5 Reasons FSBOs Fail in a Fast-Moving Market

5 Reasons FSBOs Fail in a Fast-Moving Market

If you’re thinking about selling your home, you’ve probably looked into the For Sale By Owner (FSBO) route. And why not? You’re accustomed to doing things yourself. Your friends might even consider you a professional DIYer.

And as a DIY pro, you actually do your research—meaning you are sure to come across article after article on why you shouldn’t go the FSBO route (shared by real estate agents who just want your business, no doubt).

Not to mention, you’ve got a seller’s market on your side. You’re probably more than capable of selling this house. Why not cut costs and save on commissions? What could go wrong?

As self-made homeownership experts, we understand the desire to do it yourself. We’re not here to fish for your business, but we do want to make sure you have all the facts before diving head-first into one of the more impactful decisions you’ll make in your life.

Even in fast-moving markets like this, there are five reasons in particular why you should think twice about listing your home on your own.

#1. The Distribution Problem

Most people who list their own homes don’t realize that they have to expose them to enough buyers to create a frenzy for them. Even in a hot market, FSBOs may not get the reach they need in order to be exposed to the right number of buyers.

#2. Marketing

This means where the channels are, which websites the house is on, where it’s being advertised, how it’s being exposed to buyers, and its presentation (e.g., pictures, videos, tours, and everything else a team like ours offers). We’ve found that if a home goes live without quality pictures, it will get passed over. It will get a ton of views, but no showings. The market is not a free-flowing river of information. Just because a home is available doesn’t automatically mean buyers are notified of that fact or understand what they need to know about the home. There’s so much information buyers are bombarded with these days; your home has to be presented in the right light front the moment it goes live on the market.

#3. Condition

Photography is one side of a home’s presentation—condition is the other: how it looks, how it’s staged, etc. Sometimes this requires small tweaks. My team and I always consult our clients about condition tweaks that could generate a higher sale price or a quicker sale. Sometimes small condition issues can cause a slowdown in your home sale. Part of the reason why is that HGTV has made us a little superficial, to the point where we expect all homes to look great when they’re on the market.

#4. Dealing with the Buyer Directly

When buyers and sellers talk directly, emotions can run high. This can leave each side frustrated and disgruntled with the other and cause sales to fall apart. Licensed real estate professionals, whether an agent or investor, often act as a buffer between buyers and sellers and help keep contracts together.

#5. Pricing

This is probably the most obvious reason, even though it doesn’t feel like it’s the most obvious. Even in this fast-moving market, you can demand any price you want. We see plenty of homes sit on the market for days on end or come off the market because they weren’t priced appropriately. There are several pricing strategies your home can apply to. It’s not just a matter of whether to price low or high. It’s about pricing in a way that’s appealing to buyers and will generate the most online views and showings.

If you’re still set on going For Sale By Owner, great! Now you’re armed with more information (and as a result, more confidence).

If you’re already feeling a little overwhelmed, then this might not be the time to put your DIY skills to the test. And that’s okay!

Just because a home is available doesn’t automatically mean buyers are notified of that fact or understand what they need to know about the home.

Just picture this…

It’s Thanksgiving. You and your loved ones have taken the time out of your busy schedules to come together. You’re not one of those families participating in a 5-mile turkey trot, but you enjoy the annual hikes your family takes on Thanksgiving Day; it’s a chance to unplug, unwind, and spend some quality time together.

You’re nearing the end of the hike, feeling calm and refreshed. Next thing you know—BOOM. You’re on the ground. You tripped over a tree root hidden in the brush and sliced your hand trying to catch yourself. It’s not the end of the world, but it’ll definitely need stitches. You make your way to the nearest hospital because that’s the natural next step.

You didn’t stop to call ahead, check the hospital’s availability, or make sure the hospital was even open. Why? Because accidents can happen anytime, anywhere. Thus, the reason emergency rooms run 24/7.

This is a natural expectation you have: even on Thanksgiving, you know there will be a medical professional on call to stitch you up. You don’t even consider trying to do it yourself! Why would you when there are much better options out there, even if it costs you something?

The obvious answer is this: the benefits outweigh the costs.

When you work with the right professional, you’re investing in your assets. Not sure if you need stitches? Either way, you’ll probably end up getting it checked out because you don’t want to risk unnecessary scarring or infection.

The same can be said for your home sale. The majority of homeowners choose to work with a real estate agent because property owned is one of your biggest assets.

Interested in protecting your assets? Choose what’s best for you! We will run the numbers and go through everything in detail. Our goal at Helping Hands Home Advisors is to inform you of every step of the process with complete transparency. Our job is to make sure you feel confident in deciding to sell your DFW house. Call Helping Hands Home Advisors at 214-466-6771, or send us a message today!

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