As the red hot real estate market cools off, homeowners are finding the demand for their properties slowing down to traditional levels. No longer is there a stampede to make offers on homes. As this evolution occurs, one area of the real estate market is less traumatized than others ? the FSBO market. For a variety of reasons, a FSBO property priced appropriately will typically receive more interest than those listed by agents. There are a few reasons for this.
As a FSBO seller, it is important to understand that people assume things about you. They assume you are unsophisticated. They assume you can be had. Most importantly, they assume they can get a deal on your property. Is any of this true? Not really, but you should not complain. These assumptions are going to help you move your house quickly.
Real estate investors love to hunt for and buy FSBO properties. This occurs because the investor understands that you have room to move on the price without an agent involved. They also assume that the property may have more potential than you realize as a FSBO seller, so they can buy the property and flip it for a nice profit. Regardless of their intentions, rest assured real estate investors will be knocking down your door if you list your property for sale by owner.
With traditional buyers, the situation is not much difference. They perceive a FSBO property as one that has a lot of potential movement on the price. They also often feel they are going to get a deal on the property. With these assumptions being made by buyers, you need to consider you approach as a FSBO seller.
Many FSBO sellers go out of their way to make it clear to potential buyers that they know what they are doing. A better approach, however, might be to play upon the assumptions. If a potential buyer thinks they can take advantage of you, why disavow them of this assumption? The point is to sell the property. As long as you know your bottom line and stick to it, who cares? Let them think they are getting a deal. When you walk away with more than your bottom line, who will be smiling then? I am not suggesting you do anything nefarious, just leverage your position to get the best deal you can for a poor, old FSBO seller!
As the real estate market returns to a more typical pace, sellers need to figure out how to attract buyers. Going FSBO is definitely one way to do it.
