n the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their
home by themselves. That's because most people just give up because they don't
realize from the beginning the difficulty and complexity of the job ahead. But that's not the only
reason. Here are the seven most common mistakes FSBOs make when selling their home.
1. Failure to price a property at what market conditions will bear.
The number one reason that most FSBOs don't sell their homes is that they price it too high. Many
start counting the money they're saving on commissions and how much their sale will net.
If your house is priced higher than other comparable houses in your market, you will not get the
offers you need to sell!
2. Underestimating the time, energy, know how, ability and effort needed to sell a house.
One of the keys to selling your home effectively and profitably is complete accessibility. Many homes
sit on the market much longer than necessary because the owner isn't available to show
the property. Realize that a certain amount of time each day is necessary to sell your home.
3. Not being prepared to deal with an onslaught of buyers who perceive FSBOs as targets
for "low balling".
Another challenge of selling a home is screening unqualified prospects and dealing with low-ballers.
It often goes unnoticed that much time, effort and expertise is required to spot these
people quickly. Settling for a low-ball bid is usually worse than paying any type of professional fee or
commission.
4. Lack of knowledge about financing options for the buyer.
Are you prepared to answer questions about financing? One of the keys to selling is having all the
necessary information the prospective buyer needs and to offer the buyer options. Think about the
last time you purchased something of value, did you make a decision before you had all your ducks
in a row? By offering financing options, you give the homebuyer the ability to work on their terms.
You'll open up the possibility of selling your home quicker and more profitably. It's critical that you
locate and establish relationships with a network of financing experts that will help you accomplish
your goal profitably.
5. Not fully understanding the legal ramifications and all the necessary steps required in
selling a home.
Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting
your state's disclosure laws. Are you completely informed of all the steps necessary to sell real
estate? If not, you may want to consider consulting with a legal or real estate professional.
6. Lack of experience in handling the legal contracts, agreements and any disputes with
buyers before or after the offer is presented.
Are you well versed in legalese? Are you prepared to handle disputes with buyers? It is always wise
to put all negotiations and agreements in writing. Many home sales have been lost due to
misinterpretation of what was negotiated.
7. Not contacting the necessary professionals... title, inspector (home and pest), attorney,
and escrow company.
Are you familiar with top inspectors and escrow companies? Don't randomly select inspectors,
attorneys, and title reps. Like any profession, there are inadequate individuals who will slow,
delay and possibly even cost you the transaction. Be careful!
Selling a home requires an intimate understanding of the real estate market. If the property is priced
too high, it will sit and develop a reputation for being a problem property. If the
property is priced too low, you will cost yourself money. Some FSBOs discovered that they lost
money as a result of poor pricing decisions. In the final outcome, these mistakes far
outweighed the commission they would have paid.
Lawrence Allen has over 15 years experience as a marketing
professional and a successful real estate investor. His
experiences with numerous real estate, marketing and finance
professionals has enabled him to develop a marketing system
and Ebook for people trying to sell their home on their own.
The For Sale By Owner (FSBO) Hassle-Free Home Sale System has
received many praises from real estate professionals and home
owners alike: http://www.fsbosaleshelp.com
http://www.homesolutionssandiego.com/fsbo.html
