Is Selling FSBO Ever A Good Idea?

Question

In the years that I've represented primarily BUYERS, I find that there has been challenges navigating transactions where the seller is a For-Sale-By-Owner (FSBO) AND inexperienced in handling a real estate transaction. Some FSBO transactions were smooth but others were challenging. In CA a third party, escrow agent, generally holds the EDM, but at times, the FSBO wants to hold the EDM or is unaware of how to hold the EDM. Other challenges also included ,1. FSBO sellers who had a difficult time screening the buyers. 2) Home Pricing Errors. 3) Negotiation challenges.

I think it take a special buyer's agent to complete a deal, from contract to close, with a FSBO listing on the other side of the table.

If you have worked a FSBO transaction (either representing the buyer or ultimately the seller who list the property after attempting a FSBO deal), SHARE YOUR EXPERIENCE!!!

Bill B. · Answer

Or they've dealt with one of the 50% of realtors that sells 1 house or less per year. The kind that can’t fill out a form, checks both boxes in an either or situation, and can’t be bothered to respond to calls, texts, or emails. Most of all, they just want you to buy something, anything, so they get paid. They want to be paid 5 figures or more but can’t be bothered to learn more than their customer.

Abel Curiel · Answer

Hello @Lorraine Hadden,

I’ve represented several sellers who were previously listed FSBO.

The 2 most common experiences are:

1. Seller reluctantly decides to sell with me after weeks of negotiating commission and asking price. These sellers can be more critical of everything you do i.e. the property description posted, choice of images to upload, frequency and time of open houses, negotiations etc. 2. Seller is an investor who sells dozens of properties each year (some of them via fsbo) but ultimately give in and choose to let you list b/c they’re having trouble offloading this particular property OR want to spend their time on something else. These sellers hand you the keys and stay out of the way until its time to sign a contract.

To answer the title of your post, selling fsbo can be a good idea if:

- you have experience selling RE

- you price the home to sell

- you have systems in place to collect inquiries and facilitate showings i.e. call center/email/google forms for screening inquiries, showing agent, lockbox, security alarm, etc. - you have dozens of local agents who can market the property for you and bring you a buyer

- you are listing in a desirable area with low-inventory - you are not in a rush to sell