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FSBO Woes: Why It's So Hard to Sell Your Own Home?

For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who's already living in the home. These circumstances are the exception, not the norm, however. For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards. Here are five reasons why.

There Are Five Reasons Why A Property Sells.

  • Price
  • Accessibility
  • Terms
  • Condition Of Property
  • Marketing Ordinarily, it takes 6 to 9 weeks to sell a home. Some will sell in a few days and some may take several months. Buyers make their buying decision based on the comparison of logical and emotional appeal

    Sold within: Percentage of Homes
    1 Month 40%
    2 Months 7%
    3 Months 7%
    4 Months 20%
    5 Months 10%
    6 Months 7%
    7 Months 9%

    If your property isn't sold within 30 days, a price adjustment should be made!

    Statistics are based on National average of homes sold.

    If your home has just come off the market and hasn't sold, don't be discouraged. The reason your home did not sell may have nothing to do with your home or the market. In reality, your home may have been one of the more desirable properties for sale.

    So Why Didn't Your Home Sell?

    Last year almost half of the homes listed for sale never sold at all, and many sellers found that there was a tremendous amount a homeowner needed to be educated on to sell their home for top dollar in the shortest time period.

    Don't risk making the wrong choices and losing both time and money on your investment. Before you hire a realtor, know the right questions to ask to save you time and money.

    #1 reason a house wont sell Price

    Mary had interviewed three, agents. I then asked if all the agents had given her a written price opinion, which we call a comparable market analysis (CMA). She said yes. When I asked if all three agents had given her a similar price, her answer was typical. Mary said one of the agents told her she could get $20,000 more than the other two agents had quoted. The agent was so enthusiastic, believable and convincing that Mary really believed she could.

    What probably happened is the agent bought the listing by quoting Mary a higher price during her presentation, knowing that Marys house would never sell for that amount. The agent more than likely intended to wait a few months before convincing Mary to lower the price. Another problem might have been that she was reluctant to admit the market would not pay an inflated asking price. Marys situation demonstrates a valuable lesson for sellers: If one agent quotes you a significan!

    The higher price than the others, that agent is probably not the right one for you. The market doesnt lie, so each agent you deal with should arrive at a very close figure. If you list your house at higher than market value, when you finally drop to a more realistic price your house will be market-worn, which will probably result in a lower ultimate selling price.

    Lets say you list your house for $150,000 but its really worth $140,000. Buyers in the $140,000 range will never see your house because theyre not looking at $150,000 houses. They cant afford them. And $150,000 buyers will be comparing your house to others that are truly worth that price, meaning those houses will sell while yours just sits there. In fact many agents will show an overpriced house for comparison when theyre trying to sell their listings that are more realistically priced.

    Why do some owners overprice? Often its on their agents advice, which we just discussed. Another reason theyll do it is!based on past value. Assuming it appraised for $140,000 three years ago, theyll add an annual appreciation rate of three, four or five percent to come up with $150,000 or more. Makes sense right? But thats not valid reasoning. Ive never found any research to indicate that a home is guaranteed to appreciate.

    Your house is worth what todays market says its worth, regardless of what the house was worth one, two, five or ten years ago. Houses are just like stock. Hopefully they go up in value. Sometimes they come down. If you paid fifty dollars for one share of IBM stock two years ago and its valued at $30 per share now, would you expect to sell your stock at what you paid ($50) plus a profit? Of course not. Well your house is the same.

    A propertys value is determined by todays market, not by yesterdays value plus appreciation.So in my conversation with Mary, we discovered first of all that her house is priced too high. Thats the number one reason it hasnt sold after four months.

  • FREE Comparable homes that are listed in your area.

  • FREE Comparable homes that have SOLD in your area.

  • FREE Estimated Market Price for your home Sell Today.


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