FSBO Guide - Authorify

$100,000 and then had to spend $30,000 getting out of the contract . Another tale reveals how a Realtor® made a seller $50,000 more than she had expected when pricing her home. ● Unqualified Buyers Few FSBO sellers understand — or have the patience to deal with — complex paperwork. This leaves them vulnerable to serious legal mistakes, scams, and outright fraud. As any Realtor® knows, it’s important to qualify buyers early in the sales process. An open house — especially a higher-priced one — tends to attract lots of curious folks who have neither the means nor the genuine interest to purchase the property. Besides, buyers are usually more comfortable disclosing their financial information to a real estate professional than confiding in a FSBO seller. After all, buyers are wary of scams, too, and they’re more likely to trust a licensed professional. Do you think the average FSBO is covered by errors and omissions insurance? Guess again. Add the cost of potential litigation to a FSBO sale, and suddenly the money “saved” by avoiding a Realtor® commission doesn’t seem like such a bargain. Given all the facts, it’s hard to believe anyone tries to sell FSBO. Amazingly, recent statistics indicate that 9% of US homes are listed as FSBO every year. A lot of people try FSBO just to see if they’ll get lucky. Those are some of the easiest for you to list. Key Takeaways 1. Most FSBOs do a horrible job selling their houses because they lack expertise and resources. 2. Owners usually underestimate the challenges of selling a FSBO house. 3. Often, FSBO sellers are reluctant to perform needed repairs, maintenance, and cosmetic enhancements. 4. On the other hand, industrious sellers often waste money on misguided “improvements.” 5. FSBO sellers lack access to resources for setting realistic prices. 6. Realtor®-listed homes are easier for other agents to show, which increases exposure to buyers. 7. The average FSBO home sells for $46,000 less than an agent-listed home. 8. The complexity of paperwork can result in sellers being victimized or exposed to greater liability. 9. FSBO homes account for 9% of annual listings, presenting an enormous opportunity for Realtors®.