Is For Sale By Owner a good idea?

I am going to pick on For Sale By Owners or as we call them FSBO! The people that take this on are courageous in their efforts to save money but is this the best idea? 

I am all about DIY projects! I love watching YouTube and taking on the challenge of new projects but I don't feel that selling your home falls into a project category and here is why....... Its like showing up to a knife fight without your knife! 😨

The market is an ever changing beast and to price your home correctly you need to have some knowledge of the market trends for the area. You can not gain this from looking at Zillow or any other site that is similar. A majority of people fall under the false pretense that these websites have all the up to date information.  I have rarely seen a FSBO priced appropriately appropriately for the market and neighborhood trends. Yes, when I see a new FSBO I take the time to check! 😉  

There are 4  essential parts of marketing that really attract a customer to anything that is for sale.....

1. How does it look?

2. How well is it priced?

3. How visible is it to its market?

4. What is being offering the buyers agent?

A typical FSBO owner has taken their own home photos and the pictures don't do the home justice. There is some skill that goes into taking a picture of a boxed shape room and making it look inviting and spacious and warm. 

A typical FSBO owner bases the price of their home on the top sale for the area and ALL owners believe their home is the best on the block even which that is far from the truth. Leaving their home on the market for a substantial amount of time, which statically lessens the desirability of the home. Yes, people want what others want. When your home has been for sale for along time people start to wonder what is wrong with your home? There has to be a reason i ts not selling. 

A typical FSBO owner only has so much reach when it comes to getting their homes in front of potential buyers. Its not as easy as you might think to advertise your home. Most agents spend a large sum on advertising per year to help get exposure, agents also have the ability to reach 30,000 plus agents with your listing that might have more than 1 client who might be interested. 

A typical FSBO owner not only is not being represented by an agent they also offer a lower commission to the buyers agent leaving the buy to make up the difference. Part of the buyers contract states in some cases that the buyer will pay the broker if the seller does not. As a buyer knowing you might have to pay your broker extra money for the FSBO when the same house is for sale down the street leaves your home less desirable. 

There are many other factors that come into play when not using an agent but I felt like these were the top priority. 

Once an offer is made the seller has to figure out how to get all the documents together and pay a higher fee for closing documents to be prepared. At the end of a typical FSBO the owner has mad less money than they would have if they had hired an agent.