It may sound like “fizz,” but the experience for most South Palm Beach FSBO (pronounced “FIZZ-bow”) home sellers is seldom a champagne kind of experience. The idea may be to sell their home as economically as possible, but local owners who plant a “For Sale By Owner” sign on the front lawn usually learn that the bottom line results are more costly than planned. At least that’s what most U.S. home sellers eventually come to agree. Some of the reasons:
How Reality Often Takes the Fizz Out of FSBOs?
- Marketing. Unless the owner is an experienced real estate marketer, the vast majority of do-it-yourselfers have to do without the trust buyers place in their competition: the online listings vetted by licensed real estate pros.
- Invisibility. That lack of trust is only an issue if buyers can find them at all, since, as the NAR® puts it, “few online marketing companies allow FSBO property to be listed.”
- Legal. Most FSBO sellers lack the technical experience to accurately describe all their property’s specific details, each of which is a claim. The homeowner can be held accountable by law for every one. Ignorance is no excuse, so even mistakes that were honestly made create potentially expensive liabilities.
- Net. The typical bottom line is significantly lower for FSBO sellers than for those choosing the professional option. The most recent data shows the median FSBO sale was for $225,000 compared with $345,000 for agent-assisted sales.
- The Vibe. To most people, a For Sale by Owner sign implies an owner who is a bit of a penny-pincher. It’s not unfair to compare the vibe that carries with what you expect from a second-hand store—well-worn merchandise, priced appropriately.
That last could be the most striking reason to avoid the FSBO path, especially for owners who don’t expect to sell to a friend or relative at a price reflecting the close relationship. A full 90% of successful sellers used licensed agents to shepherd their sales, while the majority of the one-in-ten owner-sold transactions were those where the seller knew the buyer.
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In the end, for sellers who started out as FSBO experimenters only to later switch to the professional choice, the FSBO ‘fizz’ ultimately fizzled out. A call at (561) 316-6800 to avoids that experience!
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