There are several mistakes that FSBO sellers make repeatedly. They fall into this list:
Typical mistakes FSBOs Makes
- Priced wrong for the condition the house is in. I hear all the time about how the guy down the street sold his house for X. When I research these claims I always find out the FSBO seller knows what the asking price was but had no idea what the house actually sold for. Even in a strong sellers market, houses sell 3%-5% less than the list price and you still need to take out closing costs and commissions.
- Photos are poor quality. A high percentage of house buyers look on line first before they ever contact an agent. The FSBO sellers pictures are competing with professionally taken photos some of which are now virtually staged. Poor photos will get your house passed over quickly.
- They don’t devote enough time to the sales process. It takes time to get the word out there, hold open houses, do showings, qualify buyers and handle the paper work for a closing. If you aren’t prepared to carve out the time to do all these required activities you might want to reconsider.
- They don’t qualify buyers. If FSBO sellers aren’t doing this basic step they end up spending time showing or discussing the house with people who cannot afford to buy anyway. If your time is valuable you need to learn to qualify the buyers before devoting any time to them.
- FSBO sellers are emotionally attached to the house. You spent a large part of your life and created a lot of memories in this home. But no that you decided to sell it is a house not a home. Buyers buy houses that meet there needs not your home. If ti’s tough to separate yourself from the emotions you might want to reconsider handling what is now a business transaction.
- FSBO sellers don’t show the house well. Your not trained at selling houses. So you need to learn or reconsider.
- Some FSBO sellers don’t work well with buyer’s agents. The whole purpose for most FSBO sellers is to save the commission. So they really don’t like dealing with a buyers agent to whom they will need to pay a commission.
Choices for FSBO Sellers
If the above sounds like you selling your house on your own, you do have other choices. First you can list with an agent. Second you can sell as is for cash to a local we buy houses professional home buyer. Third you can sell to an iBuyer. The first option will list the house with no idea when the house may sell. This is especially true if the buyer is getting a bank loan. The second and third option allows you to sell quickly for cash. The second choice allows you to pick your closing date. The third option doesn’t give you that luxury. So weigh the costs and the benefits and choose wisely.