FSBO: “I’LL JUST DO IT MYSELF!” 3 REASONS THIS IS A BAD IDEA
September 10, 2016 | Richard Sites
There is an old saying, “If you want something done right, do it yourself”. Now, I can understand the logic here since delegating & supervising is an art form but how do you know which things you can do better than a professional?
You can represent yourself in court, but I believe Lincoln said that a person who does this has a fool for a client. In fact, no attorney represents themselves in court. If they don’t do it themselves why would you?
So why, in the complicated and highly emotional business of selling your house, would you attempt to do it yourself?
There are 3 reasons.
Saving a Commission
This is the main reason people try to sell their homes themselves. And I know the professional service fee on a home sale is large which often leads sellers to try and avoid paying it. And without proper education by the real estate agent on what to expect, sellers may think they are really paying for nothing.
A helpful exercise when listing a home is to discuss what sellers expect from their agent and what they are really getting. Agents should thoroughly explain the sales process at the time of signing. I believe most sellers think when they hire an agent to list and sell their house they are picking the agent with the most buyers. This is a very bad choice and you can read why on my blog about the 8%. If you think that shortly after signing a listing agreement your agent will begin to bring a steady stream of buyers through your house you are mistaken which leads to the last reason below.
I am having conversations with a frustrated seller right now and this is the main reason: No buyers. He has listed his house with 3 different agents over several years without success and is frustrated that none of them brought a buyer to him. Actually, he turned down an offer which was 98% of the list price when the house was first listed. The average percentage of sale/list price is about 94% so he turned down a great offer. Now he is going to do it himself. I’ve already seen a glaring mistake in his comprehensive FSBO listing that I think will cost him any potential sale.
Why didn’t it sell? In this case I think the home is overpriced and I can tell from his FSBO efforts that since he has lived here for 20+ years he thinks it is a “special home”, but listen, buyers do not care how special your home is. He has prepared a list of 90+ reasons it is “special” but buyers still don’t care. They may not even like the house and only want the lot location.
Homes don’t sell when the seller takes over from the agent and try to get more for their homes than buyers are willing to pay. Less than 1% of sellers are successful at doing it themselves and it just makes the situation more frustrating. As I have said over and over, spend time looking for the right agent, someone you trust, and they will get the job done. You can also see The 3 Most Important Questions to Ask When Hiring an Agent on My You Tube Channel.
If you are interested in having me get your house sold quickly and smoothly or just want to “check me out” you can contact me at 561.762.4073. Remember: Hope is not an effective selling strategy!