Friday, March 15, 2019

FSBO - Good idea or bad?


By Kevin Ronan


What is a FSBO? No, it is not a strain of the flu or an invasive plant growing in our lakes. FSBO stands for For Sale By Owner. A seller has decided to market and sell their own property without the assistance of a local Realtor®. The most common reason for selling your own property is the desire to not pay a realtor's® commission and saving thousands of dollars in commissions is very attractive. However, many FSBOs also suggest their desire for  greater control  of scheduled buyer showings and open houses, listing activity, price negotiations, security and closing activities.

Are you considering going FSBO? With so much information online, how easy could it be to snap some pictures, write a property description and post online? The most common methods of marketing the old fashion way include yard signs, word of mouth with friends and family, open houses and advertising in local community publications.

In 2017 The National Association of Realtors® reported that FSBO sales accounted for only 7% of all residential sales. Why is it so low ? 

Experts agree, the number one reason is because the FSBO properties were priced too high for the market. By preparing a Comparative Market Analysis (CMA) with the assistance of a local Realtor®, they can help you understand the local market conditions and recommend a suggested list price. It is also reported that sellers do not have the time or the resources to market the property themselves. 

Incredible to believe that just under 50% of all FSBO sellers reportedly did nothing to market their property. A combination of poor listing visibility and lack of multimedia marketing resulted in low buyer traffic.

In closing while FSBO does work seamlessly for some sellers, that route is not for everyone. Carefully weigh your options and consider if you have the time, resources and emotional strength to go this route alone.  In the end, if you don't have the time and resources, then consider seeking a local Realtor®, who can help you with the market rate and marketing so that your property can be sold quickly and with expertise.

I hope this article sheds some light on the challenges you face when you follow the FSBO path.  Please contact me or your local realtor if you have any questions. 

This article was brought to you by Kevin Ronan, Associate Broker® affiliated with Alliance Realty, 290 Bridgeton Road, Westbrook .For more information, contact Ronan by email at Kronan388@gmail.com or by phone at 207-838-4855



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