A FSBO, also known as a For Sale By Owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.
There are many reasons why homeowners attempt to sell their home on their own. A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don’t need a real estate professional to sell their home. No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell.
FSBOs Don’t Know How To Prepare The Home Correctly Before Listing For Sale
Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not. One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale.
FSBOs Don’t Know How To Screen Potentials Buyers
A top real estate agent overtime learns how to screen potential buyers. One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers.
FSBOs Aren’t Able To Be Available To Handle Property Inquiries
One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn’t have the time or availability to handle inquiries on their home or time to show it. Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property..
FSBOs Don’t Allow Potential Buyers To View The Home Without Pressure
Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn’t allow a potential buyer to have space as they view their home. Most home buyers do not like to be pressured when looking at a home.
FSBOs Don’t Know How To Negotiate With Potential Buyers Offers/Contract
A FSBO who doesn’t have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don’t know how to negotiate specific parts of the contract. Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections.
FSBOs Don’t Know How To Handle The Home Inspection Findings
Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home. One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction.
FSBOs Aren’t Willing To (Or Able To) Pay A Commission To A Buyers Agent
Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission. A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea. FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale.
FSBOs Home Is Lacking Exposure
One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers. There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home.
The FSBO Incorrectly Prices Their Home
Learning how to properly price real estate takes lots of practice and experience. One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home. There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO.
FSBOs Don’t Know How To Ensure The Deal Actually Closes
Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing. Another common reason why FSBOs fail is because the homeowner doesn’t know what to do after accepting the offer and the ball is dropped somewhere along the line.
Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%. If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.