Introduction
In the adventurous journey of selling your home For Sale By Owner (FSBO), you might encounter a few bumps along the way. A report from the National Association of Realtors (NAR) shows that FSBOs accounted for 10% of home sales in 2021, indicating that successfully navigating this process requires careful planning. This post will guide you through the top home selling mistakes FSBOs often make and how you can avoid them.
Mistake #1: Incorrect Pricing
Pricing is a critical factor that can drastically impact your home sale. Overpricing might dissuade potential buyers, while underpricing may result in a financial loss. The NAR report reveals that the typical FSBO home sold for $225,000 in 2021 compared to $330,000 for agent-assisted home sales. This disparity underlines the importance of doing a thorough market analysis or considering an appraisal for the right pricing.
Mistake #2: Poor Staging and Presentation
According to the NAR’s Profile of Home Buyers and Sellers, the typical home purchased in 2022 was 1,800 square feet in size, built in 1986, and had three bedrooms and two bathrooms. Buyers have specific preferences, and how you present your home can significantly influence their decision. Proper staging and quality photographs are necessary to make your home appealing both online and in-person.
Mistake #3: Inadequate Marketing
Inadequate marketing can limit your pool of potential buyers. The NAR survey reveals that 51% of buyers found their home on the Internet, highlighting the need for a strong online presence. You can use social media, local listings, virtual tours, and the Multiple Listing Service (MLS) to get your property in front of potential buyers.
Mistake #4: Ignoring Necessary Repairs
Ignoring necessary repairs can negatively impact your sale. Buyers often overestimate the cost of repairs, and visible issues can deter potential buyers. By taking care of these problems before listing, you increase your chances of attracting buyers and getting your desired price.
Mistake #5: Difficulty in Paperwork and Negotiations
Selling a home involves dealing with complex paperwork and negotiations. The NAR report indicates that 13% of FSBO sellers found understanding and performing paperwork challenging. Moreover, negotiation skills are vital as the NAR report also shows FSBOs typically sold their homes for $105,000 less than agent-assisted sales in 2021. You may consider seeking legal advice or assistance from a real estate savvy friend to overcome this hurdle.
Conclusion
Selling your home as a For Sale By Owner (FSBO) can be profitable, but common mistakes could jeopardize the success of your sale. By avoiding these pitfalls – incorrect pricing, poor staging and presentation, inadequate marketing, ignoring necessary repairs, and issues with paperwork and negotiations – you’ll increase your chances of a successful and profitable home sale.
References
- Highlights From the Profile of Home Buyers and Sellers. https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers.
- Quick Real Estate Statistics – National Association of REALTORS®. https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics.
- 2020 NAR Report: Breaking down For Sale by Owner (FSBO) homes. https://theamericangenius.com/housing/big-data/2020-nar-report-breaking-down-fsbo-homes/.
If you are thinking of selling your own home, please give me a call and I can provide you with a For Sale by Owner guide, as well as potentially find a buyer for you. Call today, 719-820-4347
