The Buyer’s Perspective

Why Buyers Won’t View FSBOs!

76331461. The prime motivation for self-selling is to save money by avoiding a real estate commission. That should mean that FSBO listings are always priced 5% below comparable MLS offerings. But, of course, that never happens.

2. Buyers hate FSBOs because sellers utterly lack perspective. Unlike a real estate agent who is in and out of candidate properties all days, the self-lubricating seller knows only his or her house intimately, but will not hesitate to insist it’s far superior than every other one in the hood. Buyers believe nothing a FSBO tells them is actually credible.

3. Buyers hate dealing with FSBOs because it’s not easy. There’s no receptionist to take your call, no appointment desk to schedule a showing, and no guarantee you can see it when convenient. Plus there  will be no agent to include two or three other comparable listings during your tour, giving perspective and balance.

4. Experienced buyers shun FSBOs because they understand the importance of market research, which no DIYer is ever going to provide. A buyer dealing with a competent agent will have access to detailed comps not only for the street and the area, but for similar-type homes in the region. You need to understand not just recent selling prices, but days-on-market, price adjustments and overall market value trends. A good agent will also tell you what external factors influence a property’s price, like proximity to shopping, or a parking lot, or transit, a multi-residential building, or a roadway that might not look busy when you first see it. Local knowledge is critical

5. Buyers hate FSBOs because the negotiation process can be emotional, difficult and personal. Sitting across the kitchen table arguing about price, closing date, inclusions and conditions is as much fun as a divorce. An agent gives you distance and leverage, and will almost always save the buyer money.

6. Sticking a FSBO sign on your front lawn is an invitation to any thief, con artist or pervert who might be looking for someone to loot, identity-steal or assault. Opening your home to some guy you know nothing about, who merely expreses an interest in ‘looking around’ could be the day your life changes. Do you really want your wife conducting a showing while you’re at work?

7. Buyers take on more risk dealing with a FSBO. If a deal goes bad after closing there’s no listing agent or brokerage to seek redress from. No mechanism for appeal, since it was a private, unbrokered contract. The seller may be gone in a flash, in which case pray you picked the right lawyer and bought enough of the correct title insurance.

8. Cheap people apparently don’t value their privacy or safety. Sticking a FSBO sign on your front lawn is an invitation to any thief, con artist or pervert who might be looking for someone to loot, identity-steal or assault. Opening your home to some guy you know nothing about, who merely expreses an interest in ‘looking around’ could be the day your life changes. Do you really want your wife conducting a showing while you’re at work? Are you a complete idiot?

b0329.  Buyers take on more risk dealing with a FSBO. If a deal goes bad after closing there’s no listing agent or brokerage to seek redress from. No mechanism for appeal, since it was a private, unbrokered contract. The seller may be gone in a flash, in which case pray you picked the right lawyer and bought enough of the correct title insurance.

10.  Cheap, unprofessional, self-serving, naïve folks who think they can line their pockets with even more capital gains tax-free profits. Are these the kind of people you want to haggle with, hand over thousands (or tens of thousands) in the form of a deposit, and then hope closing day actually happens after you’ve already sold your home or arranged financing?

Source: http://www.greaterfool.ca/2013/12/17/knockoffs/