Top 5 Mistakes For Sale by Owner Sellers Make - Team Lally: Hawaii Real Estate

The Top 5 Mistakes For Sale by Owner Sellers Make
Many home owners looking to sell their property consider going FSBO, or “For Sale By Owner”. The idea is to save thousands of dollars on commission fees paid to a realtor. There is a huge difference between selling your home yourself and hiring a realtor. The NAR (National Association of REALTORS) show that less than 10% of For Sale By Owner homes actually succeed in selling without assistance from a real estate agent.

Here are the top 5 mistakes made by FSBO sellers:

1. Failing to have a proper marketing strategy.

Some of the most obvious marketing tools, online home websites and magazines, are by themselves ineffective. The most important aspect of selling a home is maximizing exposure. Realtors often do this through the MLS (Multiple Listing Service), which is the database shared among realtors to show and sell each other’s listings. This is the primary way most homes are sold in the U.S. today. Other agents will go the extra mile and list a client’s home in every online home market imaginable, create content about the property and drive lead traffic through their social media. Team Lally spends over $20,000 a month in marketing the properties of our clients.

2. Failing to properly price the home.
A homeowner’s sentimental value to the home can often skew the pricing and puts them at a disadvantage when selling. Every seller wants to net as much money as possible which is probably the reason they want to forego paying a realtor commision in the first place. Unfortunately, a listing price that is too high often gets the seller less than a listing priced at market value. The number one rule of real estate is that overpriced homes don’t sell!

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3. Failing to disclose or understand the terms of the contract

The Seller’s Disclosure is just one of many documents given to a buyer to let them know about any problems or defects in the home. Law suits could emerge as consequences of not providing crucial forms and documents to a buyer. FSBO sellers are not used to negotiating during the real estate transaction, especially about issues such as earnest money, possession agreements, and inspection dates. Team Lally has full roster of experienced specialists who will handle all the paperwork and negotiations involved in a home sale.

4. Over-disclosing information on social media

FSBOs often have limited resources and experience to market their home. Some will rely on social media to showcase their home which makes sense, since many buiyers looking for a home do search online. Home sellers do however need to be careful about divulging too much information on their personal social media profile. Sellers are increasingly taking to social media to vent about the home selling process. In addition, some sellers will share too much, incorrect or misleading listing information on these social media sites.

5. A lack of home-showing etiquette (especially during COVID-19)

Showings are the first opportunity potential buyers have to get a feel for the home and imagine themselves living there. Sellers can sour the showing by refusing to leave the home, or lurking in the background as buyers go through rooms. Any real estate agent knows that home buyers expect to walk into a clean, decluttered, and well-maintained home. Especially now during the Covid-19 pandemic, sanitizing and disinfecting homes is in the top of things to accomplish. If a home is in obvious need of cleaning, a buyer won’t be impressed.

To get the latest Covid-19 information and its impact on the current real estate market, go HERE.