For Sale By Owner sales are rarely successful. In fact, 90% of For Sale By Owner Fail.
When selling a home, most people turn to a real estate agent to help them with the process. However, there are some who choose to sell their homes themselves, or ‘For Sale By Owner’ (FSBO). Though this may seem like a cost-effective option, in reality, it’s rarely successful – in fact, 90% of FSBOs fail. The National Association of Realtor say the statistic is even lower: “FSBOs accounted for 7% of home sales in 2020. The typical FSBO home sold for $260,000 compared to $318,000 for agent-assisted home sales.”
Here are 5 reasons why:
Overpricing:
One of the most common mistakes FSBOs make is pricing their home too high. Without a good understanding of the market, it’s easy to overprice your home and end up sitting on the market for months without any offers. This can be frustrating and expensive, as you’ll likely have to drop the price eventually anyway.
Poor Marketing = Limited exposure:
FSBOs rely heavily on advertising and marketing their homes themselves in order to generate interest from buyers. However, this can be challenging as they don’t have the same reach as real estate agents – who have access to databases of potential buyers. FSBOs often don’t have the time or resources needed to do this effectively, resulting in their homes selling for less than they could have.
Lack of negotiation skills:
Negotiating the sale of a home can be tricky and is often best left to those with experience. This is because there are many factors to consider, such as repairs, inspections, and financing. FSBOs who are unfamiliar with the process may make mistakes that end up costing them money.
Failure to manage inquiries and interest:
Selling a home can be emotional, and FSBOs often have difficulty dealing with buyers who are interested in their property. This can be tough to handle, especially if you’re not used to working with people in this capacity.
Legal complexities:
There are many legal complexities involved in selling a home, from understanding contracts to complying with regulations. FSBOs can find it difficult to navigate these complexities, which can result in costly mistakes.
If you’re thinking about selling your home, it’s important to weigh your options carefully. Selling FSBO may seem like a cost-effective option, but in reality, it’s often more trouble than it’s worth. Remember, 90% of For Sale By Owner Fail.
Hiring a real estate agent is usually the best option, as they have the knowledge, experience, and resources needed to help you successfully sell your home. Plus, statistics show partnering with an agent will get you 25% more on the sale- completely covering agent commissions. If you’re ready to sell anywhere in the Sarasota area, send me a DM, and I’ll be in touch.
Thinking about SELLING a home? Grab a copy of my home seller guide here!
