When these houses actually get interested customers, the owner is likely to end up accepting a lower price than a real estate agent would have—either because they are in a hurry and growing desperate, or because they simply lack the negotiating skill and experience needed to successfully navigate such an involved process. Overpricing at the start only to end up accepting a final selling price well below the real market value of a property are two of the most common mistakes people make when selling FSBO. Many buyers don’t trust FSBO and prefer to work with a real estate agent. With a transaction as costly and important as selling and buying a home, trust is of paramount importance. Sometimes out of fear of getting scammed, sometimes just because they think it will offer a smoother bureaucratic process, buyers usually prefer to work with real estate agents. The professionalism and experience of a high-performing agent inspires confidence in buyers that they’ll be able to sail effortlessly through the sea of paperwork that comes with the real estate market. This puts FSBO homes at a clear disadvantage, no matter how you look at it. As the cliché goes, after all, it is a buyers’ world out there.
What does all this boil down to?
At the end of the day, with all factors considered, FSBO can be a great strategy—but only for good negotiators who have great real estate trading skills and a lot of market knowledge, are in no hurry to complete the sale, and are willing to dedicate a considerable amount of time and work to the process.
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