For Sale By Owners typically end up listing with a Realtor for several different reasons. The issues that tend to turn FSBOs to clients include safety, lack of traffic, paperwork, and staging improperly. The biggest problem FSBOs have is not getting enough qualified buyers! The buyers that FSBOs's tend to attract are also usually the Discount or Unqualified buyer. These are the 4 different buyers in the market.  

Relocation Buyer- Realtors often target these buyers. These buyers are qualified, have a limited amount of time and want to see as many houses as possible, and want the help of a professional.

Needs Buyer- These buyers have a need. The are looking for certain parameters such as number of bedrooms, upgrades, RV Parking. They will look in the paper occasionally, but we can streamline the process for them and the typically want the help of a professional.

Discount Buyer- Usually do not want the service of a professional and try to get the best deal they can. They are looking to find sellers that cannot negotiate properly or have there house priced incorrectly.

Unqualified Buyer- Buyers that have tried to get qualified for a loan, but could not. If a FSBO has no way of qualifying them, they could end up a big waste of time and effort. This happened a week ago to a friends neighbor that was trying to sell there house FSBO!! The people had moved in prior to closing and they had already started to paint. They were never even qualified to buy the house!

There are some FSBOs out there that have probably sold there house successfully and saved a little money. According to NAR, in 2006 the median price of a home sold by and unrepresented seller was 24.3% less then what a home sold for with the help of a real estate practitioner. Educating For Sale By Owners can be the key to converting them to successful listings!

Contact Dan Follett at dannyfollett@msn.com or visit COLORADO SPRINGS REAL ESTATE