5 Things to Consider Before Going the FSBO (For Sale By Owner) Route

Selling your home by yourself can seem like a tempting idea. You get to control how your home is marketed, you can negotiate with buyers directly, and the biggest probable reason for why you would go FSBO–you can potentially save money.

While these concepts sounds good in theory, they might not all come to fruition. They might even cost you more money.

Consider that FSBO sites only garner a fraction of web traffic compared to major online listings databases. Or, the amount of time that you would spend qualifying prospects to view your home. These things and others are important to contemplate before deciding to sell your home by yourself.

1. Do I Have Enough Time to Conduct Showings and Manage Inquiries Myself?

Buyers scroll through listings all day—on their phones and on their desktops. It’s the industry standard to reply to an inquiry within 14 minutes. But you might not be able to. You’re working, you’re at the gym, you’re running errands.

And that’s where a real estate professional comes in. The best real estate professional will ask the RIGHT questions to save your time and hers.  An experienced real estate agent will not only weed out time-wasters, but will also ensure that only qualified buyers set foot in your home. 

2. Do I Have a Solid Enough Understanding of the NYC Sales Market and How Transactions are Executed?

What’s the current absorption rate in your neighborhood? Are homes staying on the market longer or shorter than last year? How do similar apartments in the same price range look in your neighborhood?

These are all important things to bear in mind before going FSBO. A real estate agent can fill you in on all these statistics. The agent should be to provide you with a CMA (comparative market analysis) and have a wealth of knowledge about what’s going on in the market in your neighborhood. The agent can additionally offer an unbiased opinion of your home and how it’s priced. 

Another piece of the puzzle is knowing HOW transactions are executed. Is your closing schedule on-time? How long does it take to complete a mortgage-contingent sale? Is the buyer dragging his/her feet? Knowing these processes are vital to conducting an orderly sales transaction. 

3. How Do I Get My Home 'Out There'?

Marketing a home is not easy. Relying on FSBO sites is not enough. Your marketing strategy must be comprehensive. Print and digital advertising are both needed. 

Are you familiar with SEO and social media marketing? Do you know how to send bulk mail through the post office? And perhaps most importantly, do you have a network of over 30,000 individuals who have pre-approved buyers? You might not, but a real estate agent will. 

A REBNY (Real Estate Board of NY) certified agent is connected to 30,000 real estate professionals who have clients seeking homes. To steer the sale, these agents will share a commission to get the job done for you in the most efficient way possible. 

4. How Do I Protect My Privacy?

Web privacy is a major concern these days. By going the FSBO route, you’re publishing your name, your address, and part of your net worth to the world. This could pose a huge security risk. 

In addition, there are reported cases of theft at open houses. If selling on your own is on your mind, then your home and personal security must also be part of the equation. 

5. Do I Negotiate Well? ​

The art of negotiation is a big part of selling a home. You need to be able to take criticism of your home and keep your cool. FSBOs often get approached by deal-hungry buyers who want to take advantage of your naïveté.
Here’s where you need a shark of a real estate agent.

But there are also times where you need to be reasonable. Say your home had a less than satisfactory inspection report, are you prepared to negotiate and know the value of concessions? 

In addition, one must have a full grasp of how to negotiate with a buyer’s agent. Would you attend a trial without your attorney while the plaintiff has their own counsel? That would make NO sense! So then why enter into a transaction for one of the biggest 
sales of your life without expert help? 

Biggest Reasons Why FSBOs Fail

  • The list price of the home was wrong from the start.
  • Not making the home accessible when the buyers schedule dictates.
  • The home was not prepared properly to sell. This can include fixing items that should have been repaired as well as knowing how to stage a home properly.
  • The home was not marketed properly including presentation, photography and internet exposure.
  • Not knowing how to properly qualify a buyer to ensure they can get a mortgage.
  • Not knowing how to negotiate home inspection repair requests.
  • Being stubborn enough not to offer a buyers agent a commission if they bring a buyer.

These are the biggest reasons why for sale by owners fail. Knowing this make sure you pay attention to these things to increase your chances of success! As you can see, before selling for sale by owner, weighing the pros and cons is a wise move.

Additional Home Selling References

Whether you’re looking to buy a new home or you’re a landlord seeking a new tenant, many will agree that Dondre D. Roberts is an expert in the complex field of New York City real estate. Having sold and leased $10 million dollars in real estate, Dondre can be counted on for his expertise, drive and tenacity to fight for his clients.​ He has worked for Nest Seekers International, a global real estate firm, large landlords and mom and pop owners alike. In his spare time, Dondre enjoys brunching, dog-sitting, traveling, coffee sipping, and reading the New York Times. He also likes Darth Vader, is a proud Bronxite, and is left-handed.