For Sale By Owner is Not Working

Selling a home can seem easy enough, and many homeowners opt to take matters into their own hands by listing their property as "For Sale By Owner" (FSBO). While this approach may seem totally possible, statistically it often leads to homes sitting on the market for longer periods and selling below their actual value. In this blog post, we will explore the reasons behind this issue and shed some light on the importance of seeking professional help when selling your home.

One of the primary reasons why homes listed as FSBO tend to sit on the market for an extended period is the issue of value. Almost always, we see FSBOs asking WAY over market value and this is due typically to the owner being way too attached to thier idea of the vakue of thier home through their limited lense.

Determining the right price for your property is a complex task that requires thorough research and analysis and is heavily dependent on time and comparables. Homeowners often lack the expertise and resources to accurately assess their home's value, leading to overpricing or underpricing. They may even go straight to "resources" such as Zillow to guess the vaue. Overpriced homes discourage potential buyers and also cause realtors representing buyers to not take you seriously and it shows a lack of understadning and reasonablility in the seller. This pricing dilemma can result in the property languishing on the market without any serious offers.

Another contributing factor to the prolonged selling time of FSBO homes is the limited marketing exposure. Real estate agents possess extensive networks, paid ads, access to multiple listing services (MLS), and marketing strategies that significantly broaden the reach of a property listing. On the other hand, FSBO sellers may struggle to attract qualified buyers due to limited visibility. They often fail to tap into the vast potential of the real estate market, resulting in fewer showings and missed opportunities. The people calling you the most will be realtors!

Furthermore, negotiating is an essential aspect of any successful real estate transaction. Experienced agents possess the necessary skills to navigate through negotiations and secure the best deal for their clients. Conversely, FSBO sellers may lack the expertise to handle negotiations effectively, leading to lowball offers or even lost deals. Additionally, the absence of a professional intermediary can make buyers wary, as they may believe they can exploit the lack of representation to secure a lower price.

While the idea of selling a home without the assistance of a real estate agent may seem appealing and cost saving, it often leads to homes sitting on the market for longer periods and selling below their actual value. The money you lose DIY could have gone to a professional and you would have still made more of a profit! 

The complex nature of determining a property's value, limited marketing exposure, and lack of negotiation skills are some of the significant challenges FSBO sellers face. By enlisting the help of a professional real estate agent, homeowners can ensure a smoother and more successful selling process. Let us not forget the marriad of legal exposure in the event you forget somethign or miss a step.