FOR SALE BY OWNER.

At NOVAK we respect and appreciate the FSBO. We help them find a direct buyer. If you are considering FSBO, please read this article. It is intended to help you understand the perspective of the buyer so you can make the best decisions.

What is the sellers greatest advantage in selling directly to a buyer? Save the commission.

What is the buyers advantage in buying directly from you? The buyers greatest advantage in buying directly from you is to save the same commission you hope to save.

Some people also like to buy used cars from a dealership; Others prefer to buy direct from owner. Which do you prefer and why?

From a buyers perspective, a FSBO appears to be cutting corners and possibly impoverished; else they would have hired a professional real estate broker. If the seller is broke, then what happens if the home doesn’t appraise? What if the inspection report reveals the furnace and roof are on their last leg and need replacing? It’s easy to assume that the owner is cheap; otherwise they would have hired a professional. Do you really want to buy a house from someone who might have also cut corners on their home instead of paying a professional to fix the plumbing, electrical, roof, etc.?

Even if you are offering 2.5 percent to agents who bring a buyer, most agents don't want to risk working with you. You are not a state licensed representative. The agent could send the buyer for a drive by and the seller could decide to work with the buyer directly and not pay the 2.5 %. Furthermore, the agent is forced to present the buyer with the fact that they could buy direct from owner, but must pay extra to cover the commission. Smart agents and buyers understand that a seller who hires an agent has a sense of urgency. They have a plan, a professional, and will move out when the home is sold. FSBOs are doing what they do because they often have no sense of urgency and no plan, resulting in a variety of hesitations throughout the sale process. There is a much higher chance that the buyer will run into problems getting them to vacate after closing. For these reasons, the smartest and most qualified buyers will steer clear of the FSBO. Time is more important than money. They are willing to pay more for peace of mind.

Serious and qualified buyers are willing to pay a fair price for the security and convenience of a professionally represented home. Anytime a buyer buys directly from the owner, they slip into the garage sale mentality and expect a discount. Direct buyers are often unqualified bargain hunters. They are looking for desperate sellers so they can buy the home for thousands below fair market value. FSBOs actually attract a higher proportion of unqualified strangers to the interior of your home.

For these and many other reasons, the real estate network does not like the for sale by owner.

90% of all real estate is sold through real estate firms. Statistics show that 85% of FSBOs convert to a professional Realtor. If you were going to have heart surgery, you want it done right. Protecting your hard earned investments also requires great skill and experience. Do you see any disadvantages in trying to sell your home yourself?