There are many things to consider when deciding to list a home for sale regardless of how you plan on selling it; For Sale by Owner (FSBO) or selling with a Realtor. Below are a few of the reasons why a FSBO could fail to sell.
The thing that matters the most to the owner selling a home is usually the price. How much can I get for my house? Before answering that question, take some time and do some due diligence. All the necessary tools are available online. Look at similar homes in your city and what they are selling for to get a feel for the market. If your property isn’t priced competitively no amount of marketing in the world is going to sell your home. Regardless of the way you decide to sell your home, by owner (FSBO) or through a Realtor. All you’re doing is advertising to tell potential buyers that your house is overpriced and that you are not very serious about selling. If you’re not getting at least three showings within the first couple of weeks or so than that’s most likely the market telling you to look at the price.
The other important factor is the Commission that is offered to the buyer’s broker. If a For Sale by Owner (FSBO) does not offer any commission, or a very small commission, a lot of buyer’s agents will not want to work with that seller because in all reality that means they are working for free or less than what they could make selling another home. The average commission amount for most homes, whether listed as a FSBO or with a traditional broker’s office, is 3%. Typically, a higher end home can slide through with a smaller commission and that’s because the buyer’s agent will make enough based upon the price of the house. Something else to keep in mind is that most real estate agents have to pay part of that commission to the broker’s they work for so it is very important that you offer a 3% commission to the buyer’s agent.
Property deficiencies, real or perceived, are the other things to keep in mind when deciding to put a home for sale. What we mean by this is; a property could be too close to the road for a buyer’s liking, or a buyer may not like if a property needs updating (kitchen, bathroom, etc.) The only way to make a house with these issues more attractive to a buyer is to lower the price as a means for the buyer to look over the perceived deficiencies or short comings.
Take your time and do some research and talk to people in your area before listing a home for sale by owner. The little time you spend on research could be the deciding factor on how much you make in your house as well as how fast you are able to sell it.