For Sale By Owner Manhattan Beach FSBO Homes

"FSBO" Manhattan Beach

You probably haven't run across many "FSBO"s in Manhattan Beach and there's a good reason why: according to data from a recent National Association of Realtors (NAR) study less than 10% of them actually sell. And far less at the "luxury" price point found in 90266 from my perspective. So, why is that. A bunch of reasons but let's look at the top 5.

1) FSBOs usually price their homes incorrectly. That's a polite way of saying too high. I get the part about not wanting to pay real estate commissions. Yes, it is a lot of many and the public often doesn't get exactly what it is that Realtors do so wanting to save tens of thousands of dollars (or more) is just human nature. But what happens to most "for sale by owners" is that they then add to the list price. So you have buyers thinking they are going to get a deal buying directly from an owner with no agent involved and owners often thinking they can pocket even more than a standard listing. Good luck with that one.

2) FSBOs don't understand the real estate transaction process. This covers everything from the actual contract paperwork to handling escrow, to appraisals, closing, showings and more. It takes most agents a few years and at least a half dozen transactions to figure things out. There's a ton of moving parts pulling all of them together successfully takes an awful lot.

3) FSBOs can't properly expose their property. Sure maybe they can put it on Craigslist and even a few real estate portals but there is no way that a FSBO can get the benefits of syndication from the MLS and be on hundreds of websites and exposed to thousands of agents.

4) FSBOs do not know how to properly present their home for sale. This includes everything from professional photos, flyers, floor plans, property descriptions, single property websites to staging, repairs and painting.


5) FSBOs do not know how to evaluate buyers or screen offers. I have met many "civilians" ie the real estate buying and selling public, who know the difference between a pre-approval and a pre-qualification letter or a direct lender or a mortgage broker. And Mr. FSBO seller do you really think that buyer is going to disclose their true financial circumstances to your while you are negotiating price?

Here's the best reason not to sell your home without a licensed real estate professional: you are still liable for and have to complete a number of mandatory disclosures. Whether you have an agent or not, failing to disclose or worse yet not being totally candid about your property condition can create far more problems and cost you more after the close of escrow than any potential saving you think you might be able to achieve.

Comments

Post a Comment