How to Earn The Trust of For Sale By Owner Sellers

Thank you for sharing. 

The five tips are spon on.  Your infographic, not so much though.

1.     Lower Selling Price

a.     this is repeated often but is not supported by reality.  Will a real estate broker really generate $16% more net after commissions on a single house?  No. Causation does not mean correlation. Quoting from the NAR, "studies have shown that people are more likely to FSBO in markets with lower price points.". Large macroeconomic data (the United States FSBO sales data) does not reflect/support the local market; this is a logical fallacy being used to mislead and confuse sellers. The NAR should cease using this misleading statement. 

b.     If a car salesman (real estate broker) sells Ferrari's and another (FSBO) sells Fords, which one would generate higher sales prices per unit?  Is the Ferrari salesperson better because they generate more money for the seller? Or they sell higher priced cars?  Which one has a higher sales price when compared to other sales people in the same market (Fords or Ferraris only).  That is a more valid comparison.  

c.     An economic study, which controlled for the Madison, WI local market, showed there was no difference between sold pricing for FSBO/agents. Certainly not what the NAR and real estate sales industry want to hear, let alone disclose.  Note, the study also has some caveats to the conclusions.  

d.     An anecdotal example, actual sales activity: Two similar homes, in my market, on the same street, sold within weeks (33 days) of each other, one FSBO, one agent represented.  
House 1 FSBO, 1,140 sq ft, 2 bed 2 baths sold for $224,000, sold June 1.  
House 2 Agent, 2 bed, 2 baths, 1,190 sq ft, sold for $224,000, sold April 28.  
Let's assume the FSBO buyer had representation, so the only commission savings is on the listing side.  For example’s sake, assume a 2.5% listing commission.  The FSBO property netted $5,600 more.  Certainly not 16% more. This is not the exception to the rule. I have seen many seller's experience similar equity savings.

2.     Internet Strategy Lacking, including Relying only on Yard Signs and Decline of Print Ads

a.     Developing a robust internet marketing strategy does not require a real estate agent

b.     Flat Fee Listings are common and readily available to FSBO sellers to market in the local MLS; due to syndication, this puts the FSBO property in thousands of web sites worldwide.

c.     In addition, Zillow, Craigslist and other regional/local classified ad internet resources are available.

d.     Yes, being found online is key; there are plenty of options to do so. Presuming a real estate broker is the only solution is short sighted.

3.     Decline of FSBO from 19% to 9% over the last 20 years

a.     This is misleading due to the increasing use of Flat Fee Listings

b.     Flat Fee Listing were developed for the FSBO seller to advertise in the local MLS

c.     The Flat Fee Listing is included the 10-point percentage “drop” over the last 20 years.  In fact, Flat Fee Listings are a reason for the drop. Another part of the infographic states 7% of FSBO’s are on the MLS.  Most likely Flat Fee Listings.  Does that mean FSBO’s are really 16%, since being on the MLS means using a listing broker to advertise on the MLS?

4.     Legal issues

a.     Attorneys and real estate professionals can be hired to prevent legal issues from cropping up after the sale.  Hiring a real estate professional to assist the FSBO seller in complying with all required regulatory requirement is an option; i.e. an hourly fee for service engagements

b.     FSBO sellers can retain the needed professional expertise; hiring a real estate agent for all-inclusive services when they don’t need/want it is not meeting the needs of the client. The industry needs recognize the need to change to meet the client’s needs.

5.     Timing

a.     19 additional days to sell on average – this is old information

                                          i.     NAR 2016 Profile of Home Buyers and Sellers states “FSBO homes were typically on the market for just one week before selling”

b.     Not selling within desired timeline 

                                          i.     This issue is faced by FSBO and non-FSBO sellers who listings expire

When FSBO's realize that this house selling gig is not that easy, they end up hiring a Realtor. Sellers who hire Realtors to list their home statistically net more and sell faster, with less risk of legal problems.