Reasons Why FSBOs Should NOT Sell Their Homes Themselves - A Baker's Dozen

I hear it all the time: "The real estate market is so hot, I can sell my house by myself. Why should I hire a Realtor when I can pocket the commission?" As many old adages would tell you, Nothing Comes Easy, Don't be Penny Wise and Pound Foolish, and other wonderful nuggets warn that things are not always as easy, or as simple as they appear.  And my friends, I can tell you that real estate is not different.

As a public service, and as I tell anyone that meets me - 95% of what I do is pro-bono, I'm happy to share this baker's dozen reasons why you should not sell your own house without a Realtor: 

1. What a homeowner thinks they will save in commission, they lose in sales price!

* BuyOwner.com – one of the websites to help FSBO list. BuyOwner.com’s CEO hired a Realtor to sell his home

* Many FSBO sellers waste time and, after not selling, hire a Realtor anyway. Wasted $$$

* USA Today reported FSBO Sellers will sell for 20% less than if listed with a Realtor

2. Danger of overpricing, which will cost in time, exposure, and potential to LOSE MONEY

* Overpriced homes become “stale” on the market. With technology, consumers can see how long your home has been For Sale.

* To revive a STALE property, you can (each reduces your NET profit):

- Lower price

- Pay above average commission (Realtor bringing a Buyer)

- Do improvements ($$$)

- Offer other incentives to get it sold (paid closing costs, concessions, etc.)

3. Get mostly bargain hunters vs. serious pre-qualified Buyers

*Furniture scenario: people who buy furniture Walkers or Ethan Allen vs. eBay

4. Many Sellers have difficulty negotiating

5. Not finding the Buyers hidden objections

6. Problems in financing – types of mortgages, who to talk to, creative financing…?

* When Buyer becomes overwhelmed, they give up and leave the purchase process

7. Do not have all Market Tools that will help them sell (like a good Realtor does). Top sources are:

* Internet

* Syndication placing home on hundreds of websites

* Yard signs, street signs

* Professional photos, 3D tours, etc.

8. No follow up system for potential interested Buyers

9. Marketing Expenses can be costly

*A Realtor absorbs these costs in exchange for commission

10. Homeowners can’t see what they can’t see:

* They are biased about their home vs. what others see

* Looking at points of 1^st impression is critical; FSBO Sellers are biased in what they see

* Personal feelings about their home do not transfer to a buyer

* What about offering a Home Warranty to reduce concerns? FSBO would likely not know about or be able to do this without a Realtor.

11. Not being at home and missing “A+ Buyers”

* Homes need to be available to show on the Buyer’s availability, not the Sellers

* When a FSBO Seller leaves the house, the “store” is closed! It's tough to make a sale when the store is closed!

* Realtors sell your home 24/7/365 (online marketing, multiple sources of info)

12. Allowing complete strangers having access to your home. Realtors use electronic lockboxes that grant access only to those licensed to use them, and they record who enters and when (many will even tell you when they left).

13. Most Sellers are not prepared to deal with legalities and disclosures related to selling real property

If you have any questions or would like to talk more about real estate, how home sales work, or have other reasons why FSCO should not sell on their own that I can share,  please reach out any time. You can reach me through my website - www.SilbarHomes.com, of my Facebook page - Steve Silbar, John L. Scott Real Estate, Spokane WA. And if you prefer email, ssilbar@johnlscott.com.