As someone who has sold two homes 'fsbo', I want to share what I think are common mistakes made by others trying to do the same. It comes down to three main culprits- a lack of marketing, patience and showcasing.
Ask any homeowner who has tried to sell 'fsbo' and they will tell you the biggest challenge is getting the word out. Let's face it, putting a sign in the front yard probably isn't going to generate the amount of interest you need. But this is exactly what a lot of fsbo's are hoping. Then if the sign doesn't work in a month, they call a realtor. You need traffic!
So what options do you have? There are several possibilities- two of which stand out the most. You can advertise using the newspaper and/or the Internet. In my opinion, the newspaper is extremely expensive, the information is difficult to find and the audience is very local. On the other hand, 80% of home buyers are already using the Internet to search for homes. Why not advertise where your audience is currently searching? FSBO websites, like www.northiowahobo.com/ offer lots of information and several pictures. Plus, people from all over can access the information.
Those fsbo's with the most success recognize good marketing requires variety. Take for example, one of my clients. She's trying to sell a home without a realtor. She's always advertising on my website because it's very affordable. But right before holding an open house, she advertised for a day or two in the local newspaper and she sent out Open House post cards to all the homes in the surrounding neighborhood. Her Open House attracted 140 people on a cold, rainy day!
If you're really serious about selling 'fsbo', it's going take an upfront investment to market your home. While it may cost money in the beginning, it won't compare to the cost of a realtor's commission fee after the sale.
The second mistake I see fsbo's making is giving up too soon! Patience is hard to come by when you want to sell a home. According to the latest statistics, the average home for sale in Mason City, Iowa took 181 days to sell with a realtor. That's six months! Of the homes that have sold on http://www.northiowahobo.com/ the average sale period is four to six months. A few have sold within a month or two and the longest sale period was seven months.
One of my favorite clients was a sweet older woman with a beautiful house. After one week of trying fsbo, she told me she hadn't had any calls so she was going with a realtor. I told her she had to do what she felt was best. Let's face it, selling FSBO is not for everyone. The ironic thing is, her home was still for sale 11 months later with a realtor.
The third and final mistake I see being made by fsbo's (and any homeseller for that matter) is the house simply isn't ready to show. Clear the kitchen counters. Clean the closets. (I think the average person should get rid of at least 60-percent of what is in their closets.) Wash the windows. Get rid of the clutter- which includes picture frames and knick-knacks on tables, extra furniture and side tables. (One living room does not need four LazyBoy Recliners and two sofas.) Get the crud out from around the sinks and toilets. Fix things that aren't working- closet doors that don't open, door knobs that aren't working. And while we're at it, clear the yard of all those ornaments. They may be precious to the homeowner, but when you're selling a home, you want it to appeal to the homebuyer. And finally, freshen the air. When a homebuyer walks into the home, first impressions often come through the nose.
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As a fellow for sale by owner service located in Massachusetts, we find that incorrect pricing is generally the biggest culprit in a home not selling.
We recommend obtaining a professional appraisal and using the results to set the asking price. In a seller's market, this price may be elevated somewhat to provide negotiating room. In a buyer's market, it is much more difficult to pad the price as it may not pass a lender's scrutiny. The older woman who jumped ship early could have been overpriced and remained overpriced for several months. In the end, her lack of patience (and perhaps proper pricing) cost her much more than time.
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