FIVE MISTAKES FSBOs MAKE WHEN SELLING THEIR HOME II

Last week, I started a deep dive into the psychology of a FSBO and in this post, I continue that dive. I am doing this for two reasons. First, if you are doing a FSBO, you may glean some insights into how you might close a deal more quickly and put more money in your pocket. If you are a home buyer, or thinking about selling your home, well, you will learn what vital contributions I, as a licensed real estate agent, can make towards a successful purchase or sale.

In the previous episode, I focused on the why behind a FSBO and how FSBOs may ready their home for market and how they may attract potential buyers. Today, I examine what happens when a buyer shows up at the front door. And this brings me to reason #4 why a homeowner tries the FSBO route. FSBOs believe every lead is qualified and every house sells itself. These twin beliefs trip up FSBOs every time. Because they don’t qualify their leads, they waste gobs of their time showing their homes to someone who’s just declared bankruptcy and is looking for the FSBO to owner-finance the home. Because they don’t qualify their leads, FSBOs get to show their homes to a lot of tire-kickers. This is where I step in as a professional real estate broker. When a customer calls me, I know that my first job is to be polite and positive. My second job, before we see any houses is to prequalify that customer. I want to the customer to give me as much information about themselves and what they are looking for as possible without driving them away. I’ll even have the customer contact a local lender… someone who will be glad to pre-qualify the prospect. Now that a customer is qualified, I turn them into a client and away we go.

It is step #4 that invariably drives FSBOs to call me. That being said, occasionally a FSBO manages to stumble through step #4 because the home is being sold to someone they know, a family member, a colleague at work, etc. So, this brings me to reason #5 why a homeowner tries the FSBO route. FSBOs, like our former President Trump, believe they have mastered the Art of the Deal, that they are outstanding negotiators. If the thunder don’t get the FSBO, then the lightning will. Let me illustrate. So, the FSBO has a qualified and motivated buyer. And in the excitement, the FSBO invariably blurts out the sales price they are seeking. All good negotiators know never to lead with price. FSBOs are also expert at digging in their heels. And, all good negotiators know that if you want a hassle-free closing, you must Be Reasonable!

Real estate negotiations and contracts fall apart at an alarming rate for a myriad of reasons. The buyer gets cold feet. The buyer is surprised and or overwhelmed by the home inspection report. The buyer has issues getting approved for funding. The FSBO is caught with his pants down when the appraisal comes back. Now, for a professional like me, these issues pose challenges. To the FSBO, it’s like Chicken Little crying, “the sky is falling.” So, what is it that enables me to confront obstacles calmly? For starters, ‘I’ve been there, done that’ multiple times. Second, I have professional resources I can rely on. I have vetted the better home inspectors. I can recommend local lenders. I have walked a client back from the ledge on multiple occasions. I also have the opposing real estate agent. Both of us want to get the deal done for our respective clients. And, we will do almost anything to get that job done. And, we usually succeed because we will be reasonable.

Many real estate agents will agree with me that more than half their job is holding the deal together. Buyers and sellers have several contractual “outs” during the due diligence period. And, there may be something like a weather event or a pandemic that may extend deadlines laid out in the contract, or require you to do a little more that you expected. No big deal. As long as the buyer is still serious about buying a home, I and my counterpart will be reasonable during the process.

So there you have it. The five errors homeowners make going down the FSBO rabbit hole. #1.Tripping over dollars to save pennies. #2. Over valuing their home. #3. No marketing. #4. Not qualifying the buyers and #5. Failing at closing the deal. And, you also have a better understanding of what, I, as a professional real estate broker brings to the transaction. #1. Reminding the homeowner that time is money, also. #2. Pricing the home so the buyer has bragging right. #3. Getting eyeballs and #4 qualified eyeballs to look at the house. #5. Getting the deal to closing. No matter the obstacle. So, now you know a bit about FSBOs and a bit about what I do to help FSBOS and my clients sell their homes more quickly and for more money.

To learn more about real estate in Emerald Isle, NC, Bogue Banks or the Crystal Coast, sign up for my blog on my website, www.EIHomesforSale.com, and subscribe to Emerald Isle Vacation Home Specialist on You Tube. To receive my newsletter or my book, "How to Enjoy Selling Your House", text your email address to: 919-308-2292. Stay well and stay safe.