COMMON FSBO MYTHS
Numerous myths and misconceptions surround FSBO (For Sale By Owner) endeavors, leaving many home sellers in Saskatoon hesitant to pursue this route. As a real estate agent, I've encountered a multitude of these misconceptions. Regrettably, had some FSBOs been aware that certain beliefs were improbable, they might have saved themselves time by opting to engage an agent from the start. Here, I aim to debunk the top 10 FSBO myths.
LISTING PRIVATELY IS FREE
Selling your home independently doesn't come without expenses. Effective marketing requires investment in quality resources like professional photography, polished videography, signage, and promotional materials, all of which incur costs. Furthermore, there are unavoidable transactional expenses such as title work and associated fees. Additionally, consider the significant investment of time required to manage the sales process, where your time equates to valuable resources dedicated to selling your home.
FBSO SELLERS ALWAYS WALK AWAY WITH MORE MONEY
It's a common misconception that FSBOs (For Sale By Owner) consistently result in higher profits. However, several factors may lead to FSBOs potentially leaving money on the table. Firstly, incorrect pricing by FSBOs could result in significant underselling, translating to thousands or even tens of thousands of dollars lost. Secondly, FSBOs may struggle to effectively market their homes to a broad audience, limiting exposure and potential buyer interest. Lastly, FSBOs may encounter challenges or errors during various stages of the transaction, including negotiation, which could incur additional costs or hinder the sale process.
YOU NEED TO BE A MARKETING MASTER
No, you don't necessarily require the marketing expertise of a skilled real estate agent. In truth, I've encountered numerous agents who lack effective marketing strategies yet still manage to make sales. It's crucial to recognize that homes are purchased by buyers, not sold by sellers.
However, where FSBOs often stumble is in understanding the law of attraction. It's imperative to attract potential buyers to your home. The more successfully you can draw in buyers to view your FSBO property, the greater the pool of options you'll have from the offers received. So, while you may not need to be a marketing guru to sell your home, understanding how to captivate potential buyers is undeniably advantageous.
IT'S EASIER TO SELL WITHOUT AN AGENT
This misconception couldn't be further from the truth. Home sellers often underestimate the considerable time investment required to successfully sell a home. Even with my expertise guiding the process from beginning to end, selling a home typically demands 30 to 60 hours of dedicated effort. Sellers must be prepared to commit this time to the endeavor.
Managing the sale involves a multitude of tasks, including marketing the home, fielding inquiries, coordinating showings, addressing offers and negotiations, managing inspections and appraisals, and handling any necessary amendments. It's a comprehensive process that demands careful attention and commitment from the seller.
PRIVATE SALES SELL FASTER
FSBOs are less likely to sell their home faster than if they had used an agent. A real estate agent can get your home in front of more buyers faster than you. Also, FSBOs are notorious for overpricing their homes which puts a chilling effect on the home early on in the sale process.
FBSO HOMES ARE PRICED HIGHER
Indeed, it's common for FSBOs to overprice their homes initially. Nonetheless, in today's era of abundant information, home sellers have access to data on nearby properties, enabling them to price their homes accurately. Therefore, it's inaccurate to suggest that FSBOs cannot effectively price their homes for sale. With some diligent research, they can confidently determine an appropriate listing price.
I'M THE BEST AT SELLING MY HOME BECAUSE NO ONE KNOWS IT BETTER
An often overlooked pitfall for FSBOs is the assumption that they possess the skills of a seasoned salesperson. Salesmanship is recognized as one of the most lucrative professions globally, and believe me, it's far more challenging than it appears. Simply being familiar with your home doesn't necessarily equate to knowing how to effectively sell it.
AN AGENT WILL PROVIDE ME WITH REQUIRED DOCUMENTS
As a real estate agent, I'm aware that I can't provide you with the documents necessary to sell your home. These materials are copyrighted and exclusive to licensed agents. FSBOs must understand how or where to obtain the correct documents to enable potential buyers to submit offers.
BUYERS WOULD RATHER WORK DIRECTLY WITH THE SELLER
Completely incorrect. Several decades ago, approximately 60% of homebuyers relied solely on their own agent. However, current research consistently shows that over 90% of homebuyers now enlist their own agent to safeguard their interests. Homebuyers today are increasingly hesitant to engage directly with home sellers.
FSBOS ARE LIKELY TO SUCCEED
Most FSBO sellers ultimately fall short in their attempts to sell their homes. Whether it's grappling with the demands of marketing, comprehending the intricacies of the sales process, or navigating the myriad events that unfold during a sale, many FSBOs eventually concede and enlist the services of a real estate agent.
For assistance from a trusted real estate advisor, contact me.
