FSBO 1996.com

Considering that many FSBO sellers eventually list their property with a Realtor, lets take a quick look at the reasons they picked the FSBO route in the first place and why they’re often converted to a Real Estate brokered listing in the long run.

Top reasons home owner’s choose the FSBO path

• Selling a house seems easy
• Keep a larger share of the proceeds
• Not willing to “give” money towards real estate commissions
• Belief that agents don’t add value
• Friend tells you how easy it is to sell on your own
• They have a unique property/unique location, which the seller believes will bring in the buyer

Top 6 tools the FSBO seller will use to expose their property

• Local advertising: Beach Reporter, Daily Breeze, LA Times
• Online advertising: Craigslist
• Open Houses
• 2.5% commission offered to Buyer’s Agents
• FSBO signs around the neighborhood
• Word of mouth

Full version

Each year many homeowners decide to maximize the profit on their home sales by selling it “For Sale By Owner”. At first glance, this is the most tempting option to most homeowners especially in the current real estate market with its rapid appreciation rate. Why pay substantial broker fees when they can pocket several thousand dollars themselves? While this attitude is completely understandable it doesn’t realistically reflect the services a professional realtor truly does offer.

Last year, according to the National Association of Realtors “Profile of Home Buyers and Sellers”, 13 percent of all home sellers chose the For Sale By Owner route. More telling than these numbers, is the fact that one third of all FSBOs sold their homes to someone they knew prior to the transaction which means that the actual figure of For Sale By Owner transactions to strangers is realistically at eight percent. This is a significant downward trend from 18 percent eight years ago…

Even more telling was that only half of last year’s FSBOs, according to the article, plan to go it alone again. Why? Many FSBOs are not aware of the increasing complexities of the transaction process, especially in California, with more complex disclosures and legal requirements required than ever before. In addition, they were often unprepared for the required time to market and show their property, the competitiveness of the real estate industry, and awareness of the various fees required for outside consultants, inspectors, appraisers, title companies, escrow and loan officers…

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FSBO, what is it? FSBO means For Sale by Owner, and it’s a term that’s generally referred to when you’re selling your home without soliciting help from a Realtor