If you choose the For Sale by Owner (FSBO) route, be aware of the two most common stumbling blocks that stand in the way of a successful sale-limited marketing exposure and attracting serious buyers:
Limited Marketing Exposure
Your classified ads can be overshadowed by those of the larger brokerage firms, which professionally showcase a number of properties within a single ad.
Only a licensed real estate agent can list your property with the Multiple Listing Service (MLS*). That means the largest source of well-qualified contacts-real estate agents-is out of your reach.
Real estate agents have no incentive to show your home to buyers because they cannot earn a commission on the transaction. One exception-if the buyer has a "buyer's agent," you could offer to pay a small commission to the agent or split the commission fee with the buyer.
Attracting Serious Buyers
Typically, people who visit FSBO properties are either "just looking" or bargain hunters.
Some who are "just looking" are curious passers-by. Others may eventually become serious buyers, but are now likely only testing the waters before involving a real estate agent.
Bargain hunters are just that. Knowing that you're saving on commissions, they see a chance to chip away at your asking price.
Given the challenges of marketing and attracting serious buyers, For Sale by Owner may work to your advantage if you already have an interested buyer, such as a neighbour or a friend-of-a-friend who's already inquired about your home.
