The Truth About FSBO
First of all, what is FSBO?
FSBO = For Sale By Owner. (pronounced “Fizz-bo”)
When property owners try to sell their property without representation from a qualified professional.
If, after reading this webpage,
you decide that you’d like to
try to sell your property without professional representation,
please contact us.
Why would we help you FSBO?
Firstly, we may have a buyer who is looking for exactly what you’re trying to sell.
And as professionals, we are always interested in
knowing as much as we can about the markets we sell.
Secondly, if you’re looking to sell your property,
chances are that you’ll need an agent
to help you find a new home.
Even if you’re moving out of state,
we can help you find a reputable agent
wherever you’re moving.
Thirdly, we also know that
90% of FSBOs eventually list with an agent,
and honestly, we would like the opportunity
to be your Realtors of choice in the future.
No Obligation.No Pressure.
The Facts About FSBOs
A close look at “For-Sale-By-Owner” (FSBO) data from NAR’s 2006 Profile of Home Buyers and Sellers
Each year a small army of home sellers throw caution to the wind and “go it alone” — without the assistance of a licensed real estate professional.
This ever-decreasing band of risk-takers, ventures into the land of pricing, marketing, screening, scheduling, showing and paperwork, with the goal of saving some money. It’s often an experience they find less than rewarding.
The numbers (if not the sellers) tell the story.
In 2006, just 12 percent of sellers chose the FSBO (“For Sale By Owner”) route, down from 13 percent the previous year, according to NAR’s 2006 Profile of Home Buyers and Sellers. This is down from about 20 percent in 1987.
But more telling than the decline in FSBOs is the fact that 40 percent of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 7 percent of all home sales are open market FSBO transactions. The rest are simply unrepresented sellers in private transactions.
From NAR’s 2006 Profile of Home Buyers and Sellers
Eighteen percent of FSBO sellers indicated that preparing the home for sale was the most difficult task when selling without the assistance of an agent, followed closely by understanding and performing paperwork (16 percent) and selling within their desired time frame (15 percent).
As for profit — after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.
Homes sold with the help of a real estate professional in 2006 sold on average for 32 percent more than FSBO sales. The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions.
COMMON FSBO DIFFICULTIES
- Offered at the WRONG PRICE.
- Overpriced and lose valuable time, effort, and marketing dollars.
- Underpriced and lose valuable equity.
- FSBO Websites
- ‘Free’ sites often sell their mailing lists to generate revenue.
- Most sites charge listing fees that vary from just a few dollars to thousands of dollars, but provide little traffic or leads.
- Many sites are poorly marketed, which means it’s unlikely a buyer will ever find your property in the first place.
- Marketing (newspapers, open house events, showings, etc)
- Time consuming
- Often ineffective
- Frequently results in unqualified buyers and ‘tire kickers’
- Typical Results
- 90% eventually list with a Realtor
- Only about 14% actually sell by owner
- Transaction Problems
- Personality conflicts between buyer and seller often lead to problems or litigation.
- Maze of paperwork required to complete a sale.
- Inexperienced buyers or sellers may pay unnecessary costs and expenses.
- Property defects and problems are often not properly disclosed in FSBO transactions.
- Title/deed errors can lead to long-term difficulties and even foreclosure (tax liens, mortgage liens, clouded title, etc).
Something else to consider…
Most buyers are already working with real estate agents because doing so is generally free for them.
Many buyers have a pretty good idea what they want and don’t want to spend weeks driving around potential neighborhoods or digging through the classifieds.
By working with a real estate agent, they get the benefit of having a professional show them an area, point out important things they might otherwise miss, give them information about the neighborhoods, schools, laws, and regulations, help them negotiate a good deal for their purchase, help them wade through the piles of paperwork, plus walk them through the closing process and make certain everything that needs to get done actually gets done.
What Sells Houses?
Exposure sells houses.
You want to expose or market your home to as many people
(specifically qualified buyers)
as possible in the fastest time possible, right?
More Exposure = More Potential Buyers
More Potential Buyers = More Offers
More Offers = Better Sales Price
So how do you get more exposure?
Market your property more.
Typical FSBO Marketing Includes:
a Yard sign
a few newspaper ads
maybe an ad on a FSBO site or two
Can you sell your property on your own?
Yes, of course. The real question is whether or not you really want to do so.
Can you and your family afford to waste valuable time and money testing the market and trying things on your own?
If your answer is no, then contact us now to request a Free Seller Consultation.
If your answer is yes, let us know. We will be happy to put you on our mailing list and send you weekly ideas on how to help you sell your property.
Why would we help you FSBO?
Firstly, if you’re looking to sell your home, chances are that you’ll need an agent to help you find a new home. Even if you’re moving out of state, we can help you find a reputable agent wherever you’re moving.
Secondly, we also know that 90% of FSBOs eventually list with an agent, and honestly, we would like the opportunity to be your Realtors of choice in the future.