Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Thu, 14 Sep 2017 15:40:50 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 10 Reasons Why For Sale By Owners in Real Estate Aren't Successful [caption id="attachment_2757" align="aligncenter" width="450" class=" "]Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate - Top 10 Reasons Why For Sale By Owners (FSBOs) Fail in Real Estate -[/caption] A FSBO, also known as a for sale by owner, can easily be described as a homeowner selling their property without the representation of a real estate agent or broker.  There are many reasons why homeowners attempt to sell their home on their own.  A few of the most popular reasons for FSBOs are they want to save the money that would be spent on real estate commissions or that they feel they don't need a real estate professional to sell their home.  No matter the reason, according to the National Association of Realtors, less than 10% of FSBOs actually sell. There are many reasons why FSBOs fail and do not sell.  Whether it is because the FSBO doesn't understand how to price their home or whether it's because they don't know how to screen potential buyers, it's important that if you decide to sell your home by yourself you know what the top reasons why FSBOs fail. By knowing what the top reasons are for FSBOs failing, you can increase the chances that you can successfully sell your home by yourself.  Below are the top 10 reasons why FSBOs fail in real estate.  

Reason #1 FSBOs Fail: They Don't Know How To Prepare The Home Correctly Before Listing For Sale

Properly preparing a home for sale plays a huge role in the success of selling homes, whether FSBO or not.  One of the most common reasons why FSBOs fail in real estate is because the homeowner has no idea how to properly prepare before it is listed for sale. Listing a home for sale before it is ready can be detrimental to the chances it actually sells.  It's very important that if you're planning on selling your home by yourself without professional representation, you don't list your home for sale before it's ready! There are many home sale preparation tips that should be followed by FSBOs.  Some of the most important pre-listing tasks that FSBOs should do before listing their home for sale include;
  • Decluttering
  • Freshly paint rooms
  • Professionally clean carpets and/or floors
  • Complete any neglected repairs
  • Replace outdated light fixtures
  • Make sure your home has good curb appeal
The above home preparation tips will greatly increase the chances of a successful FSBO.  Remember, when it comes to selling a home, there is only one chance to make a first impression and by neglecting these home sale preparation tips, you could be costing yourself a sale.

Reason #2 FSBOs Fail: They Don't Know How To Screen Potentials Buyers

A top real estate agent overtime learns how to screen potential buyers.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner has no clue what questions they should be asking or how to screen the potential buyers. FSBOs will often waste countless hours having unqualified buyers walking through their home because they don't know how to ensure they are pre-approved or at the very least, pre-qualified.  Many FSBOs don't even realize there is a difference between a pre-approval and pre-qualification.  It's important that if your planning on selling your home by yourself, you know the difference between a pre-approval and pre-qualification, but also know how to find out if the buyer is even able to purchase your home. A strong suggestion for any FSBO is to have a connection with a local mortgage consultant or representative.  If potential buyers inquire about your home, one of the first questions should be, "have you been pre-approved for a mortgage?"  If they have not, you should insist before you're able to have them view your home, they speak with a mortgage consultant and you'd be happy to give them a recommendation. [caption id="attachment_2752" align="aligncenter" width="450"]Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail Not Being Able To Handle Property Inquiries Is A Common Reasons Why FSBOs Fail[/caption]

Reason #3 FSBOs Fail: They Aren't Able To Be Available To Handle Property Inquiries

Many FSBOs believe that real estate agents make boatloads of money and don't have to work many hours to do so.  This is one of the most common real estate myths that exists.  The fact is, real estate agents spend much of their day handling inquiries on their listings from buyers and also coordinating showings for their listings. One of the biggest reasons why FSBOs fail in real estate is because the homeowner doesn't have the time or availability to handle inquiries on their home or time to show it.  Home buyers and buyers agents want quick responses on their inquiries, otherwise, they will often move onto the next potential property. Many FSBOs aren't able to answer showing requests and property inquiries.  Whether it's because they have a full-time job or because they are simply not good at answering their phone or e-mails, not having the availability to answer these inquiries is a huge reason why FSBOs fail in real estate.

Reason #4 FSBOs Fail: They Don't Allow Potential Buyers To View The Home Without Pressure

Without doubt, one of the primary reasons FSBOs fail in real estate is because the homeowner doesn't allow a potential buyer to have space as they view their home.  Most home buyers do not like to be pressured when looking at a home. It's suggested that if you are going to sell your home without representation from a professional, you give space to the potential home buyer.  Allowing the buyer to view your home without being sold on how great your home is will actually go a long way.  Giving a potential home buyer space allows them to be able to speak openly about the property without worrying that they will hurt the homeowners feelings.

Reason #5 FSBOs Fail: They Don't Know How To Negotiate With Potential Buyers Offers/Contract

While the training that is required to become a real estate agent is not extremely difficult, there are many things that are learned while taking the required courses.  One of the most important things learned throughout the licensing process pertains to real estate contracts.  Real estate contracts can be confusing which is why it is one of the top reasons FSBOs fail in real estate. A FSBO who doesn't have a strong understanding of a real estate contract may not know what they are agreeing and also the possibility exists they don't know how to negotiate specific parts of the contract.  Real estate contracts are loaded with lots of clauses, timelines, and also many common contract contingencies, such as mortgages and inspections. It's important that if you plan on selling your home by yourself, you understand that the contract is more involved than just the price the buyer is offering.  Certainly the offer price is important, but the fact a contract has fewer contingencies should also not be ignored.

Reason #6 FSBOs Fail: They Don't Know How To Handle The Home Inspection Findings

Most home buyers want to have a home inspection and there are many reasons why a home buyer should have a home inspection when buying a home.  One of the most common reasons why FSBOs fail in real estate is because the homeowner does not know how to handle the home inspection phase of the real estate transaction. The likelihood that a home inspector is going to find something wrong with any home is strong.  Certainly there are some homes that will have fewer home inspection findings, however, even newly built homes will likely have "issues." FSBOs often believe that there is nothing wrong with their home which is why it's upsetting when the buyer requests items to be corrected or fixed before moving forward with the transaction.  This can often lead to the FSBO refusing to correct or fix any items, which is a great way to scare away a potential home buyer. [caption id="attachment_2754" align="aligncenter" width="450"]Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail Not Willing To Pay A Buyers Agent A Commission Is A Top Reason FSBOs Fail[/caption]

Reason #7 FSBOs Fail: They Aren't Willing To (Or Able To) Pay A Commission To A Buyers Agent

Another common reason why FSBOs are unsuccessful is because the homeowner is not willing to pay a buyers agent a commission.  A FSBO is able to save the commission they would have to pay a listing broker and some are willing to pay a buyers representative, which is a smart idea.  FSBOs who are unwilling to pay a buyers agent a commission will greatly reduce the chance of a successful sale. Most home buyers want to have a buyers agent when buying a home.  A FSBO who is unwilling to pay even a buyers agent a commission is eliminating a significant number of potential buyers. If you must attempt to sell your home without a professional real estate agent or broker, which is never suggested, agreeing to pay a buyers agent is a very smart decision.

Reason #8 FSBOs Fail: The Home Is Lacking Marketing Exposure

One of the biggest reasons FSBOs fail in real estate is because the homeowner is not able to get their home in front of enough potential home buyers.  There are certainly websites that allow FSBOs to list their home for sale, however, there are also some websites that will not allow FSBOs to market their home. A top producing Realtor should be able to give their sellers homes tons of exposure.  Whether it's online exposure or exposure in the local real estate section of the newspaper, Realtors have the tools to provide exposure that FSBOs do not.  The use of cutting-edge technology and a comprehensive marketing plan are just a couple things that sellers should expect when they hire a Realtor to sell their home.

Reason #9 FSBOs Fail: They Incorrectly Price Their Home

Learning how to properly price real estate takes lots of practice and experience.  One of the biggest reasons why FSBOs fail in real estate is because the homeowner incorrectly prices their home.  There are many factors to consider when pricing a home for sale, many of which are not taken into account by a FSBO. It's fairly common that FSBOs price their home too high, which can significantly hinder the chances the home sells.  If you decide to attempt the sale of your home without a Realtor, you should consider having an appraisal completed on your home.  An appraisal can help verify that the price you're thinking of listing your home for sale at, is in line with what an appraiser indicates your home is worth.

Reason #10 FSBOs Fail: They Don't Know How To Ensure The Deal Actually Closes

Once a purchase offer is accepted on a piece of real estate, there are many things that still need to be completed prior to the closing.  Another common reason why FSBOs fail is because the homeowner doesn't know what to do after accepting the offer and the ball is dropped somewhere along the line. There are specific timelines that should be followed as well as specific tasks that need to be completed by different parties.  Many times a FSBO doesn't understand who needs to be doing what and when the tasks should be completed. If you decide to sell your home by owner, some of the tasks that need to be completed prior to closing include;
  • Buyer obtains written mortgage commitment
  • Inspections are completed within allotted time
  • Attorney(s) approve contracts
  • Instrument survey is ordered
  • Title work is reviewed
  • Abstract is re-dated

Final Thoughts

Before you decide to sell your home by owner, remember, the chance you will be successful is less than 10%.  If you decide you want to take on the challenge, make sure you are aware of the above common reasons why FSBOs fail in real estate.  FSBOs who understand what the most common pitfalls are will greatly increase the chance that they have a successful sale.

Other Top For Sale By Owner (FSBO) Resources

Are you a Rochester, NY homeowner and are thinking of selling your home without Realtor representation?  Have you attempted to sell your Rochester, NY home by owner and failed?  If you were unsuccessful, I'd love the opportunity to talk with you about your real estate plans and objectives.  Contact me so we can decide whether there would be a mutual benefit of working together on the sale of your Rochester, NY home.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why FSBOs Fail (For Sale By Owner) In Real Estate" was written by Kyle Hiscock of The Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>