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Final PieceWhen you watch the for sale by owner market it is so predictable. Predictable from an odds standpoint that it doesn't work. There is a lesson for

What The For Sale By Owners Don't Understand.

For Sale By Owners can be successful 13% to 19% of the time in selling their home on their own without the services of a professional Realtor, Stager, Mortgage resources, etc. But inevitably for most, we will say 80% of them it is the Final Piece that hangs them up in putting this jigsaw puzzle together.

It could be the effective pricing of their home and knowing the "inside" information about their neighborhood or market. It could be tips on improving the condition. It could be simply excellent marketing and exposure or targeting the exact kind of buyer for their property. In the end often two weeks to two months or longer are "wasted" in time before they do the right thing and connect with a REALTOR.

Help ButtonHitting that HELP button should come sooner rather than later and not click off so much time accomplishing pretty much nothing and inconveniencing their lives with unqualified tire kickers coming to their door, not to mention the security problem with potential buyers that are complete strangers.

Try For Sale By Owner for a predetermined time if you think you can handle the transaction yourself. But for at least 4 of 5 where it doesn't work (not good odds), shift over quickly to working with a professional that does this every day and for a living.

You are paying them to make this work for you. Let Realtors work their magic and you will soon be on your way to that next phase of your life.

 
This post has been included in Texas Real Estate News Denton County, TX Real Estate News Flower Mound, TX Real Estate News
Post is included in group: Almost Anything Goes
Post is included in group: Diary of a Realtor
Post is included in group: FOR SALE BY OWNER - MARKETING(FSBO)
Post is included in group: FSBO Killers
Post is included in group: Realtors®

26 Comments on What The For Sale By Owners Don't Understand

JUL
27
2009
961,179 Points 12 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Gary

Outstanding post, with current market conditions it makes it very challenging for an owner to sell their property without a real estate professional.

Good luck and success.

Lou Ludwig

6:19pm • #1

I love assisting the For Sale By Owner.  They appreciate the help and isn't that why we are in this business.... to help homeowners in a variety of ways.   It never hurts to assist the FSBO and besides, it makes for good 'karma'.

6:20pm • #2
421,594 Points 76 Featured Posts Called Shot Master

Gary, as a former homebuilder, many don't understand my support for Realtors®, claiming that most agents are overpaid--blah, blah, blah. And, as always, I strongly disagree.  Having worked with hundreds of Realtors® during my career, I always felt that it was the most prudent choice. And, in today's market, it's more important than ever.

6:22pm • #3
1,545,551 Points 416 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

I believe that the statistics of FSBO sales is inflated.  I believe that is the percentage that tries.  It reflects a moment in time of listings. 

I believe that far fewer ever sell. 

No matter.  I sell them and actually like to. 

6:39pm • #4
Outside Blog

I've seen lowere percentages on NAR as well - but the point is you are correct. I had an old college friend email me a month ago "we are lising our house FSBO what advice can you give" My advice was to hire a REALTOR and not end up in the 90% don't sell it statistic bin.

I wouldn't go to court representing myself - why would I get into a heavily litigous thing such as house selling representing myself. Also many buyers are very leery of FSBO's - their is a big trust factor their, they feel like they can't trust this person that won't hire someone that knows the legalities of what is going on.

6:54pm • #5
180,569 Points 12 Featured Posts Called Shot Master

Gary, great post on the FSBO.  But as Lenn said, your FSBO successful sales numbers are high.  Yes, about 15% of homes sold are FSBO but of those sold, almost half were sold to someone the seller knew personally (not on the open market).  3-5% were discounted sells (ie, the seller called a 'we buy houses' investor and sold for a MAJOR discount).  That only leaves about 3% of homes successfully sold by  a FSBO.

Now, those are really, really bad odds.

7:04pm • #6
706,299 Points 6 Featured Posts Outside Blog Called Shot Master

Great post!    Thanks for highlighting the issues that count against "doing it oneself".

7:06pm • #7
658,203 Points 44 Featured Posts Localism Sponsor Called Shot Master

Gary, I especially liked this and re-blogged it due to the fact that you simply wrote a post that everyone is able to understand! Thank you!

7:48pm • #8
232,815 Points 1 Featured Post Attended Rain Camp

I see Roger has done his homework. 

FSBO's really need to wake up.  Especially in this market, times are tougher.

8:18pm • #9
381,835 Points 19 Featured Posts Localism Sponsor Outside Blog

Gary, I am seeing far fewer fsbo listings than in recent years. Not surprising though!

8:33pm • #10
662,563 Points 113 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Gary, wonderful information for FSBO's. When they don't sell they get very bitter, and there is no need.

Great thing Malita said, she wouldn't go to court representing herself. A person could... but good luck with that!

8:36pm • #11
403,160 Points 2 Featured Posts Called Shot Master

Gary, I just encountered this at an open house.  When I offered to look at their home, I had the infrormation ready to show them about their pricing, but it was spot on.  However, no for sale signs, nothing on Craigslist, no opportunity for them.  They certainly are motivated, but no follow-through.  Ripe for the picking, me thinks.   Thanks for an article I can use on them.  Plagiarism.  I know you don't mind...from me. I won't use it word for word, but you are a huge source of inspiration, as always. 

8:47pm • #12
873,250 Points 35 Featured Posts Localism Sponsor Outside Blog

Gary, I just had this discussion with a friend who insists they can list their home themselves.  They don't "get it."  Believe me, I tried.  I sent them to AR and am going to send them this post but I don't think it will sink in until some time next year when they finally hire an expert to sell their home!

10:01pm • #13
722,426 Points 47 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The same advise goes to purchaser too.  Once I got a call to do a listing. I gave her my opinion of market value and suggest list after a CMA.  She paid far more than that for the house.  She purchased a FSBO and got taken.  Smart people hire a professional.

10:42pm • #14
313,393 Points 8 Featured Posts Outside Blog

Gary,

Most FSBOs first think that it's a piece of cake to sell a home. Just put an ad on Craigslist and voila. Soon enough, after about two months of nothing, they'll realize that in order to sell much more needs to be done. Call a real estate agent pronto.

11:12pm • #15
JUL
28
2009
975,463 Points 17 Featured Posts Hit Router Called Shot Master

Thanks Gary, I really like this post and I hope you don't object to my re-blogging it.

7:06am • #16
415,027 Points 30 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Great post. If I speak to someone who believes they can sell it themselves, I always encourage them to try...it usually does not work out.  There is a reason that we do what we do.

9:53am • #17
508,711 Points 8 Featured Posts Outside Blog Called Shot Master

Gary,

I hear and see so many fsbo horror stories. We run into all sorts of problems trying to sell property. Just imagine how much harder for the non trained homeowner.

9:54am • #18
300,676 Points 55 Featured Posts Localism Sponsor Outside Blog
Gary -I notice less FSBOs these days - sellers need the help of an agent even more so in this market.
11:00am • #19
1,049,319 Points 177 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Gary - I found a FSBO who asked on Trulia what are the marketing strategies that realtors use to sell homes. He listed his home through a flat-fee listing, 60days and 30 showings later, no offers.

I did not share my marketing strategy as it belongs to me (intellectual property). If sticking a sign in the yard would sell homes, more homes would be sold.

1:56pm • #20
805,358 Points 27 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Gary,

I love the red "help" button! A FSBO seller does not realize the intricacies of the process. They may find a buyer but are they pre-approved and can they preform on the contract? Do they have an advocate while negotiating? Do they get a good price for the home? The list goes on!

8:42pm • #21
JUL
31
2009
270,216 Points 2 Featured Posts Localism Sponsor Outside Blog

Great post!  How often do we do the same thing in life with other things as well?  We try to do things that we have no business attempting on our own.  We just don't realize how much we don't know sometimes.

8:21am • #22
AUG
07
2009
524,617 Points 2 Featured Posts Called Shot Master

Then you add in the legal and saftey factors, a homeowner has some huge risks.

4:28am • #23
AUG
09
2009
Outside Blog

Buying a home is such a huge purchase and decision, I would defintely want a realtor to help me through the process.  When I bought my first home, I constantly spoke and emailed my realtor for advice.

1:34pm • #24
SEP
01
2009
168,217 Points 2 Featured Posts

Gary - It's not just about putting a sign in the front yard and paying for an ad, or placing the home on some internet site.  Selling real estate is much more than that, and that is why 80% of FSBO's fail.  That is also why we, as realtors, need to be licensed and have to attend continuing education classed to retain our licenses.  That is just the beginning.

5:04pm • #25
JAN
19
2010
1 Featured Post

Yes FSBOS do seem to know it all. But after time goes bye and no sale they seem to forget all that know and call for help.

8:44pm • #26

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Gary Woltal - Assoc. Broker REALTOR® SFR Dallas Ft. Worth

Flower Mound, TX

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Keller Williams Realty

Address: 2611 Cross Timbers Rd, Suite 100, Flower Mound, TX, 75028

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