FSBO Woes: Why It's So Hard to Sell Your Own Home

Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who's already living in the home. These circumstances are the exception, not the norm, however. For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards. Here are five reasons why.

1. FSBOs can't list their home in the MLS. FSBOs aren't permitted to put their home in the multiple listing service (MLS) because these industry membership organizations are open only to licensed real estate brokers and agents. FSBOs are also locked out of many home search engines and Web sites, including the gigantic Realtor.com. Sure, a determined FSBO can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home won't receive nearly as much exposure as it would through the MLS.

2. Agents won't show FSBO homes. In a typical home sale, the buyer's agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there's no guarantee that the buyer's agent will be compensated for his or her services, unless the buyer has signed a buyer's brokerage agreement that specifically provides for such compensation. Even if a FSBO offers to pay the buyer's side of the commission, most agents won't want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.

3. FSBOs usually overprice their home. Like most homeowners, most FSBOs honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they're wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home's buyer appeal. Overpricing a for-sale home is a sure way to deter potential buyers.

4. Buyers will feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they'll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they'll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.

5. FSBOs are likely to stumble into legal trouble. Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements (e.g., California). A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.

http://www.mmgweekly.com/w/w.html?SID=418db2ea5d227a9ea8db8e5357ca2084

In the last blog commentary,  I indicated that buyers and sellers in Marshall appear to be at a stand off.  Neither party wants to budge at the moment to make any changes in the market.

Referring to the above MMG Weekly commentary, Fed Chairman Bernanke indicated a "pause" in interest rate hikes.  For buyer's dabbing their two in the market, this is  a good time to jump in and make a purchase.  Other indicators seem to say that long term, interest rates are on the rise, however, at the moment will remain steady.

  I don't see rates coming down anytime soon, though the rate pause is real.  Two many other factors indicate that rates will rise over the next year.   Marshall has lots of high end properties for sale (over $250,000).  Depending on the motivation of the seller,   now might be a good time to take a reduction in price to sell a property.

Review MMG Weekly at www.DCIrealty.net on the Help Center page - Mike

Marshall seems to be following the national trends in real estate the last few weeks.  Nationally, the real estate market has slowed down.  However, prices remain 7% higher than a year ago.  That national average home price is $218,000. 

    Looking at the real estate section of the Marshall Independent, one might think there is an exodus from the town.  Two pages of homes for sale.  That is a lot for here.  On the MLS, Marshall shows 67 properties listed for sale within the city limits.  That is about 20% more than this time last year.

   My observation is that Buyer's and Seller's seem to be in a stand off.  Buyer's have lots to chose from, especially in the high end market.  Seller's seem to be holding their prices.  Each waiting for the other to blink. 

Mortgage interest rates have crept up in the last few months.  Fuel prices have gone up.  What a better reason than to be moving into Marshall instead of away from Marshall.  Reduce that commute time and save some money.

I'm wondering what other influences are at work.  Seems to be more than normal houses coming on the Market.  Lots of new construction available.  Even I'm considering my next spec house and watching the market closely.

Now is a great time to buy in Marshall.  Prices are reasonable, and interest rates haven't gone anywhere yet.  However, this time next year, interest will likely be a whole different deal.  Some predictions even into double digits.  We're poised for interests rates to perform in a similar fashion as they did in 1979.   While there is competition in the market place, its good competition.  Marshall has an many quality homes for sale, but I don't think a buyer would tell you there is too many to choose from yet.  www.DCIrealty.net  

Traditionally, a red front door symbolizes good luck and financial abundance.

In feng shui, a red door front is very fortunate.  It calls attention and uplifts the energy and opportunities coming through your door.  A gold door calls in prospertity and reminds you of the treasure that is waiting for you inside.  A green door symbolizes money, health, and nature; purple calls in spiritual engergies.  Creating good feng shui is a continuous process.  Prioritize your most important changes, make a schedule and allow your house to evolve as you do.

After you implement feng shui solutions to protect your space, you'll want to uplift and maximize the beneficial energy gliding into your home.  Create a sanctuary of light and joy by adding color,  living energy and pizzazz to your entrance.  your goal is to feel excited to come home every day.

In Marshall, one sees many symbols of feng shui in practical use.  A particular restauranteur in Marshall has a lifetime of practice and keen awareness of the practice of feng shui.  It has created for him wealth and prosperity. - Mike