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Why do "For Sale by Owner" sales often fail?
As a licensed real estate professional, I've seen my share of FSBOs. Most of the time, they end up with a Realtor sign in the yard after months of languishing on the market with a "For Sale By Owner" sign. I just passed a former FSBO yesterday. As usual, I chuckled when I saw the Realtor sign in the front yard.
Why do they fail at a higher rate than a professionally listed property?
Homeowners seldom really know the current market. That leads to an overpriced home that savvy buyers would never buy. I showed one this past Monday that was 62% overpriced. I guess the seller assumes there is always a buyer with more money than brains out there. What you want, and what a home will sell for may be light years apart. Showing a FSBO can be challenging. When an agent sets up a dozen showings in one day, scheduling becomes an art. Access is the key to making that day successful. If a FSBO can't allow the house to be shown except on a limited schedule the odds are radically against him. That's true of listed properties too. Access is really important. Homeowners may not know how to negotiate an offer. There is usually some ... more

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