CHAPTER 1 Is FSBO Right for You?
WHY SOME PEOPLE SELL THEMSELVES
We live in a DIY world. We swap out toilet flappers instead of calling a plumber. We Google “red spots on neck” instead of calling a doctor. And, sometimes, we market and sell our own homes—For Sale By Owner (FSBO)—instead of using a real estate professional. Sure, doing things yourself can save you money. But unless you know what you’re doing, you could flood the bathroom, mistake hives for measles, and—this is my biggest fear for you—put a house on the market in the wrong shape, at the wrong time, and for the wrong price. The result is a low sale or—gasp!—no sale at all. Sure, FSBO listings can save you some real estate commissions, typically 3%, which is nothing to sneeze at. But, as I hope to show you, FSBOs can be penny-wise but net/net foolish. Here are some stats to chew on, thanks to the National Association of Realtors®’ 2016 Profile of Home Buyers and Sellers. • Only 8% of home sellers in 2017 were FSBOs—the lowest figure since 1981. • FSBOs typically sell for less than homes marketed by a real estate professional. A 2017 study by Collateral Analytics showed that the price of an FSBO sales is about 5.5% lower than Multiple Listing Service (MLS, agent assisted) sales. • Most FSBOs are bought by friends and family of the seller.
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