future. What else are you doing to convert FSBO's to listings?
Teresa, good way to start the communication. Be an expert resource, without giving out your secrets.... he'll pretty soon see that you're smart and decide to give you his listing!
Regina, We have seen a noticeable drop in fsbos around here and it's no wonder. It's interesting to note that a home I now have listed the seller tried by owner first. At his first open house he had about 8 parties through. When I listed it and had my first open house, I only had 2 and at the second one I had 4. My theory is that they came to the by owner open house looking for a bargain, just as you said. Great post.
Many FSBO's really don't understand how much goes into the process. They just hope to save themselves money by not using a Realtor.
Great Post Regina, I htink you hit the nail squarely on the head. the public relly needs to see somthign like this. Many if not all FSBO never even think of just what type of buyers they are getting. Ultimately, I have seen many FSBO later call to have a Realtor sell their property after experiencing a nightmare. One they did not expect when they started. Qualifyed guyer has got to be the biggest hurdle here. Thanks!
Regina--I really like the four categories of buyers that FSBOs attract. Arise is right in his comment above. Thanks. I always learn something when I visit your posts. Mary
Some friends of mine are (trying) to sell their home. They have priced it at $379,000, which is much to high for the home and the neighborhood, although it is lovely. I don't know many people wanting to buy a home in that price range that would not enlist the free services of a buyers agent. Besides free service and advice, they will most likely get a nice closing gift too. It's been months now, and nothing is going on, but still they try.......
It is sad that people somehow persuade themselves that they can be the one of the few that actually does sell without professional representation and not shoot themselves in the foot in the process.
JL, you are right that most FSBO's do not realize how much effort and how expensive it is to sell a house... not to mention the legal disclosures etc.
Back in the day, we used to try to convert FSBOs to listings. Haven't seen too many FSBOs in San Diego County these days!
Very succintly put - the other scary thing to me about FSBO's is that they are inviting strangers into their home without any way to determine what that stranger's real agenda may be - burglary? worse?
Nancy, thats a great point. Just one more thihng for them to consider. I today's world that stranger could be there for any number of reasons.
So glad you put this out!
Nancy, that is true, FSBOs compromise their private & invite lawsuits by advertising & showing their property themselves. Prospective "buyers" can gather confidential info & commit ID theft. Or they can come back when the house is vacant, they know where all your valuables are & what you have.
I wonder what the statistic is for FSBO's that sell as a FSBO, but then turn around and buy a home with an agent. It is very uncomfortable to walk in to a seller's house that has the seller home, and have the client feel comfortable.
Heather, I think the stat's are that 90% - 95% of FSBO's eventually list their house for sale with a real estate agent.