For real estate agents, an FSBO seller can either be an opportunity in disguise or a thorn in your side. As the Do-It-Yourself (DIY) trend becomes a part of American culture, uninformed FSBO sellers multiply but have the incorrect perception about the home selling process - which is why they need you! Now is a great opportunity to learn how to take advantage of the FSBO sellers' market. Who knows, they could be your next niche market!
In this article, we will identity 4 FSBO seller heart aches: Negotiating the right price; comprehending completing and submitting paperwork to the correct entities; getting off the marketing at a reasonable length of time; having enough time to devote to all aspects of the sale - and offer tips to overcome them.
1. Negotiating the right price
The most difficult task for FSBO sellers is getting the price that they asked for. According to NAR, the “average FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales” - a $59,000 increase.
Pro Tip: Communicate your negotiation skills, market knowledge and your ability to leverage your network. You can increase your value to FSBO sellers by letting them know that you can get a better price for their home – based on statistics.
2. Comprehending, completing and submitting paperwork to the correct entities
With plans and permits, property tax, title, proof of homeowner’s insurance and more – understanding and comprehending all of the details in the paperwork involved in selling a home is not easy. Explain to the FSBO seller that there are repercussions for missing or incorrectly filling out paperwork such as an increase of time on the market, buyers withdrawing from offers, the price could decrease and more.
Pro Tip: Let the FSBO seller know that the paperwork can be extensive and confusing, with a lot of boring legal jargon. You can increase your value by demonstrating your expertise on paperwork, housing regulations and your ability to read between the lines or identify fine print details.
3. Getting off the market at a reasonable length of time
As you know, there are a lot of steps needed to complete the home selling process. From taking high-resolution photos, open houses, negotiating price, packing, moving and more, the selling process length could dramatically increase if executed incorrectly. Paperwork can go missing, inspections fail and setting an incorrect price are common mistakes that extent the listings time on the market. If the FSBO seller is balancing a full-time job and a family, this is could be even more likely because there are a lot of priorities requiring their attention.
Pro Tip: Increase your value with FSBO sellers by reassuring them that you can not only sell their home for the right price but at a reasonable length of time as well.
4. Having enough time to devote to all aspects of the sale
An FSBO seller may not realize it but selling a home is a full-time job, not to mention the additional work of looking for a new home, packing, moving, going to work, dropping off and picking up the kids at school, and everything else that life demands? With so many moving parts, the whole process can be stressful and overwhelming for FSBO sellers, but that’s where you become more valuable.
Pro Tip: Demonstrate your ability to take on their responsibilities and ease their stress. Let them know that with your professional expertise and guidance as a real estate agent, they can focus on other aspects of their life while you manage all the aspects of the home selling process for them.
When you encounter an FSBO seller, appeal to their needs and heart aches. Let them know that you can help them negotiate the right price, that you are an expert in processing their confusing paperwork, that you can get their house off the market at a reasonable length of time and that they will have more time to dedicate to other aspects of their life while you take on their home selling responsibilities.