For Sale By Owner, also known as FSBO, is a strategy employeed by home owners to sell the home themselves.  The reasons for using this strategy vary from person to person, but the biggest reason is typically a concern about the sales commissions.

The paragraphs below are a very hard look at the strategy and can help you avoid losing money.  It is a possibility that you can sell your home yourself and make some extra profit in the sale, however I encourage you to read this information to avoid falling into the FSBO traps.  If you prepare yourself against these pitfalls and keep yourself very alert to these obstacles, you have the best chance for profit and success!

Here are three of the major claims made by FSBO Sites.  The claims are followed by commentary on the claim's validity and then a "solution" to help you make the most money when you sell your home.

Claim #1:

Save commissions

There’s no way around it: whenever you work with an agent they get a cut of your profits. Calculate 5-6% of what you think your property is worth.  Put that money in your pocket.

This statement is sometimes true.  If you put a For Sale By Owner sign in your front yard and sell your Kingsland or St. Mary's home in two weeks and you have priced your home at its proper value, then you have saved thousands of dollars in commissions.  The problem with the claim is that it is a simple claim that takes nothing else into account.

Take the other facts into consideration, ensuring you guard against the pitfalls and you have given yourself the best chance for success.  Typically one of these three things happen:

1.) The home is priced too low and the seller gets an easy sale.  Only later do they find out that they lost money to a savvy buyer.

2.) There are buyers that actually look to buy homes listed by owner so they can make a low offer to a frustrated seller.  If they catch the seller just before they list with an agent the seller is vulnerable to do a frustration sale.  At this point the seller is very willing to negotiate the sales price on the home and sells the home for far less than it is worth, even getting less money than if they had paid the commission to an agent.

3.) The home is priced correctly but is not seen by enough buyers (many owners bought on a cul-de-sac to avoid the traffic and then wonder why no one sees the sign in their yard).  A frustrated seller that does not have nearly $3500 to properly expose the home to qualified buyers decides to hire an agent to get the home sold...not a misearble outcome considering the other possibilities.
 

Statistically, 9 out of 10 For Sale By Owner properties end up listing with an agent.  Also according to national statistics, the remaining 1 out of 10 sells for 16% less than a comparable home listed with a professional.  Knowing when to sell, how much to sell for, and when to quit before frustration takes over is how you will maximize your profit.

SOLUTION:  Make sure you know your home's value and then put your home on the market For Sale By Owner with a set deadline.  If you conduct the marketing for your self and find you have a buyer offering a reasonable price (no more than 5% off the homes value) within your deadline then you have a great chance for a FSBO success story.  If you reach your deadline without selling call me and I will step in to handle the marketing and sale of your home before "frustration" sets in.

Claim #2:

Less stress

One of the major advantages of selling a home for sale by owner is that you can set your schedule. You know when potential buyers will be coming to check out the place, and can allot time to prepare accordingly. There is no need to leave your own home every time an agent wants to show it. You no longer have to make sure the house looks in "show condition" at all times.

This claim is simply false.  You can set your own schedule no matter who or how you list your Georgia home for sale.  A Realtor will simply encourage you to make it easy to see your home because convenience matters to buyers that have a list of homes to see over a one or two day period.  Realtors also encourage sellers to not be home when the buyer arrives for the home sellers financial protection.  Home sellers, whether selling by owner or listed with a professional, can not help but tell prospective buyers everything about the home.  This is a bad, bad thing and comes across to buyers as desperate.  It is proven to either push the buyer away or inspires them to make a "low ball" offer.

SOLUTION: Make sure you keep your home presentable and available throughout the marketing campaign.  Have a trusted neighbor, friend, or family member available for showings because they don't have emotional involvement and won't create the desperate or pushy environment.  Make sure the designated person has access when you are at work or away from the home for any extended time.

Claim #3:

You’re the ideal agent

Who knows your home better then you? When showcasing your house to a prospective buyer, you know what the highlights are, whether it’s the perfectly finished basement or the beautiful landscaping in the backyard. 

Believe it or not, this claim is even further from the truth!  If you were to take a course on negotiating you would find that the course teaches you to always have a higher authority!  (Recommend Audio Course: The Secrets of Power Negotiating by Roger Dawson.)  By having a higher authority there is a barrier between the offer and the pressure to say yes.  This is one of the most successful strategies used by trained negotiators and you have probably seen it used by car salespersons...you know the "let me ask my manager" routine when you try to get a lower price.  These tactics and the people that utilize them are not doing this by accident - they are calculated, trained tactics.  When you put yourself in front of the buyer you have no barriers.  This is one of the primary reasons that For Sale By Owner Homes sell for 16% less than those listed with an agent (the other major reason is exposure/marketing).

SOLUTION: Create a layer between you and the buyer.  Either have your designated person (see claim #2) act as a negotiator or if you co-own the property make sure one of the owners (i.e. a husband or wife) is not around during the negotiations.  Then when the offer is made simply act like a car salesperson and say: "Great, I'll take this offer back to my husband/wife and see how he/she feels about it."

I realize this is a lot of information to digest, but I am confident that having this information will give you the best chance for success and profit.  Hopefully you will experience success quickly and know that you are getting top dollar for your home.  If you find yourself falling into the frustration category, please feel free to call me for a full marketing presentation.  I also encourage you to review the information on Superior Online Marketing for Home Buyers and Sellers where you will gain insite to how my marketing out-performs any competing agency strategies.