It has been proven that homes listed with a professional sell faster and at a higher price than homes listed For Sale By Owner (FSBO). But, why? Here are the top 5 mistakes we often see FSBOs make:
Lack of Professional Photos
This mistake kills us and it’s such an easy one to avoid! Pro photos range from $99 to $499 in the St. Louis market and pricing generally depends on the size of your home and lot. Unfortunately, many sellers skip this critical step, but we encourage you to rethink this one! Photos are the VERY first impression you have with a potential buyer, so make them count. It’s as simple as that – don’t make the mistake of skimping on photos – invest in a great real estate photographer right away.
Lack of Appropriate Pricing Strategy
Pricing your home higher than the market “with a buffer” will NOT bring the best offer. If you think your home is worth $300,000, do not price it at $315,00 with “room to negotiate”. We hear this error ALL THE TIME, and it breaks our hearts! Price your home at (or slightly under what it’s worth) in order to maximize your exposure and attract the highest number of qualified buyers.
Lack of Exposure
The best way to find buyers is to meet them at the very place they’re spending all their time home shopping! Buyers are working with agents, and agents are working through the Multiple Listing Service (MLS). A key component that FSBOs miss out on is the vast exposure the MLS provides each listing. It serves as a syndication hub, sending your listing out to thousands of websites instantly. Offering your home FSBO on a single site, such as Zillow, will significantly limit the number of eyes coming across your home.
Lack of Offering Compensation to Buyer’s Agent
Again, buyers are working with agents. Agents are customarily compensated by the seller. If you are selling FSBO and not offering compensation to a buyer’s agent, buyers are placed in a tricky situation. They are forced to either buy a home without the help of their chosen professional, or they need to find a way to compensate their agent themselves. In most cases, the buyer simply chooses to not pursue the FSBO home and proceed with another home listed with a real estate professional in the MLS.
Trying to Sell AS-IS
While there is certainly a time and place for an AS-IS sale, the term AS-IS has been overused in our current market. Plus, it can be a little intimating to the buyer on the other side. It’s okay to not be interested/willing to take on significant repairs or upgrades to your home, but using the term AS-IS could turn away a buyer who’s open to earning a little sweat equity. While we’re on the subject of repairs, it’s not a bad idea to consider setting aside a reserve fund for smaller potential repairs that may come up throughout the sale, too! A little elbow grease can go a long way in helping you put your best foot forward in preparation for a quick sale.
Want to work with an agent but have the option to find your own buyer too? Ask us about our FSBO Option Addendum, a unique offering for all KB Collective sellers!