8 FSBO Fails: How Home Sellers Go So Wrong Without an Agent

Looking for a trusted and experienced real estate agent in Buffalo NY? Look no further than Doormen Realty. Our team of experts is dedicated to providing exceptional service and helping clients navigate the real estate market with ease. Whether you're buying or selling a property, we have the knowledge, resources, and commitment to ensure a smooth and successful transaction. Trust Doormen Realty for all your real estate needs in Buffalo, NY.

You might engage in the largest financial transaction of your life here. But how challenging may it really be to sell your own house? Are agents really necessary? Who wants to pay all that commission, anyway?

As a realtor, I frequently overhear remarks similar to these.

Actually, it's thought that 36% of sellers try for sale by owner, or FSBO (pronounce it "fizbo"). The success rate is barely 7 to 10%, according to Zillow data, and half of those sellers already know the buyer.

In addition, even if you are successful in selling on your own, FSBO properties sell for an average of 35% less, more than making up for the commission savings.

1. Mispricing your home

Everybody wants to think their house is the best on the block and worth more than all their neighbors. As a realtor, I face this all the time.

Naturally, it is natural. Perhaps you've done a lot of work on your house. While some upgrades do in fact pay for themselves, others don't. like, say, a swimming pool. When I show a prospective buyer a house with a pool, I get two responses. Either exhilaration or melancholy prevails. Oh, good. The pool is there.

Naturally, if you own your home, you'll value it higher. However, a wise agent would advise you that, overall, it's a neutral factor—unless all of your neighbours have pools while you don't. It doesn't hurt as much as you think, even then.

Also, be on the lookout for less scrupulous seller agents. They may try to “buy" listings by inflating the home's value to impress the seller. But they fall short at sale time. As a FSBO seller, you may inflate your home's value just like those agents do, but you just don't know better. The result is that your home stays on the market longer, forcing you to lower your price beyond what it should have sold for or doesn’t sell at all.

2. Lack of MLS market data

Multiple Listing Service, or the MLS, gives agents access to a variety of real estate information to help you obtain the best bargain. The strength of the MLS cannot be matched by the amount of real estate information that the average person may access online.

Without using a discount broker, who would charge a fixed fee of several hundred dollars, an FSBO seller cannot list their home on the MLS. The broker doesn't assist with photos, marketing, or disclosures, though.

On the other hand, a full-service seller's agent will use the MLS to properly value your home with an insightful comparative market analysis (CMA). They will account for factors affecting comparative sales, such as seller credits or closing help, which won't show up on public sites. Appraisers can use the agent's CMA as part of their home appraisal.

3. No network at your disposal

A good realtor will have a network of vendors, contractors, and often, ready buyers for a home. Do you?

Often a realtor might have the buyer for your home lined up already or know an agent who has a client looking for a certain property. Agents share information on their clients with other agents looking for a match. Most sellers don’t have this network.

Moreover, when it comes time to prep your home for sale, you likely don’t have a network of contractors and vendors like a good agent does. Without them, you'll probably spend a lot of time getting bids and sometimes getting unreliable contractors and indifferent work.

4. Not understanding how to best prepare a home for sale

One of the biggest issues FSBO sellers face is preparing their homes for sale. A realtor can help you prioritize what to do and what you can skip.

Yes, most people understand the importance of curb appeal and what a fresh coat of paint and new carpets can do. But in my experience, some sellers get “remodeling fever” and do far more than is required.

5. Failing to stage the home (and knowing when you don’t need to)

Staging really works. While most sellers understand decluttering, they often don’t realize how important “depersonalizing” the home is. Both are key to good staging.

While often we can’t remove our entire lives from our homes, a realtor can help you with the little things needed to depersonalize the home, such as removing pictures, religious icons, or offensive items that can turn off a buyer.

Working with a realtor is key. A stager generally won’t want to work with a FSBO seller because they have a limited inventory of furniture and staging materials.

6. Lack of marketing and selling skills

Most people have a limited understanding of how to market and sell a home. Even salespeople in other fields may not understand the nuances of real estate sales.

On the other hand, the skills are in a realtor's wheelhouse. A good agent ensures your marketing is effective, engaging, honest and ethical.

For example, It’s fine to move a trash can out of a listing photograph, but it's unethical to use photo-editing software to erase a transmission tower or the "duplicate” tool to hide missing roof shingles.

7. Not understanding legal pitfalls

Walking distance. Close to church. Family-friendly. Safe neighborhood.

If you encounter these seemingly innocuous phrases in a real estate listing, it's probably violating a local, state, or federal housing law. If you’re writing your own real estate ads, would you know what’s against the law?

“When you’re hiring an agent, you’re hiring a professional who can guide you through the legal pitfalls of the marketing,” says Schwartz.

8. Lack of negotiation and closing support

Let’s say you do get an offer from a buyer’s agent. Now the real fun begins. Can you negotiate effectively without the MLS to determine whether the offer is fair? Can you understand all the contingencies and their impact?

In addition, a realtor will help you evaluate offers and the strength of a pre-approval letter from a lender. Some aren’t worth the paper they’re printed on. Do you know the difference between pre-approval and pre-qualification? Do you know what to ask the buyer’s loan officer to make sure the transaction will close? If you don’t use a realtor, it’s on you.

Another disadvantage is that you simply don’t know the buyer’s agent. Experienced realtors will know many agents in an area. They will know who is easy to work with and who isn't.

For example, would you know how to handle an offer from an agent who offers you a great price but slips in a “poison pill” of multiple contingencies? That agent may plan to keep reducing their offer with repair credits (not fixes) as a strategy. Some brokers instruct their agents to do that. Do you know which ones?

Conclusion

Having a reliable and knowledgeable real estate agent in Buffalo, NY can make all the difference in your property buying or selling journey. With Doormen Realty by your side, you can expect exceptional service, extensive market expertise, and a commitment to your best interests. Our team of experienced agents is dedicated to helping you navigate the complex real estate landscape with confidence and ease. Whether you're a first-time buyer or an experienced investor, trust Doormen Realty to guide you every step of the way. Contact us today and let us help you achieve your real estate goals in Buffalo, NY.