The biggest lie For Sale By Owners tell themselves

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I will save money by selling it myself.

For Sale By Owners (FSBO) must be the same people who think they can fix the plumbing leak or electrical problem. How hard could it be? We’ve all heard the story. The husband tries to fix it himself and when he floods the kitchen, his wife calls the plumber and pays triple because it’s now and emergency and things have been ruined.

There’s a reason why municalities require electric and plumbing to be conducted by licensed professionals. But if you want to sell your home, try and save money and don’t call a realtor.

How hard could it be? The identical condo in my building just sold for $600k. I’ll price mine at $610k and wait for the offers. I don’t have to move for three months. Except:

1. The unit upstairs has upgraded kitchen and baths. Now Mr. FSBO is $40K over the market price.

2. The sold unit took 90 days to go under contract and 45 days more days to close. And that was at a fair market offering price.

3. The sold unit got the price because there was an agent who used his expertise to market this unit to the real estate community and potential buyers all over the country. There were 75 showings (not including 15 open houses) before and offer came in.

4. The condo had two offers (both start at $580k) and ended with a highest and best round of bidding.

So Mr. FSBO will wait and wonder. No offers for two months. He is moving in 30 days.

The additional carrying costs for 7 Months $25,000

Staging of the vacant unit $5000

That’s $30k or 5% that could have gone to pay the licensed professional.

Mr. FSBO in the end settles for $530K or $25k less than if he’d used a realtor.

All in Mr FSBO saved himself $30k in realtor commisssions but spent $55k to do it. And that’s if everything else in the transaction went smoothly.

But my friend in Texas sold their own house 4 years ago and got a good price. How hard could it be?………..Even a blind squirrel finds a few acorns.

HOBOKEN condos 2007
Avg Days on market 66
50% sold in first 41 days
information deemed reliable but not guaranteed

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