Home Selling in 79924>Question Details

L. Suzanne H…,  in El Paso, TX

What is the biggest mistake make made when listing a house by for sale by owner?

Asked by L. Suzanne Holmes, El Paso, TX Thu May 16, 2013

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The biggest mistake is not knowing how real estate works... its like a person going into a hospital and doing their own operation.... So much money can be lost because they have no idea what they are doing... If you need an operation, hire the best... If your car breaks down, hire a professional.... you wouldn't go to your baker for an oil change...
You get the point
4 votes Thank Flag Link Thu May 16, 2013
The biggest mistake is not pricing it correctly. In addition to pricing and market info a Real estate agent is available to show your home. If you work outside the home coordinating showings can be a challenge and you want it shown as often as possible. The majority of homebuyers are working with agents and they are going to show homes that are convenient to show first. Your home gets shown less. If you have the time, the energy and desire to sell it FSBO then give it a shot. If you decide that isn't the route you want to go I'd be happy to discuss it with you
Web Reference: http://Elpasotxliving.com
2 votes Thank Flag Link Thu May 16, 2013
Thousands of closed real estate deals over decades and I can count on one hand the number of purchases that did not have at least one Realtor involved. My closing attorney told me they account for about 1% of her volume, way more than my percentage. However, she also told me that out of that total number 98% of those were between relatives. I thought that was very interesting. I have never heard anyone break down a profile on a FSBO before that conversation. So market to your rich uncle.

Sellers think the Realtor’s primary job is to find a buyer, I disagree. The most important part of the job comes AFTER the deal goes to escrow; I call it holding it all together. One of my Realtors calls it hostage negotiation.

What else? No E&O insurance, lack of experience, hoping the selling agent will do all of the work for half the money?

I went to the dentist a couple days ago, yet I have my own Dremel drill with all kinds of attachments.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Fri May 17, 2013
I'm not going to quite equate selling a house yourself to performing surgery - it CAN be done and it isn't as terribly complicated as some would like you to believe. You are on a real estate website frequented by real estate agents asking this question. Real estate agents have a vested interest in protecting the idea that buying and/or selling a home is an extremely complicated transaction that NO ONE should ever take on by themselves because the stakes are simply too high. As a real estate broker, I will tell you that there is definite value to using a professional when selling your home, or buying one. I'm not going to give you a biased answer and tell you with 100% certainty that if you tried to take on a FSBO yourself, it would end in a disaster. The probability IS significantly higher however.

Using a real estate agent is as much as matter of convenience as it is a matter of "experience". It's the security of knowing that the transaction will be handled professionally and won't turn into a gigantic mess. I'm pretty certain that I could do my taxes myself, represent myself in court, and fix my own brakes - but doing those things would take time away from what I do to make a living. If you don't value your time, or have lots of it, then I would say - try to sell it yourself for a few months. You'll probably realize the value that a professional offers and decide ultimately to list it anyway - after dealing with the questions you don't have the experience to answer, the requests, the phone calls, the emails, the strangers knocking on your door, etc. etc. etc.

The bottom line is - it's relatively easy to figure out what your house should be priced at, take some pictures, plop a sign in your yard, and say your house is "for sale". What you don't have the experience to navigate - is the "unknowns" that will inevitably occur throughout the transaction. Additionally, you don't have access to the MLS, other marketing avenues, or network to increase the odds that truly qualified will ultimately "compete" for your home.

Hope that helps!
1 vote Thank Flag Link Fri May 17, 2013
Hello Terry, I appreciate your reply.
I'm working with a real estate investor who bought and sold homes w/o and agent. He's free. We will try to sell first if it doesn't sell after a few months we'll consider other options.
Right now we're posted on three different sites to include FSBO.
Thanks again.
Flag Fri May 17, 2013
not knowing/having the necessary forms or the knowledge of how to complete the sale.
1 vote Thank Flag Link Fri May 17, 2013
The biggest mistake made by a seller when listing his/her property for sale by owner, is not having a REALTOR on their side.
1 vote Thank Flag Link Thu May 16, 2013
The biggest mistake is that in itself. On average a FSBO will sell for 80% less than a home listed with an Agent.

They may forget some of the legal aspects of selling a home such as disclosures or Equal Housing Opportunites.

They have limited ability to market their homes because most likely they are working a full time job and don't have the ability to show their home when they aren't there.

Most likely they don't have sales or negotiating experience outside of their own purchases. Let along techniques to increase the amount of offers they will receive in a property.

In ability to recognize offers that have little to no chance of closing verses strong offers.

So these are all factors that play into the situation in addition to that 83% of homes are sold by Real Estate agents.

I say do yourself a favor hire a pro.

Chris Hutchinson
REALTOR®
The Michael Group
972.809.0607
http://www.chrishutchinsonrealestate.com
1 vote Thank Flag Link Thu May 16, 2013
Suzanne:

Not understanding the market (what do you know about the 13 homes for sale in your immediate neighborhood?), not having the proper tools to market effectively on the internet (where nearly 90% of buyers begin their search (check out http://www.exitrealty.com/dms)), not having access to an electronic lockbox system that allows a buyer's agent to show your property without you having to drive across town from the upper valley.

Most importantly, not realizing that getting an offer is the easy part - most deals fall apart trying to resolve contingencies just prior to closing. And, statistics show you will probably net less than letting a REALTOR handle it for you.

Why risk the biggest investment that you have probably ever made? Give me just 20 minutes of your time and then decide if you still want to give it a try. (915) 549-1770
1 vote Thank Flag Link Thu May 16, 2013
Hi Suzanne the biggest mistake is first hit using a realtor! Lol why? Because we do CMAs we can estimate value for you. Also we negotiate on your behalf. One of the biggest dis services you can do to your self is limiting your exposure. We invest so much money with the Mls trulia and visual tours. So using a realtor in the long run will be the best bet. If you would like a free CMA give me a call. Ill help you out! 4433598
1 vote Thank Flag Link Thu May 16, 2013
Any REALTOR will tell you that the biggest mistake is not having it listed with a REALTOR in the first place as FSBO properties account for about 9% of all property sales each year. Now if your property has the exposure and you have money to dump into advertising and you can sell your property without having it listed with the MLS, more power to you. :)
1 vote Thank Flag Link Thu May 16, 2013
Not listing it with a realtor.
It's not like selling a car.
There are so many moving pieces that if you are not actively buying and selling houses all the time, there are just too many details for a normal buyer and seller to keep up with that it exposes them to lots of risk with little or no return.

FSBOs have people coming in their house they don't know and don't know which banks will close on time, which title companies are reputable, what closing costs should be, what marketing resources to use most effectively, where to price as a FSBO.

FSBOs sometimes will tie up their house for a couple of months during the prime selling season with a buyer and lender who can't close....and that alone can costs you way more than you might save.
0 votes Thank Flag Link Fri May 17, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Dennis really did pull the curtain back just a bit.
Unless you are an experienced bome buyer and seller, you are entering a gun battle with a bat. You simply do not have the inside information, the stategies or insight regarding what is happening on the other side of the table.
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It would be understandable if a FSBO seller were to jump up and down with joy when receiveing a full price offer for their home and the buyer has not even looked at it! Wow, what a deal! That was EZ. Unless you know the business, you can not realize what is actually taking place.
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There is no single biggest mistake.
It is like waling into a building full of swarming bees. You simply don't know which one is going to sting you or exactly how that sting will affect you.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Fri May 17, 2013
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