FSBO Guide - Authorify

● The Price Is Not Right Here’s another big disadvantage that FSBOs have. FSBO sellers usually take a hit-or-miss approach to pricing. Since they likely lack the resources to properly research properties, many FSBO sellers put their faith in unreliable statistics: ● Some falsely assume their property tax appraisal accurately reflects sales value. ● Many sellers rely on inaccurate, outdated websites and databases. ● Others thoughtlessly copy the asking price of a home in their neighborhood without understanding how it compares to their own. ● Some ignore the fact that prices have changed significantly since they bought the home. ● Many owners make pricing decisions emotionally, such as inflating the value market realities. ● Others take a relative’s advice or merely guess. Whatever the reason, poor pricing can prevent the sale of a FSBO for much longer than anyone would like. ● Realtors® Sell Houses for More FSBO homes simply do not get as much interest from buyers, at least compared to homes listed with a Realtor®. It might not seem rational, but it’s true. Here’s an example of a FSBO I listed a little while ago. The home had been on the market for three months at $220,000. Three or four people had looked at the house. All of them had told the seller that it was overpriced. Some had bluntly stated that the house was a rip-off at $220,000. I put it on the market for $240,000. Why? The house was worth it. It sold in about three weeks for that price. What made the difference? When a house is listed with a real estate professional, it’s easy for other Realtors® to show it. More showings = a higher sales price. According to the National Association of Realtors®, the average sales price of a FSBO home is $184,000. By contrast, the average sales price of an agent-listed home is $230,000— a difference of $46,000. The internet is replete with stories about FSBO sellers who’ve mispriced their homes with disastrous results. I read about a Denver FSBO who undervalued his home by more than because they’ve put so much effort and love into the house. ● Some base their price on how much they need to clear from the sale, ignoring