The first thing when engaging a FSBO is to understand the reasons a seller chooses to attempt to sell their own home. Number one of course is financial. They want to avoid paying that 6% percent commission. FSBO’s learn quickly that any perspective buyers are going to insist they lower their price 6% being they’re not paying a realtor’s commission. So the commission issue almost always ends up a wash.
Many times clients turn into FSBO’s as a result of less than competent real estate agent. Once the seller’s confidence in a real estate agent is lost it’s difficult to regain. Only we, real estate agents, as an industry can answer for that by being most professional.
FSBO’s often deal with sparsely attended open houses. Open houses represented by Realtors seem to be experiencing a lot of traffic. We’ve all shown houses where the perspective buyer will say “Oh, my God, who picked out that horrible carpet.” Buyers are reluctant to criticize the home when it’s owner showing it. That’s why they use Realtors to express their concerns.
Real Estate agents introducing their buyers to a FSBO realize they will be negotiating with the owner himself who in most cases has never seen a contract before. Agents realize that for the most part they will be doing both ends of the deal to get to the closing table. It’s a lot easier to simply introduce them to a listed property.
There are many reasons FSBO’s find a low rate of success, in only about 5% of the time. It’s difficult for the average home owner to compete with the marketing available to today’s real estate agents. Exposure in real estate is paramount. But FSBO’s are part of the market and inventory. Developing a working relationship with them can in most cases prove valuable to both the real estate agent and the FSBO.