What Can Real Estate Agents Do About ‘For Sale By Owner’ Homes?
Real estate agents offer professional assistance to sellers who want to get optimal value for their homes. In certain instances, however, sellers attempt to avoid commission fees by going the For Sale by Owner (FSBO) route. While the occasional person might benefit from this practice, most face unexpected challenges and disappointing results. To help turn more do-it-yourselfers into happy clients, learn how to sway prospective sellers from going the FSBO route.
Inform and Educate Sellers on FSBO
Many inexperienced sellers have heard they can save a bundle by forgoing representation. More often than not, these people end up inundated with confusing paperwork and unqualified buyers. Fortunately, you can convert more of these sellers into clients by explaining the following pitfalls associated with FSBO:
It’s quite common for FSBO sellers to price their homes too high. As a result, the houses tend to languish on the market, causing buyers to suspect that something might be wrong with the properties.
Research suggests that 92 percent of buyers use online resources to find a home, while only 28 percent rely on print newspaper ads. It’s important for agents to explain their online strategies for promoting the sale of a home.
Thanks to industry regulations and disclosures, selling a home involves more paperwork than ever before. This is one of the biggest reasons FSBO has dropped from 19 to 9 percent over the past two decades.
Financial and Legal Liability:
Inexperienced sellers often make mistakes or oversights when filling out paperwork, exposing themselves to costly liability issues.
Netting Less Money:
According to industry data, agent-assisted home sales average approximately $249,000, while the typical FSBO home sells for only $210,000. This difference usually eliminates any savings related to agent commissions.
It can be difficult for self-sellers to weed out unqualified/uninterested buyers. These types of interactions can waste a lot of time and make it more difficult to connect with serious buyers.
Communication Is Key
Selling a home can be a stressful endeavor, especially for people with little experience. When reaching out to potential clients, it’s important to establish trust by providing honest facts about the challenges associated with FSBO. Whether it’s through print, a blog post or direct contact, be sure to provide clear, concise reasons why self-selling could lead to disappointing results.
Learn more about how a Home Warranty can save homeowners from unpleasant financial surprises and add value to your business.