90% of For Sale By Owners end up listing their home with a professional. Even the founder of ForSaleByOwner.com, hired an agent to sell his condo in Chelsea. The 10% that were successful most likely did not make these mistakes. Here are some Common FSBO Mistakes.
1. Wrong Pricing – This is probably the worst thing that you can do. You need to find out what has sold in your area, and with an unbiased approach, compare your home, the location, condition, and current market in order to come up with a marketing price. This marketing price should not be more than 5% of what you expect the market value to be. To find out what homes have sold for in your area, you can do so for FREE here.
2. Not cooperating with real estate agents. The second oldest profession in the United States has remained due to the fact that we as real estate agents do provide a service. Because of that, most buyers searching for homes use a real estate agent. If you cut out cooperating with agents, you are losing a huge pool of buyers. Be nice to them, offer a commission if they sell the home. You can still save the listing side of the commission. Many real estate agents will contact you to list the home. If you want to shut them up, tell them that I am handling things for you as your consultant and to contact me to set up the showing of the buyer. They will leave you alone and if they call me, I will set up the appointment with you, no charge!
3. Getting feedback from people who have seen your home. As a real estate agent, I can be blunt with another agent and tell them the house smelled like cat, rooms were small, or the wall paper was awful. When a buyer comes through your home, they will not be honest with you. Let’s face it, someone that goes through your home that you have loved for possibly many years, will most likely not share with you what they did not like about the home. IF they did, that would be considered very rude, and most people are not like that. Getting constructive feedback is a powerful tool to adjust your marketing strategy. If everyone says they love your home, but no one has made an offer, this is what is most likely happening. To overcome this, let me follow-up for you. Send me the name, phone number, email address or whatever you have about the buyer and I will contact them to see what their honest opinion is. No charge!
4. Showing the home yourself. I have been doing this for over 17 years and one thing that has not changed is that buyers want to be left alone when they view homes. The worst thing you can do is hover over them and take them for a tour through the home. Buyers feel very uncomfortable when the owner is there and they hesitate to look in closets, cabinets, etc. Get out of the house or have a third party show the home for security purposes. Make sure it is not you! Have a family member, friend, neighbor, someone else do it. If you want me to show your home to prospective buyers, I would be happy to. No charge!
5. Financing a home is difficult these days and knowledge of the potential mortgage products to finance your home is important. Team up with a mortgage officer who can show the buyer what they will need out of pocket, and what their payments will be. If you need a recommendation of mortgage representatives that will do this for you for free, just let me know.
If you would like me to help you in any way, just email me at Michael@MichaelsHomeInfo.com or call me direct, 215-275-2009.