Why Sellers Fail “For Sale By Owner".  Three Of The Top 10 Reasons & What To Do About It

In my years of involvement with the real estate industry I have seen “by owner” sellers succeed and I’ve seen them fail.  There are many reasons for failure, but three reasons keep coming up over and over and over:

1.     Overpricing the property:  “We can always come down in price” is the most dangerous and expensive strategy a home seller can possibly use, especially in a down market.  Price the real estate right the first time and it will sell and sell quickly.  Price it wrong and your real estate will languish.  It’s simple economics.  I always recommend a professional certified appraisal to help with pricing.  A professional appraisal is always better than a broker’s opinion and is always much better than your opinion. Remember, all an appraiser does all day long, every day is value property.  Not even real estate agents can say that.  Additionally, the appraiser is unbiased and the broker is trying to get your business. The market is flooded with overpriced broker-listed homes.  Just look at your own neighborhood and you’ll see what I mean.
2.    Failure to advertise properly:  Today, classified ads and/or signs alone are usually not enough.  You need to take advantage of every advertising venue you possibly can.  Additionally, have a marketing budget and a marketing plan.  A real estate agent will have those things.  You need to think like them.  By the way, if you’re using an agent and they don’t have a marketing budget or marketing plan for your home, fire them, NOW!  Additionally, a cheap, or hand made yard sign sends the wrong message to a buyer.  Buyers will ask themselves “if the owner skimped on a sign, did they also skimp on maintenance?”  Where you make your money selling privately is in the commission savings – not in how cheap you do it.  Our advertising packages are extraordinarily affordable, especially when compared to a 6% commission .  Our web sites received tens of thousands of page views every month.  Over 30,000 more buyers read our Homes Magazine every month.  Our signs are some of the most visible and recognizible in the Ozarks.  Plus, you get an attorney prepared sales contract, help with pricing, help with disclosures, help finding other service providers central to the home sale process and much, much, much more! 
3.    Not using the internet:  80% of buyers use the internet to shop for their next home.  80% of agent listed homes are advertised on the internet.  Only 17% of “by owner” sellers advertise their homes on the internet!  Do I really need to tell you that if you’re not on the internet, you’re missing the boat?   Why should I call on a classified ad that has no pictures, usually no price and only a brief, generic description which tells me virtually nothing about the property when I can jump on the internet and see multiple photos, virtual tours, expanded descriptions, full price details, etc.?   The internet is simply the most powerful advertising medium ever devised for real estate sales.  Period.  Internet Caution:  There are millions of FSBO sites on the Internet.  Most are like billboards in the dessert.  That is, nobody knows they are out there, especially home buyers!  Most of these sites offer Free, $10 or $50 or $100 FSBO “listings.”  Unfortunately, nobody will respond to your “listing” because nobody is looking at it.  Don’t sit by the phone waiting for their buyers to call after viewing these sites – you get what you pay for.  Some of the national Web sites claim high buyer traffic and listings but, on average, 75 percent or more of the homes they are showing have expired months or even years ago.  They leave the expired listings viewable to make it look like they have many “active” homes for sale.  Not only is this unethical, but in many states, including Missouri, it is illegal.  In reality, their number of active listings is very small.  Our web sites are kept current, active and accurate every day.  Our Web sites have hundreds of local, ready, pre-qualified buyers looking to buy in the Ozarks area EVERY DAY.

These three items are just some of the items we discuss in our "Succeed 'By Owner" Seminar.  To learn more about our seminar or to reserve a space at the next seminar, click here .   Ready to sell your home right now?  Click here to sign up online!  You can be online and selling in just a few minutes.  Want or need more guidance?  Call us, email us , or stop by our store and we'll be more than happy to help!