There’s a reason FSBO (For Sale by Owner) home sales have dropped from 19% to 8% over the last 20 years. It’s often not worth it to sellers.
But there are still those stubborn few who think they can save time, money or hassle by selling their own home. It’s your job to show them the many flaws in that plan.
So let’s examine a few common things your typical FSBO seller will tell you, and how to handle their objection.
For Sale By Owner Seller Says: “This Will Save Me Money”
They assume that your only function is to put your hand in their pocket and take a cut of the sale they could have had anyways.
This is, of course, wildly inaccurate and the numbers support this. The typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. So the seller’s net from the transaction is actually likely going to be much higher from working with a Realtor®.
For Sale By Owner Seller Says: “I Know What I’m Doing”
No, they likely don’t. Most FSBOers will assume they can just Google the required paperwork, print it off, fill it out, and they’re good to go. We both know how absurd that is.
There is a lot of negotiation and red tape that needs to be handled before you even get to the actual purchase. And they need an expert on their side to guide them at every step.
“You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?” wrote real estate blogger, Rachel Stults.
“And it’s not just about how much money you end up spending or netting. A Realtor® will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.”
You have likely saved people a lot of time and hassle during your career. Tell your FSBO sellers about these times, and use real world examples of how complex things can be.
For Sale By Owner Seller Says: “This House Sells Itself”
If a seller has a hot property that will likely move quickly, selling it themselves will likely leave money on the table by not getting the highest possible asking price for it.
“It’s not impossible to sell a home on your own, but you’ll find that buyers expect a substantial discount when you do, so what you save on a real estate commission may end up meaning a lower price,” wrote real estate and finance expert, Teresa Mears.
“It’s not impossible to sell your home on your own for the same price you’d get with an agent, but it’s not easy.”
For Sale By Owner Seller Says: “A Yard Sign and Newspaper Listing is Enough”
Again, this may make sense in their minds, but the data shows there is almost no truth to this theory.
When it comes to where buyers are looking for new homes, 44% look for houses on the internet and 33% use a Real Estate Agent. Only 9% use yard signs and 1% use the newspaper. So a FSBO seller is only exposed to roughly 10% of the buyers that could see their home if they worked with you.
The FSBO mentality will forever be one of your biggest competitors. There will always be be people who think they can make more money from a FSBO transaction, because they know what they’re doing and their house will sell itself via a simple yard sign. You know better! So always use anecdotes from your actual career to illustrate the many examples of the times you helped buyers make more money, and saved them a ton of time and heartache.
PS: As you get ready to market your new listings, don’t forget about flyers and postcards! You can customize your own design and have high quality marketing materials delivered to you quickly and easily!