What do most FSBO sellers do wrong that results in over 75% of them eventually listing their property with a Realtor? Good question. Let's see if I can shed some light on the subject.
1) Incorrect Pricing. Overpriced listings will simply not sell. Here in Biloxi we are moving towards more of a buyers market. In the past year selling a home was as easy as listing the home and waiting for buyers to beat down your door. This is no longer the case. People are smart when it comes to buying, they use Realtors who know the market. Did you? So why are you so scared to use one to sell? So now if the buyers Realtor sees you have your house overpriced they will steer their clients away from your property. Realtors work for THEIR clients best interests. That's on the off chance the Realtor drove past your house and saw your "For Sale By Owner" sign. Did you also know the most productive period during your listing is the first few weeks. Your home is new on the market and everyone is dieing to see it. Price it incorrectly and you won't even get a phone call, much less a visit.
2) Thinking Refinancing Appraisals are Market Value. The appraisal you got when your banker refinanced your house is tilted in their favor. Consider the motives that a mortgage banker might have for getting an appraisal slightly higher than market value, and you can begin to see why. Here's an example: My brother, who is also a Realtor in Tampa, refinanced his townhouse in Riverview and got a refinancing appraisal for $190K. Due to his expertise in, and knowledge of, the area he knows for a fact that no property has ever sold higher than 180 in his community. Think about it. You finance more money, they charge you more money right? Who is really winning? Not you, the bank. Only a professional, standing in your living room, looking at your home, can effectively tell you what the value of your property might be.
3) Limited Marketing. I know what you're thinking. Place a classified ad and hold an open house. Sorry, but that's not going to cut it. Statistics tell us that only 1% of homes are sold from open houses. And, only 3% are sold from classified ads. So, if you've done both, you've only given yourself a 4% chance of selling your home. You have to be creative and learn to market property if you want to sell FSBO. What's the trade secret? Market to Realtors, not buyers. Realtors will get the home sold.
Want to learn more? Please contact me at my email or by phone. Thanks for reading.
Sergeant Real Estate