Top Ten Fallas For Sale By Owner

1. Overly ambitious prices- An owner’s home is unique and special to him or her. They chose this home above all others, made it their own, lovingly maintained it, and tirelessly updated it. It is natural that, above all others, they overvalue the property as a competitive product in the real estate market. A quick tour of the Zillow.com For Sale by Owner listings highlights this issue in that the vast majority of homeowners value their listings significantly above the Zillow Zestimate. While Zestimate isn’t the last word in market analysis, it tends to be pretty close. Additionally, the data used for a Zestimate reflects homes sold by real estate agents, as they sell the majority of homes in the US. These sales are typically 10-18% higher than homes sold by the owner.

2. Failure to update- Often decorating a home is perfect for the current owner, even if it was last done years ago. Unfortunately, buyers generally expect updated decor, appliances, mechanics, and exterior. Otherwise, they devalue the home by the amount they estimate it would cost to bring the home to its current appearance and efficiency. This amount tends to be more than what the upgrade would actually cost, so it makes sense to get the work done before you market the home. If this is not possible, the cost must be factored into the asking price. For the price we’re asking, they should take it as is. thought does not fly, they will not.

3. Lack of Marketing- A lawn sign and a Craigslist listing are not enough in today’s highly competitive market. Marketing is successful if a buyer would have to live under a rock to be unaware of the listing. Presentation is equally important. A home must look wonderfully appealing to compete with the professionally presented and photographed listings typical of today’s real estate agent presentations. A great way to do this is with a flat fee MLS listing. Learn more linked at the end of this article.

4. The imaginary buyer- A home’s salability can be determined by the size of the buyer pool present for a particular home in a given location for a given price range—how many buyers are looking for a home like this. Sellers often envision a buyer who would be interested in their listing at the price they want. This ghost buyer probably doesn’t exist, or if it did, you’d probably buy something at a more competitive price.

5. Inflexibility Every situation is different. What seems to be the best course for selling is often frustrated or unsuccessful. When this happens, the failure to reevaluate and redirect often ends in a dead end in the process. The real estate environment changes slowly and often not in the desired direction.

6. Creative financing- Homeowners often receive “creative” offers from potential buyers who have an unfortunate tendency to fail or cause serious financial damage to the seller. These prospects have often been turned down by homeowners represented by real estate agents who know better than to engage in shady dealings with unsubstantiated buyers.

7. Do not rate- Owners often accept contracts from buyers who are not creditworthy. The result is usually failure, back to square one, or litigation. A buyer must be qualified before even viewing the home.

8. Availability- Owners must be available 24/7 by phone or email to answer questions about the home and schedule a showing at the convenience of qualified buyers. If they have to wait, they will usually see something else.

9. Negotiations- Lack of negotiation skills cost sellers millions of dollars every year in the US Homeowners attract buyers who are ready, willing and able to discuss them. These same prospects would have little luck with low-level sellers represented by Realtors who are highly trained and experienced in negotiations and can spot a dealer a mile away.

10. Not consulting a Pro- Even if there is some compelling reason not to use a real estate agent to professionally handle the sale, not having one available can prevent devastating situations that can often destroy an otherwise viable sale. The next best person to consult is a real estate attorney; no transaction should be made without either; there is too much at stake in the outcome.