No doubt about it, everyone wants to save money when buying Windsor houses. Especially in real estate where home sellers want to save on commissions when home prices have really taken a hit in the last eight or so years.
While real estate commission rates are negotiable, normally you will likely be paying anywhere from 5% to 6 % when you sell your property. Understandably, there are some sellers that balk at paying this price. For most who will be listing their property for sell, they understand that it is not an easy task, which is why they end up hiring a realtor.
The success rate of selling a home FSBO is actually very low. On average, 80 percent of homes that are listed by sellers end up going through an agent. So why is it so difficult to sell a home FSBO?
1. Wrong Price
Owners, who try to sell their homes more often than not, price their homes way too high. They end up doing their own research, or refuse to take an agent’s advice. No doubt that if sellers priced their homes based on comps, then chances are the success rate for FSBO homes would be more successful.
But here’s the problem. Sellers have an emotional tie to their home. They think that their house is actually better than it is. They want more money for their home because they feel their improvements are better. The problem is, most of these updates don’t have a high return. For example, the swimming pool that you spent thousands and thousands of dollars on? It won’t get you back a dime. The media room? Doesn’t mean much to 99 percent of the buyers looking at homes today. The high-end master bath spa? You won’t get back what you put into it. A new septic system? Buyers don’t spend more on a home for improvements they can’t see.
It has been discussed many times here that the NUMBER ONE thing you can do to sell your house is to price it right. Even an overpriced home represented by a real estate agent has a very slight chance of selling. But a property FSBO that is overpriced? The chances are just about zero.
2. Lack of Exposure
Gone are the days when all you needed to do was put a sign up in your front yard, put a few ads in the classified and your house had all of the publicity it needed. Today, it is required that your property have an active, strong presence on the Internet, as that is where 90 percent of all homebuyers start their home search. The top websites which gather the most traffic, are those operated by professional real estate companies. You cannot get around the fact that a good agent today not only has their own website, but an active social media marketing program that will generate traffic to your home.
If you don’t have the buyers making an appointment to see your home, then it won’t get sold. There is no comparison for the type of Internet exposure an agent can offer you that is not available for any for sale by owner site. And those sites that cater to FSBO sellers? Ask the average buyer if they look at these sites. Most, have never heard of them.
3. Buyers Want To Save Too
Buyers know that if you are selling your home yourself, you are saving on commission. Right off the bat, they will take five percent off the price of your home, so sellers usually receive low ball offers. Unfortunately, many sellers often get angry and have a difficult time negotiating with a buyer because their emotionally invested in the home and don’t take too kindly with a buyer who wants to buy their home at a deep discount.
4. Making Home Accessible
For those selling their homes on their own, it is necessary that they make their home available for every showing. That means, you need to be ready seven days a week throughout the day. If you have a full-time job, or if you travel frequently, then this would make scheduling appointments difficult. Buyers want to look at homes when its convenient for them, not you. If they are put off too much, they will look elsewhere.
5. Showing Home To Unqualified Buyers
Many people who look through homes are what we call “looky loos.” They just want to take a look inside your house to see what it’s like. Or, worse yet, they can’t afford your home but want to tour it anyway. Real estate agents don’t like to show homes to people they know their client can’t afford. Most buyers today need to be pre-approved and this is part of a realtor’s job as there is no point in having anyone visit your home if they can’t qualify. Therefore, as a FSBO, you want to make sure that only those that can afford your home have a walk through. Why waste your time?
Of course, selling a home FSBO does happen. Do your research and understand how important it is to set the correct price for your home and get the right market exposure directed to your target audience.