You may think that this topic does not apply to you, but most people will either try to sell their own home at some point, or have a friend who will, so I do think it touches most of us.
The #1 reason a For Sale By Owner (FSBO) will not succeed is NOT because of the MLS, and their lack of access to it.
The #1 reason a FSBO will likely fail is NOT a lack of advertising, although that certainly plays a role.
No, the #1 reason most FSBO's do not turn out well is because selling your home that way produces a lack of CONSUMER CONFIDENCE. That is right, the main reason your home will not sell FSBO is because consumers have no confidence in your product or how it is being sold.
They have no confidence that the paperwork was done right.
They have no confidence you have priced it right.
They have no confidence you will be easy to work with.
When a buyer is driving around a neighborhood and they see a RE/MAX sign or a Coldwell Banker sign in the front yard, they know the transaction is most likely being guided by a professional.
They can make a reasonable assumption that the property has been priced due to analysis and they know that paperwork and procedure has likely been followed. In other words, buying the home should be fairly easy.
When the same buyer, pulls in front of your home with that familiar red FSBO sign in the yard, they have learned nothing!
In fact, if there is a perception that is immediately generated, it is one of two things; first, that you, as the seller, are cheap and do not want to pay a commission. A cheap seller, means that negotiating with you will be extremely difficult. This is an obvious turn-off to the buyer.
Second, the buyer views this as an immediate discount in their future. You may think you are pricing your home accordingly after figuring in the money you saved by not paying a Realtor, but buyers look at it differently. Most buyers will see your price and immediately knock 6 or 7 percent right off the top, because in their minds you should be paying this fee anyway. It happens people, it is just a reality of how people think these things through.
Another HUGE aspect of why it is difficult to sell is the showing process. Buyers, in general, are not comfortable at all, with the seller showing them the home.
A buyer needs to feel free to go through their buying decision in a natural way, and that includes talking through objections. As an example a buyer will say something like "This room is really ugly, but I guess we could paint it" if I am on tour with them. This is an important step that buyers take to justify a purchase. They cannot do that with you present. They just don't feel comfortable putting your home down in your presence, so what happens is the buyers simply want the experience to end so they rush through and move on to another home.
Granted, there are some FSBO success stories, but about 7 out of 10 end up switching to an agent. Now you have some perspective on why this happens.
RE/MAX Real Estate Center
P: 515-864-6444 (call or text)