The Seven Selling Mistakes FSBOs Make!
Mistake #1 -- Pricing your property too high
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! Thinking your home is worth as much or more than it was last year may be a mistake. Prices have dropped. Missouri average home prices have dropped more than 5% and Kansas prices have dropped more than 9%. Price your home to sell. Sellers that think buyers are going to beat them up to reduce the price are making a big mistake. Today´s modern buyer has the same access to technology you do. They know how much your home is worth. A high listing price will cause prospective buyers to lose interest before even seeing your property. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a much lower price. Keep in mind that statistics show there is a direct correlation to sold price and days on the market.
Mistake #2 -- Mistaking re-financing appraisals for market value
With the refinance boom of the past few years we are seeing a lot sellers that believe the refinance appraisal indicates what their home is worth. Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price in order to make the refinance work. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask a REALTOR® for the most recent information regarding property sales in your community or to hire an independent appraiser. This will give you an up-to-date and factually accurate estimate of your property value. The bottom line is that your home is only worth what a buyer is willing to pay for it and a bank is willing to lend for it. In today´s market, lenders are being much more conservative with their appraisals and deals fall apart every day due to appraised values coming in lower than contract prices.
Mistake #3 -- Forgetting to"showcase your home"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers. De-personalize and de-clutter! You want the buyer to look at the home3; not your stuff! That´s the easy part.
Now the hard part. Your decorating style may be perfect for you but not so great for marketing to potential buyers. Take a day and visit local model homes that the builders have staged. They are amazing. They appeal to the masses. You don't see family photos and bright green walls. If you don't know how to make your home look like a model, consider hiring a professional home stager. They are not emotionally attached to the property so it is a lot easier for them.
Finally, when expecting a showing, light a few candles. Vanilla and cinnamon are proven to make people think of home... avoid overbearing scents like floral. Open the blinds and curtains to let the light in and show off the windows. If your showing is at night, turn on the lights, including all the exterior lighting. Don´t forget to clean the garage and all storage areas. You will usually only get one chance at a buyer, so put your best foot forward.
Mistake #4 -- Trying to "hard sell" while showing 
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions. In perfect world, you would not even be there, but that is not feasible with most FSBO´s. So give the buyers plenty of space. Step out on the patio or move into another area of the house. Say something like, "Please, make yourself at home. I´ll be over here if you have any questions." The longer they are in your home, the more likely they are to fall in love. When possible, get the kids and pets away. No one likes a pushy sales-person so don't let your enthusiasm get away from you or the buyers will RUN to the next home.
Mistake #5 -- Trying to sell to "looky-Loos"
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a REALTOR® are a good 6-9 months away from buying. They are more interested in seeing what is out there than in actually making a purchase. Most will be in the education stages of home-buying. They may still have to sell their house, or may not be able to afford a house yet. They could even be unsure as to whether or not they want to move. Looking at homes is a great way to decide if the timing is right. You need a game-plan for determining whether a visitor is a buyer or a looker. A great question to ask is, "What is your time-line for making a purchase."
Again statistics show that 90% of all ready, willing and able buyers have a REALTOR®. You should strongly consider this FACT when determining a sales price and you should be prepared when you get the call from a REALTOR® that has a buyer interested in your home. Someone has to determine a prospective buyer's savings, credit rating, and purchasing power in general. If a REALTOR® is not involved you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. A good loan officer can be very valuable in these situations. We recommend Rob Morgan with 1st Community Bank. His phone number is 816-419-1997
Mistake #6 -- Not knowing your rights & responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money. Local laws are in place to protect buyers from sellers that fail to disclose material facts that effect a property. As a seller, you are responsible for proper disclosure. ANYTHING that effects the value or safety of the home MUST be disclosed… it’s the law!
Mistake #7 -- Limiting the marketing and advertising of your property
You should employ a wide variety of marketing techniques. If you are truly committed to FSBO you need to be aware that your home will not be available through the MLS and so it will not be exposed to the almost 10,000 local REALTORS® and the buyer clients that they have contracts with. You have to be committed to selling your property and be available to show your home on a moments notice to a prospective buyer. If you can’t be available on their schedule, they are going to keep looking and they just might buy the house a few blocks over before they ever see yours! Yard signs will only be seen by those that drive by your property, but you still need one. Newspaper advertising is bocoming less and less important on a daily basis. If you want to expose your home to the masses, get it on the internet in as many places as possible. If you are willing to pay a buyers agent, send them e-mails to let them know. Many of today's buyers agents simply hate calling FSBOs and asking about buyers commissions. Be proactive and reach out to them.
