Why FSBO Homes Get More Buyer Interest
As the real estate market cools down, attracting buyers is becoming more difficult. FSBO sellers, however, certainly have fewer problems with this issue.
Why FSBO Homes Get More Buyer Interest
As the red hot real estate market cools off, homeowners are finding the demand for their properties slowing down to traditional levels. No longer is there a stampede to make offers on homes. As this evolution occurs, one area of the real estate market is less traumatized than others – the FSBO market. For a variety of reasons, a FSBO property priced appropriately will typically receive more interest than those listed by agents. There are a few reasons for this.
As a FSBO seller, it is important to understand that people assume things about you. They assume you are unsophisticated. They assume you can be had. Most importantly, they assume they can get a deal on your property. Is any of this true? Not really, but you should not complain. These assumptions are going to help you move your house quickly.
Real estate investors love to hunt for and buy FSBO properties. This occurs because the investor understands that you have room to move on the price without an agent involved. They also assume that the property may have more potential than you realize as a FSBO seller, so they can buy the property and flip it for a nice profit. Regardless of their intentions, rest assured real estate investors will be knocking down your door if you list your property for sale by owner.
With traditional buyers, the situation is not much difference. They perceive a FSBO property as one that has a lot of potential movement on the price. They also often feel they are going to get a deal on the property. With these assumptions being made by buyers, you need to consider you approach as a FSBO seller.
Many FSBO sellers go out of their way to make it clear to potential buyers that they know what they are doing. A better approach, however, might be to play upon the assumptions. If a potential buyer thinks they can take advantage of you, why disavow them of this assumption? The point is to sell the property. As long as you know your bottom line and stick to it, who cares? Let them think they are getting a deal. When you walk away with more than your bottom line, who will be smiling then? I am not suggesting you do anything nefarious, just leverage your position to get the best deal you can for a poor, old FSBO seller!
As the real estate market returns to a more typical pace, sellers need to figure out how to attract buyers. Going FSBO is definitely one way to do it.
Raynor James is with FSBO America - save money when selling and buying with FSBO homes for sale by owner.
Andrian Curshen said,
November 10, 2006 @ 6:00 pm
I am a Realtor licensed in the state of New Jersey.
I found your comments interesting but slightly naive. In fact the FSBO market is more traumatized than other areas. With a surfeit of unsold homes on the market it is exceedingly difficult for private sellers to sell their homes. Firstly, most private sellers have inflated ideas of the value of their homes and price them way above current market value. I have much direct experience of this unfortunate situation. I know of private sellers in my area who haven’t sold their home after more than 10 months on the market because they refuse to accept that prices have dropped significantly. As a result they have lost as much as 15% on the selling price of their home already plus the loss of appreciation on the funds they might have had if they had priced their home correctly in the first place. Setting the correct market price when putting a home on the market is critical to the success of the venture. No one knows better than a Realtor how to correctly determine that critical price point. Owners have intense emotional ties to their own homes and are generally not sufficiently objective enough to establish the proper price point. A Realtor has no such emotional pressures and will establish the correct market price in an objective manner by comparing a home with others in the same market area. In fact most real estate brokerage firms have programs designed especially to ensure the establishment of correct market pricing. Private sellers generally do not have the resources and expertise to sell their homes on their own, especially in such a difficult market as this, and that is a fact. Study after study reveals that over 75% of private sellers eventually give up and turn to a Realtor to sell their home simply because selling homes is what Realtors do and have the resources and expertise to do. In addition study after study reveals that homes sold through Realtors sell for more than 15% more than private sales. Therefore, even allowing for a 5% or 6% fee sellers almost always end up far better off financially when employing the services of a professional Realtor. Online sites that cater to private sellers are in it purely for the money and care little whether the homeowners sell their houses or not. They take a fee whether the home sells or not and make money from the ads on their sites too. I have never seen a FSBO site which gives a percentage of homes sold against those that haven’t, no doubt because if they did no one would patronize the site anymore.. Neither do the owners/operators of the site ever meet or even speak with a seller or buyer. Realtors on the other hand are bound by a strict code of ethics dictated both by the NAR and state laws which mandates a fiduciary duty to ensure that sellers and buyers receive or pay proper market prices. They are in touch with their buyer and seller clients constantly, advising, guiding and holding their hands. I have never met a Realtor who didn’t work his or her tail off to ensure that their customers gor the best possible deal in the least possible time. Selling or buying a home is a highly complex procedure, contrary to what the online sites will tell you, and it should not be entered into lightly. Serious legal matters must be dealt with by a lawyer, medical problems must be dealt with by a doctor, financial matters are best handled by a professional accountant, why should complex real estate matters not be dealt with by real estate professionals? I would bet my skills at selling real estate against any non-professional homeowner.
spyware doctor key said,
July 18, 2007 @ 11:20 am
spyware doctor key…
I do not 100% agree with you but i have your site bookmarked anyway because i want to learn more about other people and thier view on this
Greets…
Priced Condominiums said,
February 7, 2008 @ 4:40 pm
Condominiums - Sharing the City…
Though condos can built anywhere, perhaps one of the most appealing things about them is that they afford people a high quality lifestyle in expensive high-density areas. Million dollar luxury condos aside, condominiums in desirable areas are typically…