Ten reasons not to Buy/Sell FSBO

I’ve had many experiences with a FSBO and none have been good. I want them to be, but I find, beyond this list that there are serious problems. For starters, they over price the home and have convoluted reasons why this is the right price. For starters, you could put in $100k in upgrades that you think will now increase the sale price to $100k. It’s not that kind of math! There are many articles that will tell you the percentage you can expect to get, or the return on that investment and none are 100%, even kitchens return about 80%. But, there are unwritten returns, for example, your house will sell faster and be more desirable. Recently a house was priced about $70k over any other house in the neighborhood. So, it’s over priced, by far, but this FSBO believed he should get every penny back and flat out rejected my clients offer. I’ll wait for him to come to his senses. For starters, with no comps, this will never appraise, even if he did get asking price. The most important aspect is the buyers, they are educated, have the ability to find other houses in that price point, and are very smart consumers. That house is now sitting on the market, but he didn’t want to open a conversation with me, even though I was the only one with an offer on the table. He has no one giving him sound advice, so his house will sit. My clients will move along and find something else. Here’s a nice list of solid reasons you don’t want to FSBO.

1. Lack of experience: Selling a home is a complex process that requires knowledge of the market, legal requirements, and negotiation skills. A FSBO (For Sale By Owner) may not have the experience to navigate these challenges effectively.
2. Limited exposure: A FSBO may not have the same resources and networks as a professional real estate agent to promote their property to potential buyers. This can limit the number of people who see the property and ultimately reduce the chances of a sale.
3. Pricing issues: A FSBO may not have the same knowledge of the local market as a professional real estate agent, which can lead to them pricing their property too high or too low.
4. Difficulty handling paperwork: Selling a home requires a lot of paperwork, including legal documents and disclosures. A FSBO may not be familiar with the paperwork required or may make errors that can lead to legal complications.
5. Lack of professional representation: A professional real estate agent can provide guidance and representation to both buyers and sellers in negotiations, paperwork and inspections.
6. Limited marketing and advertising: Professional real estate agents have access to marketing and advertising resources that can help promote a property to potential buyers. A FSBO may not have the same resources and may not be able to effectively market their property.
7. Limited knowledge of legal requirements: A FSBO may not be familiar with all the legal requirements related to selling a home and this can lead to mistakes that can cause problems down the road.
8. Limited negotiation skills: Professional real estate agents are trained negotiators and can help buyers and sellers come to an agreement that is mutually beneficial. A FSBO may not have the same skills and may struggle to negotiate a fair deal.
9. Limited ability to handle contingencies: A professional real estate agent can help buyers and sellers navigate contingencies such as inspections, appraisals, and financing. A FSBO may not have the same knowledge and experience to handle these contingencies effectively.
10. Limited ability to handle difficult situations: Real estate transactions can be complex and difficult to navigate, and a FSBO may not have the same knowledge and experience to handle difficult situations that may arise during the buying or selling process.