Did you know that only 10% of those that choose to sell their home as a FSBO seller actually succeed? According to recent numbers from the National Association of Realtors (NAR), selling your home on your own can be tough.

Many people who try FSBO assume they know all that Recadia does and they feel confident that they can do it on their own. They consider things such as setting the price of their home, marketing, legal paperwork, and their ability to show the house.

You’ve likely thought of these things as well. Perhaps you feel comfortable with marketing or have the time to meet potential buyers throughout the day. If you’ve gotten this far in your decision to be a FSBO seller, you probably feel comfortable with these more well-known realtor tasks.
But these aren’t the only tasks you’ll face. To be truly successful as a FSBO, you also need to consider many other duties attended to each day by professional Recadia agents, as well as issues associated entirely with an FSBO sale.

Here are four unexpected challenges you will want to consider as you determine whether FSBO is right for you.

1. Do You Know How To Tell a Buyer From a Looker?

No one wants to waste their time showing a home to someone that isn’t really a buyer, but it can happen. Sadly, it happens quite a bit for those selling their own homes. Neighbors are curious and weekend dreamers are dreaming. In the meantime, you are taking time off from work or from true buyers to show your home to someone that will never really purchase it. As a FSBO seller, how do you tell if someone actually wants to buy your home, and more importantly, if they are qualified to buy your home?

Recadia agents have learned to spot qualified buyers. We know what questions to ask, such as how long the buyer has been looking, whether they’ve been prequalified by a bank, what they are looking for in a home, and if they have found anything else so far that may meet their needs. By doing so, the we move buyers towards appropriate houses and moves lookers out the door.

What To Do: If someone is financially prequalified at a lending institution, they will have a letter as proof. You may want to consider only showing your home to those with a prequalification letter. Although this won’t guarantee they will qualify to buy your home, it is a good start.

2. Can You Handle the Personal Rejection?

Most people are emotionally attached to their homes because of all the associated experiences and memories. Due to these emotional attachments, many sellers find it difficult to step back and see things objectively. It is very easy to make mistakes when selling your home if you are too emotionally attached.

What kind of mistakes can be made? You may not be able to objectively see your home’s flaws, thus pricing it incorrectly. You may be unwilling to counter an offer because you found the initial offer to be insulting. You may jump at an offer that is too low because you are afraid or have a deadline. You may say something offensive to a buyer who doesn’t like the color of your kitchen. All of these emotional mistakes can be costly.

A Recadia agent is one step removed from this process. We see your home as a house that needs to be sold without the emotional attachment. We can be frank with you about the flaws, we don’t get distressed when a potential buyer suggests a low offer, and we stay calm in the face of deadlines.

What To Do: Hire a professional home stager to help you assess the condition of your home, as well as the appeal for the market. Be prepared to hear things about your home that you will find distressing. Look objectively at those comments to determine if you need to change anything about your home as you continue to sell. If you feel you can’t be objective, consider asking a friend to help you with home tours and negotiating. Staying emotionally grounded during this process is a big deal, please don’t underestimate it. Be honest with yourself on whether you can deal with this effectively or not.

3. Are You Willing to Work With a Buyer’s Agent?

A buyer’s agent is the professional real estate agent that represents the buyer. These agents get their commission from finding their buyer a home and that commission will need to be included in the price of your home. The typical commission for a buyer’s agent is 3% of the purchase price of your home.

What To Do: You have to determine upfront whether you are willing to price your home in a way that provides the commission desired by a buyer’s agent. If you are not, then you will have to work harder to find buyers who are not currently working with an agent.

4. Are You Prepared for the Onslaught of Real Estate Agents Consuming Your Time?

Once you put your home on the market, agents will know it and will begin contacting you, hoping to encourage you to sign with them. Remember, they know the statistics that 90% of FSBO eventually go with an agent.

Are you prepared to handle the phone calls, emails, and letters? You should expect this job to take up to an hour each day.

What To Do: You may want to have a dedicated email specifically for your home sale. Set up the email so that offers from real estate agents go into a specific folder that you can check as you have time. Be careful, however, that interested parties don’t get sent to that file and get forgotten. Also, have a prepared “no thank you” speech for any incoming phone calls.

As you can see, being a realtor is a big job that can be made more difficult as you try to sell your own home. Keep these challenges in mind if you decide to move forward as an FSBO seller so that you can find yourself on the right side of the success equation. If you have any questions or concerns about your individual selling needs, please call Recadia at (214) 281-8500. We would love to discuss how our flat fee, full service real estate model can help you sell your home quickly, hassle free, and save you thousands of dollars in the process.