usually tap into. This more restricted support structure also contributes to the house spending more time on the market before selling, further inconveniencing the owner. FSBOs are usually overpriced—but still end up selling belowmarket price. Very few of the owners who opt for FSBO have extensive knowledge of the housing market or finely honed skills in the real estate trade. Between that and the emotional factor of a homeowner’s bias, combined with a natural desire to profit from the sale, causes owners to overprice their homes. Overpricing frequently scares off potential buyers, leaving the house on the market for, yet again, a longer period—which can be a real disadvantage to those who want a fast sale or actually need the money. 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.
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