The Folly of FSBO

     For Sale by Owner, or FSBO, has become a fairly common factor in today's Real Estate market.  Any Realtor can likely think of at least one FSBO that they've passed recently while showing other homes in the area.  Just a few years ago, homes were entering and leaving the market so fast that after taking a listing, a Realtor could easily have 10 offers on the home before they were even able to get a sign in the yard.  The bravest of homeowners could put a FSBO sign in their front yard and could be fairly confident that the home would sell pretty quickly.  They may or may not have found their buyer with the help of a Realtor, but they definitely had the market activity to do it without. 

     Today, the market is extremely congested with foreclosures and short sales.  The average seller, at least in my neck of the woods, has so much competition that, unless they have the luxury of spending every day advertising their home and the money available to spend on the marketing, will not stand a chance without someone to represent their interests.  Furthermore, the far fewer active buyers are working with Realtors, in most cases.  Where are the Realtors seeking out the properties to show to their buyers?  I'd be willing to wager that they aren't driving them around looking for FSBO properties.  With our responsibility to our buyer-clients, we'd be doing them a disservice if we weren't relentlessly searching our local Multiple Listing Service or Foreclosures.com or Homepath.com for the best possible house at the lowest possible price.  Unless one is paying to advertise in every media resource available, a FSBO likely has only the traffic passing by each day, mostly neighbors and their houseguests, to actually see that the property is for sale.  If you live on a dead-end street, you can imagine the additional hardship. Unless one owns their home free and clear, is offering it for sale at a huge discount, and has the advertising available to attract attention, a FSBO is a hard property to sell.

      To quote one of my favorite writers, "Pay your brokers well... If they are truly professionals, their services should make you money."  I like to add my own extension to Robert Kiyosaki's phrase, mine being specifically geared toward the current market, "Their services should either make you money or save you as much as possible."  I add my extension since many homes are being sold short, meaning that they are being sold below the actual mortgage balance owed.  A Realtor should be able to point you in the right direction to find the advice necessary to negotiate with the bank and reduce the amount of the difference that you will end up having to pay by as much as possible.  Furthermore, a Realtor earns their commision for marketing your property in whatever way necessary to get it sold in the shortest time for the best price.  This includes not only advertising your home for sale and listing it the MLS, but also negotiating on your behalf and with your instructions when offers come in.  I could go on and on about the benefits of the lockbox that a Realtor might put on your home, depending on the area, so that your home can be shown while you're at work or on vacation or otherwise occupied and unavailable to show yourself, as you would be in a FSBO situation.

     Bottom line: the market has changed drastically and what worked a few years ago doesn't work as well today.  This is a challenging time for a seller and the assistance of a Realtor in getting a home sold may mean the difference between a sale and a long and stressful process that ends in disappointment.  If you want your home sold, I advise that you at least speak with a Realtor and learn what services they have to offer.  If you are steadfast in your goal to sell your home FSBO, I would advise speaking to a Realtor and exploring the possibility of paying a flat fee to get your home listed in the MLS to at least improve your pool of potential buyers.  If you choose option number 2, make sure that you or someone else is available at all times to answer calls and make the property available when buyers come to look.  I wish you luck, I do truly hope that your property sells, as it will improve the market in it's own way.

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