FSBO (For Sale By Owner) sellers cannot negotiate the best sales deal because of the following reasons:
- Most sellers, being emotionally attached to their house, consider the value of their home as being much higher than it really is. This usually results in either no sale at all or a sale for much below market value, and neither option is good for the seller.
- Without the education and experience of a Realtor, most sellers are not familiar with the "big picture" of the real estate market and its values. This is a skill that is exercised through daily exposure to the market and it only gets better with time.
- Sellers are not attune to buyers and do not know or understand their wants or needs. This is due to the fact that buyers do not feel comfortable speaking frankly about the home in front of the seller or the seller is not realistic regarding what the buyer may be looking for. Sometimes sellers do not know how to be objective and put themselves in the shoes of the buyers. For example, just because the home had enough room for their two kids doesn't mean that the buyer would have enough room for their two kids. Everyone leads a different life!
- FSBO sellers must negotiate personally with the buyers, getting involved on an emotional level, rather than treating the home sale as a business transaction.
- Sellers are inexperienced in solving complex requirements for mortgage lending procedures or solving glitches, such as low appraisals.
- The sellers who personally accept deposits may spend the funds, rather than securing with a neutral party. No accountability can be dangerous!
- FSBO sellers are at high risk of lawsuits because they are not familiar with legal forms, real estate laws, and requirements, nor do they understand the seriousness of what could take place if they do not dot all of their I's and cross all of their T's.
A word to the wise...
DO NOT ENTER INTO A REAL ESTATE TRANSACTION WITHOUT THE PROTECTION OF A PRO!