Part of being human is our ability to overestimate. This is especially true when it comes to For Sale By Owner Palm Beach sellers (FSBO) attempting to price their homes on their own. The home pricing process is complicated and can make or break your deal. Below are costly mistakes For Sale By Owner Palm Beach sellers need to avoid.
Pricing your Palm Beach home can be an emotional process, but it’s these emotions that can get you in trouble. Your home is definitely worth a lot to you and you tend to think that the improvements that you’ve made are always worth their weight in gold.
For example, to you, your swimming pool adds a lot of value to your home. Also your garage is practically a living room; you have successfully transformed it to create more room! The issue is, potential homebuyers might actually prefer the garage to stay as a garage. And maybe they are not particularly impressed with the pool.
To be successful, For Sale By Owner Palm Beach sellers really have to understand the market they are working in along with what potential buyers are looking for.
Potential Palm Beach buyers are drawn to listing with great photographs. However, the only things worse than poor photographs are no photographs. Instead of using your phone to take pictures of your home, consider paying a little more and having a professional come in to shoot.
Don’t Skimp on the Time Commitment:
When potential buyers ask questions about a listing, they expect instant answers. They also want to view it whenever they want. However, many FSBO sellers only show the home when it’s convenient for them. If a potential buyer isn’t able to schedule a viewing, they will move on to the next home.
Not Qualifying Buyers:
Have you heard the saying: “If you have to ask how much it costs, you can’t afford it”? People always tend to look at expensive products, houses included, even when they know they can’t afford them. Real estate agents weed out the “casual lookers” out by getting their financials and determining whether they are creditworthy. For Sale By Owner sellers don’t always know to do that. The reality is most buyers are reluctant to share their financial information directly with sellers, but they will work with agents and their lender to validate their qualifications.
When making your sale, you are supposed to bring out your “inner Spock” by using logic as opposed to emotion. Do not be afraid of taking the first offer because you are afraid it might be the wrong move; it might actually be your best one.
Secondly, because it’s your home, you are emotionally connected to it. Sellers tend to think of their property as special because it is their home, not just another house on the market. They have an emotional attachment to it, and when they try to sell, the facts get lost in the emotion.
You know every corner of your home, and you might have given tours to guests. That’s great but it is not the same as showing it to prospective home buyers. Some potential buyers, for example, don’t want to be shown around; rather they want to do it by themselves and to explore by themselves.
Another issue that arises when the homeowner shows the house is that can cause the potential buyers to be uncomfortable with being candid about their concerns or issues with a home. As a result, this creates a communication problem, and the homeowner loses valuable feedback on how to better show the home next time.
Putting up a “For Sale” is not enough. In addition to not leveraging the MLS, For Sale By Owner Palm Beach sellers do not fully utilize marketing strategies like:
Poor Interaction with the Buyers’ Agents:
In most cases, a homebuyer will enlist the services of a real estate agent who don’t always like working with For Sale by Owner sellers. It is believed that FSBO sellers can be difficult to work with and require extra time over working with a listing agent.
To make it all worse, some FSBO Palm Beach sellers don’t offer a buyer’s agent commission, or when they do, it is extremely low commission. If the agent isn’t being paid at all, or isn’t being paid very much, they have little incentive to encourage the sale.