The Running Realtor: FSBO – For Sale By Owner Homes – Mistake #1

A blend of ramblings about Real Estate & Running around New Haven County and the Connecticut Shoreline

FSBO – For Sale By Owner Homes – Mistake #1

As we approach the prime spring market many people will undoubtedly consider selling their home without using a real estate agent.  Most underestimate the task and simply think they can plant a sign, place an ad and 5 Mile Running Routepocket the commission themselves.

The reality is most FSBO's fail and eventually list the property.  The reason their home does not sell is fairly easy to spot for a professional. 

Earlier today I mailed out a letter to many of the homeowners along my 5-Mile running route.  The neighborhood is approaching 30 years old with many Ranch, Raised Ranch and Split Level homes.  A realistic statement would be to say it's a 350-400k area.

Strangely enough my first internet search gave me a perfect EXAMPLE to discuss. This property sits in the middle of my running route and the asking price of $550,000 is clearly well above my estimate of the neighborhood.  The CLASSIC FSBO mistake number one is OVERPRICING. They are just asking for failure and in most cases the home will linger on the market unsold.

My next step was to log onto the MLS and verify my estimate of the area but I got sidetracked with another thought and checked the ZESTIMATETM .   Zillow did confirm my 350-400 range but had my example home priced higher so it may be a little over built.

Moving on to the MLS... I find what I refer to as Mistake #2 when talking to FSBO's.   After they finally realize things are not going well they LIST THEIR HOME on the MLS with a minimal service agency, this one is based in Georgia. For showing instructions call the owner.  Now the FSBO has all the work and may wind up paying a commission anyway.

My advice to people going the FOR SALE BY OWNER route is do a little research.  Go to some open houses in your town hosted by other FSBO's.  Talk about what they have learned, watch their progress.

Comment balloon 4 commentsNo Longer Active • March 21 2007 07:39PM

Comments

Sorry, I had to read yours before and after reading the offending post.  Yep!  You are right, the second post was definitely lifted. You would have thought that they would have at least changed the wording and kept the ideas if they wanted to claim it as their own.  But, how hard is it to give the real author full credit while including the work within their post.   
Posted by Roger Stensland, Let's Move! (The Cascade Team Real Estate) over 11 years ago
Odd... After the first comment my points dropped.... Crazy new math or program bug?
Posted by No Longer Active (Real Estate) over 11 years ago

Happened to be poking around Localism today and ran into this post I put up last month.  Clicked on the links to make sure it was still valid and noticed the price reduction to $529,900.

Also check the MLS link put up by the minimal service agency and noticed one more downside to listing with someone that is not familiar with the town.  North Haven is phasing in the new tax assessment over 3 years. The MLS lists taxes of $8574 instead of the correct amount of $5430.  That is over a $3000 error.

Anyone considering selling their home in this area feel free to call me.

Posted by No Longer Active (Real Estate) over 11 years ago

Dan

Best thing to do is keep in contact with that FSBO let him know you are always in the area, tell him you run the area and are always alerted to new things going on in the area. When that OPT is ready to sell he'll call you.

Posted by Gary J. Rocks (Juba Team Realty) over 11 years ago

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