Home sellers can be their own worst enemies when they develop a case of "foot-in-mouth syndrome". It's a common ailment among all home sellers - especially FSBO's. Symptoms include the following:
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Sincere (mistaken) belief that buyers share sellers' priorities and taste.
- Assumption that marketing is all about property features, when it's really about the buyer's wants and needs.
- A need to fill silence with noise by talking too much (about the wrong things).
Perhaps you saw my recent post titled My Daughter Made an Offer on a FSBO this Weekend.... Not only did this very nice woman make the mistake of trying to negotiate on her own behalf, without any negotiating skills, she suffered from "foot-in-mouth syndrome". Let me give you some real life examples of how this condition played out:
My daughter and I spent about 15-20 minutes walking around this 1950's era house located two blocks from a university campus. Based on our experience and her goals, we talked about things she might do to make this house more enjoyable for her (cosmetics), maximize the return on her dollar with updates over the course of time, and make it a more profitable rental property for the future. Topping the list of "to-do's" were add a second bath, update the existing kitchen and bathroom, and rip out the 70's style harry-homeowner built-ins. We both have some experience with real estate investment, rental properties, and college-town communities in particular.
However, Madame FSBO said that extra built-in storage was a life-saver - without it, there just wouldn't be enough (yet, without it, closet space was double that in any dorm or grad student housing); she went on to say they never replaced the windows or updated the bath and kitchen because that would over-improve the house for the neighborhood. After 8 years of professionally managing student housing, Susan knows the importance of doing this, but the seller's comments had the effect of making her feel stupid for even considering it.
Hmmmm. Why didn't this seller just keep her mouth shut? Why didn't she ask questions about what the buyer liked/disliked and then validate the buyer's feelings about the house? Instead, she just weakened her own position in negotiations because she severely diluted the buyers' excitement about the property. Her "foot-in-mouth syndrome" AND her poor negotiating skills were the reasons Susan walked away from this property which suited Susan's wants, needs, goals and budget.
Madame FSBO, I hope you learn from your mistakes - you lost a well-qualified buyer who would have been very happy with your property. Please read 25 Mistakes Home Sellers Sometimes Make - At least five of them should look familiar, because you made them.
This was a disappointing experience for Susan, but a good one for me (from a professional perspective) - it reinforced in my mind the value I provide to home sellers.
Related Post:
UPDATE: This experience awakened Susan's desire to buy a home, and we spent the rest of my visit to Texas looking at neighborhoods. By the time I left last night, she was safely in the hands of a buyer-broker of her choice and they were submitting an offer on another (mls-listed) property today.
Copyright 2006-13. Margaret Woda. All rights reserved.
DISCLAIMER: Information contained in this post is deemed reliable on the date of publication, but it is not guaranteed and it is subject to change without notice.
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Margaret Woda, REALTOR & Associate Broker
Long & Foster Real Estate, Inc., 2191 Defense Hwy., Crofton, MD 21114
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67 Comments on FSBO Foot-In-Mouth Syndrome
The truth is that these mistakes can be made by ANY seller! They're not limited to FSBO's.
Margaret, the last statement you made just changed my mind about this post thread... and it is positive now.
There are a lot of unrepresented sellers (FSBOs) that are going to be capable of handling their transaction smoothly and efficiently. In fact, there are some that are going to do a better job of it than many agents. Others... not so much.
Margarete: Way to hang in there...... Good luck to your daughter in the purchase of her new home
love it! I would love to reprint this for fsbo's!
All those reasons is why people need the professionals -- only some of them do not realize it.
I love spending time helping FSBOs. IT's a great opprotunity to share some experience and potentially build up some rapport for a potential listing.
Margaret: Excellent post and further, I have had REALTORS(r) who made similar mistakes with me on negotiation... Something they don't teach in real estate school! Gary Keller of Keller Williams fame teaches that agents should adopt a philosophy of life-long learning (just one of the many reasons that I love Active Rain!), and this is just one of the many topic areas that agents need to be students of. Thanks again for a great post and primer on FSBO mistakes! Steve
You know what they say - Ignorance is bliss... and it's also a matter of perspective. I'm sure Madame FSBO, in this case, is thinking Susan missed out on the best house in Dallas-Fort Worth because she doesn't comprehend the vast number of available alternatives for any buyer.
I guess this is the reason that most FSBO's eventually list with a Realtor.
Great Story! - SO TRUE - We could share it with a FSBO contact but they wouldn't "Get it" because they never see the faux pas they're making -
Thanks for sharing it!!
Great post here. Most of these FSBO's are not sales professionals or marketing professionals. The legal repurcussions of a sale handled incorrectly can also be a nightmare. There's so many things to juggle and hats to wear... For these reasons, I have always recommended that my clients hire a professional.
Your post serves as another reminder of why this is critical in todays market. Great post.
Chad Weber - www.fsboleadportal.com/blog
Great post here. Most of these FSBO's are not sales professionals or marketing professionals. The legal repurcussions of a sale handled incorrectly can also be a nightmare. There's so many things to juggle and hats to wear... For these reasons, I have always recommended that my clients hire a professional.
Your post serves as another reminder of why this is critical in todays market. Great post.
Chad Weber - www.fsboleadportal.com/blog
FSBOs often make the mistake of assuming that since they are the expert on their home, they have the best odds of selling it themselves. Unfortunately, what they fail to understand is that they know nothing about the individual buyers' needs - which a good agent already knows.
Great post Margaret and very sound advice for the FSBOs. So true, like you said it just reinforces your value as an agent. Hope your daughter got the other house.
Thanks to everyone for your comments - I have read every one, but this got featured while I was out of town and didn't have enough computer-time to acknowledge or reciprocate. Thanks for understanding - I have caught up, at least with acknowledging comments, on the third post in this series and I'm about half-way through with reciprocating on comments for that one.
Nicely written! I've had so many instances of wanting to call up a seller and educate them, sometimes about their realtors MLS innacuracies. Of course I stop myself... that's why they need us! So many stories of sellers saying the wrong thing. So little time.
Whether a FSBO or sale with representation, well meaning homeowner comments can undermine a sale. That is one reason I prefer the homeowner not be present during a showing.
This is what also happens if your listing is owner occupied with the owner being present at all showings, the listing gets shown and the seller talks the buyer right out of making an offer.
I have yet to find a diplomatic way for telling the sellers "Shut your mouth!"
During the showings they need to LEAVE. All they are trying to do is save a commission but in the end it might cost them.
It appears this post has taken on a new life in recent days, and I thank you for your comments! As I re-read this post for the first time in a few months, I was reminded of that day and how I shoock my head in disbelief as the seller systematically killed that potential sale. It all worked out for the best, however, as I am in Texas again to help my daughter move into her new home - found by her REALTOR.