Property 101: Why for sale by property owners fail

Property 101: Why for sale by property owners fail
Jonathan ChancellorJanuary 27, 2016

Homeowners trying to sell their homes on their own — for-sale-by-owners (FSBOs) — are courted by emerging disruptive websites.

Most of them want to save money on real estate commissions, rather than because they feel they don’t need a professional to sell their home.

Recent data from a National Association of Realtors survey in the United States shows that less than 10 percent of FSBOs actually sell.

The Inman site listed some of the top reasons why FSBOs fail in real estate.'

1. Owners do not know how to screen potential buyers and fail in the closing process.

2. Owners fail to solve buyer’s queries.

3. Owners don’t understand the concept of ‘golden time’, as according to this concept, homeowners get the most money for their homes shortly after of putting the property on the market. 

4. Owners fail to understand the contract procedures.

5. FSBOs don’t know how to handle the home building inspection findings.

6. FSBOs incorrectly price their homes too high.

7. FSBO homes lack exposure.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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