What The For Sale By Owners Don't Understand

By
Real Estate Agent with Keller Williams Realty 0575737

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.

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Wanda Kubat-Nerdin - Wanda Can! 07/27/2009 11:33 AM
  2. Gabe Sanders 07/28/2009 12:06 AM
  3. Lyn Sims 07/28/2009 08:19 AM
Topic:
ActiveRain Community
Location:
Texas Denton County Flower Mound
Groups:
Realtors®
FOR SALE BY OWNER - MARKETING(FSBO)
FSBO Killers
Almost Anything Goes
Diary of a Realtor
Tags:
for sale by owner tips

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Rainmaker
1,312,610
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

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

Jul 27, 2009 12:06 PM #7
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Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

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!

Jul 27, 2009 12:48 PM #8
Rainmaker
238,410
Angelia Garcia
Pure Realtors - Dallas, TX

I see Roger has done his homework. 

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

Jul 27, 2009 01:18 PM #9
Rainmaker
553,708
Barb Szabo, CRS
RE/MAX Trinity Brecksville Ohio - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

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

Jul 27, 2009 01:33 PM #10
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

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!

Jul 27, 2009 01:36 PM #11
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Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

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. 

Jul 27, 2009 01:47 PM #12
Rainmaker
2,763,153
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

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!

Jul 27, 2009 03:01 PM #13
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

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.

Jul 27, 2009 03:42 PM #14
Rainmaker
325,871
Esko Kiuru
Bethesda, MD

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.

Jul 27, 2009 04:12 PM #15
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

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

Jul 28, 2009 12:06 AM #16
Rainmaker
631,755
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

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.

Jul 28, 2009 02:53 AM #17
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Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

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.

Jul 28, 2009 02:54 AM #18
Rainmaker
314,256
Carol Culkin
Reece & Nichols - Leawood, KS
Overland Park
Gary -I notice less FSBOs these days - sellers need the help of an agent even more so in this market.
Jul 28, 2009 04:00 AM #19
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Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

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.

Jul 28, 2009 06:56 AM #20
Rainmaker
3,815,393
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

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!

Jul 28, 2009 01:42 PM #21
Rainer
273,383
Irene Tron
Valparaiso, IN

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.

Jul 31, 2009 01:21 AM #22
Rainmaker
3,017,052
Richard Weeks
Dallas, TX
REALTOR®, Broker

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

Aug 06, 2009 09:28 PM #23
Rainer
117,889
Kate Talarico
Kates Home Staging and Interior Design - Goshen, NY
RESA, Top Orange County Home Decorator & Stager

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.

Aug 09, 2009 06:34 AM #24
Rainmaker
798,259
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

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.

Sep 01, 2009 10:04 AM #25
Rainmaker
94,274
Sharon Harris
Keller Williams Keystone Realty - Hanover, PA
Realtor

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.

Jan 19, 2010 12:44 PM #26
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Gary Woltal

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