It pains me to witness the real cost of an uninformed Strategy . . .
FSBO = “For Sale By Owner”
Miscue = (in billiards) a shot in which the player fails to strike the ball properly with the cue.
Bless their hearts!
Some folks who choose to sell their houses themselves (without hiring a Real Estate Sales Professional) do OK . . . Most don’t!
There’s a good reason . . . Selling houses is not their expertise, and the process of preparing, marketing , and selling/closing a house can be complicated.
Trained Real estate sales professionals know the market and can tailor a marketing strategy that WORKS to fetch the Home Seller the most amount of money with the most favorable terms.
We REALTORS don’t mind working with FSBOs when we have a Buyer who might be interested in Buying their house, but there’s a problem that makes a successful transaction with a FSBO improbable.
Seriously – Through the years, I have shown many Home Buyers MANY FSBO “Listings” and have had VERY FEW of those showings result in a sale.
Never have I steered any client away from an FSBO listing . . . that would be unfair to my client who should have the opportunity to view any and ALL available listings in the area of their choosing.
So – Why would so few Buyers choose to buy the FSBO and almost ALWAYS opt for the house listed with a REALTOR?
The answer is simple:
FSBO Strategic Miscue
My view is that this is a result of the FSBO Cutting off the nose to spite the face.
For whatever reason, these folks have decided to sell their house without hiring a professional. Many will say it’s to save money . . . and some will admit to a dislike of Real Estate Sales Professionals (perhaps fostered from an unpleasant prior experience).
The sad irony is that they seldom save money.
The statistics consistently show that FSBOs net LESS money than they would have had they hired a Real Estate Pro.
What’s missing is an effective strategy.
FSBOs I see in the market are often over-priced (most) or under priced (Few).
The overpriced ones simply don’t sell . . . the underpriced ones sell quickly and the blissfully ignorant FSBO closes leaving THOUSANDS of dollars of their equity on the closing table.
Pricing isn’t the only issue . . . Marketing strategy can be a killer also.
Do you notice anything weird about the sign?
Yep! It says “Lot for Sale!” and has no phone number – only an email address.
While walking my dogs, I have seen a variety of signs in the yard for over 6 months.
6 months is a LONG time for a house to be on the market in my area because there’s an egregious shortage of houses for sale.
This owner has tried to sell everything BUT the house they want to sell. For several months, they were selling something that wasn’t there . . . a custom house in the $Million range. (It’s still listed that way in the MLS, but the sign is gone)
That apparently didn’t work out, so now they have decided to call it a “Lot” because they’ve likely heard that Builders in the area will pay good money for a lot so they can divide it and build 2 houses or one BIG house.
Curious – I contacted the owner. The response was very curt – “ABSOLUTELY NOT INTERESTED IN LISTING WITH A REALTOR – $400,000.”
Well – I wasn’t soliciting the listing, but I sure learned quickly that this owner has no interest whatsoever in dealing with a REALTOR.
The house sits on a nice acre lot and is 1800 SF with a FULL unfinished basement. I have not been inside, but it appears to be in reasonably good condition.
My cursory assessment is that if this FSBO would simply sell what he has (a reasonably nice house on a great lot in a great neighborhood), he would likely sell it relatively quickly for $400,000.
THIS is a a textbook case of FSBO Strategic Miscue.
I’m not sure I can do anything for this Seller, but perhaps I can help other FSBOs avoid similar mistakes by learning vicariously through this example
What EVERY house for sale “needs” in order to sell for top dollar with best terms is a solid STRATEGY.
I’m a Real Estate Strategist, and it just KILLS me to see flawed strategy in my field of expertise.
If you’re considering selling or Buying a house. connect with me.
If you’re a REALTOR anywhere in Middle Tennessee interested in developing a strategic advantage for your business, connect with me, and let’s talk about Pareto Realty.
No to Miscues!