What type of prospects are you dealing with?
When you decide to sell directly to a buyer, you will inevitably get tons of calls from bargain hunters and discount shoppers. Most of them will be calling with the sole intention of finding a desperate or uninformed seller who is willing to sell thousands below fair market value. This is very much the type of buyer you will find at a garage sale.
In most cases, the reason to go FSBO is to save the commission. It is for this same reason that bargain hunters shop FSBO rather than go to real estate firms. So the FSBO naturally attracts a much larger proportion of discount shoppers and unqualified prospects. The statistics show that the most qualified buyers prefer the convenience and security of purchasing a home that is represented by a professional. A home purchase is a huge risk and there is an overwhelming amount of margin for error. Since the average buyer knows little about homes, they enjoy the services provided by both a buyers and sellers agent. They are well protected because there are two state licensed representatives working together to ensure quality results.
Most buyers who move to the Sarasota / Bradenton area will go directly to a real estate agency. They do this because they want the security and convenience that real estate firms provide them. Unfortunately, this is one of the main disadvantages of selling on your own. Most agents and their buyers avoid the liability showing an owner represented home. Some brokerages even mandate against doing a transaction with an unrepresented seller. The average seller is not licensed by the state, has little accountability, may fail to disclose or even lie about problems with their home.
Yes, there are direct buyers that will seek out the for FSBO first. This is usually an experienced buyer who knows how to get a deal. They know that FSBO’s sometimes price their homes too low. Usually, Its just high enough to pay off their mortgage. They either don’t care or realize that they are selling well below what a realtor could net them. Sometimes an owner has been burned by a bad salesperson and will sell below market value, just to avoid dealing with that pain again. Either way, FSBO’s are the perfect target for the confident bargain hunter. This is the challenge of the FSBO; to identify and deal with bargain hunters.
Selling a home and also guarding yourself from buyers agents and bargain hunters is fun for some but a nightmare for others. After a time of it, some FSBO’s would rather experience the feeling of success by accepting a low offer. They can tell their friends and relatives that they were a success. The pride of selling on their own is the payment for selling well below fair market value. The time on the market is proof enough that they got what the home is worth. They will never know if it was worth more. Discount shoppers love the weary FSBO. The weary FSBO saved the commission but lost much more. They never got to see the offers from the right buyers.
The main purpose of selling FSBO is usually to save the commission. I recommend hiring Prime Time Real Estate Inc. before you create internet marketing history that tarnishes your chances of looking like the new hot listing. The commission is a marketing tool used to generate a higher sale price. Ultimately it is the buyer who pays when the seller achieves the projected net at closing. Our experience pays you well. We know how to do it right; how to cut through the red tape. We touch all the bases. We don’t take shortcuts. We don’t want any hesitations or problems at the closing. -Dan Novak, Prime Time Real Estate Inc.
Prime Time Real Estate Inc. 