How Can FSBOs Fail in Today’s Market?
The real estate market is heating up, and you decide to sell your home. So, you decide to sell your home by using the “FSBO” method, but how does this alter your chance of getting the best price possible for your home? Do FSBOs work? What is the downfall of selling ‘by owner?’ Truth is, roughly 9% of FSBOs actually succeed, but what is it about FSBOs that pushes them to failure? Well, selling your home without the help of a real estate professional can seem like a grand idea, and saving an abundance of money is usually the ideal situation for most when selling a home, but is it worth it in the long run?
Saving some time here, the answer is no. Selling without a professional can be extremely difficult and stressful. Many who choose this route usually do so to save paying for real estate agent’s commission. Yes, it seems great, but many who choose this route usually don’t understand the necessary items that are needed to be successful. I mean, real estate is a full-time job. So, let’s go through the reasons why FSBOs usually fail, even in an extremely hot market.
Failure to Prepare the Property
Preparing the home before it goes on the market is probably one of the most important tasks on your ‘to-do’ list. Making sure the property is prepared does not just mean to make sure it’s tidy; it also means to fix any necessary items. Remember, your home has to be perfect! Some tasks offhand would be:
Removing unnecessary furniture and clutter. Remember, you have to let the owners picture themselves in this home!
Painting and decorating rooms that are often not touched; make them as appealing as possible!
Hire a professional cleaning service to make your home shine brighter than ever!
If your home lacks curb appeal, it’s likely that you are not going to gain much traction.
Lack of Marketing Expertise
Marketing is another item that is extremely important. To put into perspective, our team at Skender-Newton Realty spends an average of $359,979 on marketing each year. That number may seem obscene, but our agents value you and your home. When you have an agent who is willing to put their best foot forward, you will be able to sell your home seamlessly. Real estate professionals have the necessary skills and knowledge to correctly market your home, and this is where the difference comes into play. When a homeowner places their home on the market as a FSBO, they often do not know how to handle the marketing side to this hard and testy task! There are also very powerful online marketing channels that will not allow you to list your home as a FSBO. So, that kills an abundance of exposure. By using a Multiple Listing Service (MLS), it can host an abundance of activity and additional exposure to your home. Without having access to this, you will not be able to gain the needed attention when selling your home. FSBOs usually fail in real estate because the homeowner is not able to get their home in front of enough potential home buyers. Another item to consider is social media. At Skender-Newton Realty, we can offer some outstanding exposure on our social media pages! With agents who know the ‘ins and outs’ of the newest technology, you can nearly guarantee your home to sell!
Skipping the Details:
When selling your home, it is extremely important to match up to the competition that you will be faced with. Meaning, you will need professional photos taken of your home, have an amazing description of your home, ect.. In today’s day and age, it takes much more than a ‘for sale’ sign and some photos of the property. No, you will need to go into depth and make your property enticing to those who are looking to buy. Also, most buyers will not even consider your home unless you are upfront about the asking price and give full contact information. A good listing requires every needed detail.
FSBOs also fail because of the inability to ‘play nice’ with the buyers' agents. Most of the time, FSBOs are not willing to pay the buyer’s commission. A typical buyer's agent can expect to receive about 2.5-3% of a home’s selling price, and without that incentive, there’s no reason to show your home. If you are wanting to FSBO to catch the attention of a potential buyer, you will need to offer a similar commission to transaction brokers as well as buyer agents. So, it’s not just listing your home to save 5%; you will have to spend this amount anyway to get the needed traction on your home.
Over or Undervaluing your home
Correctly pricing your home can be done effectively and efficiently by a real estate professional, but going through this process without one can severely cost you! Our agents are masters of the market, and they will be able to strategically price your home where you will obtain the best offer! Now, it would be nice to have a system where you can get the correct value of your home before pricing it. Ah ha! Well, there is a way to do this, and Skender-Newton Realty is here to help! We have a system that is able to correctly price your home: HighlandsMarketPrices.com.
All in all, FSBOs seem like a great idea at the moment, but they can actually cost you more time and money than going with a real estate professional. If you are interested in selling your home, give us a call at (931) 261-9001. We will be able answer any questions you may have, and help you through the process! If you’re looking for a seamless real estate transaction, you know where to look: Skender-Newton Realty!