For Sale By Owner : Rooftop Views

Rooftop Views

For Sale By Owner

When times are good you see them on every corner - FOR SALE BY OWNER the signs say. Usually purchased from a hardware store with a handwritten phone number to call on the bottom.

So why do people try to sell FSBO? Usually only one reason - TO SAVE THE COMMISSION!! I can do this, they think, and I can save that commission - or at least half of it. It certainly doesn't take any great knowledge or skill to sell houses. Look at all the people who do it and look at how rich they are from all the big commissions they make.

While actual statistics are not available, our experience is that 80 - 85% of all those who start out FSBO end up listing their homes with a real estate agent. Why? It's not as easy at it looks. Among other things they discover:

1. They have to be at home to show the property at all hours of the day and night.

2. They don't have nearly the traffic they expect because the home is not exposed to most Buyers. Most Buyers are either working with a real estate agent or otherwise looking at realtor.com or local MLS internet databases. Most of the time FSBO homes are not on those sites.

3. They get lots and lots of "looky loos" who waste their time and invade their space with no intention of purchasing their home.

4. The paperwork is overwhelming.

5. People always want them to "carry the paper" because they can't get a loan through regular channels.

6. Buyers always low ball the offers. They know the Seller is not paying a commission so they knock that amount off of the offer price - even though the Seller may think they have ALREADY reduced their price to account for the commission.

Traditionally about 15 - 17% of all homes are sold FSBO each year. We believe a large portion of that group has a real estate agent representing the Buyer who is actually handling the transaction for the Seller - although in most cases in Colorado they represent the Buyer and are not working in the Seller's best interest.

We find it difficult to understand why people trust the biggest asset they have to a non-professional - themselves. Next time, before you FSBO, consider listing with an agent. You'll be glad you did.