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Real Estate Articles, Selling Real Estate, Buying Real Estate
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Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own!
Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own!
Copyright © 2004 Lawrence Allen
The For Sale By Owner (FSBO) Hassle-Free Home Sale System,
http://www.fsbosaleshelp.com
In 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.
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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: www.fsbosaleshelp.com.
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