In the United States, less than 10% of all For Sale by Owners 
(FSBOs), are successful in selling their home by themselves. 
That's because most people just give up because they don't 
realize from the beginning the difficulty and complexity of the 
job ahead. But that's not the only reason. Here are the seven 
most common mistakes FSBOs make when selling their home.


1. Failure to price a property at what market conditions will 
   bear.

The number one reason that most FSBOs don't sell their homes 
is that they price it too high. Many start counting the money 
they're saving on commissions and how much their sale will net. 
If your house is priced higher than other comparable houses in 
your market, you will not get the offers you need to sell! 


2. Underestimating the time, energy, know how, ability and 
   effort needed to sell a house. 

One of the keys to selling your home effectively and profitably 
is complete accessibility. Many homes sit on the market much 
longer than necessary because the owner isn't available to show 
the property. Realize that a certain amount of time each day is 
necessary to sell your home. 


3. Not being prepared to deal with an onslaught of buyers who 
   perceive FSBOs as targets for "low balling". 

Another challenge of selling a home is screening unqualified 
prospects and dealing with low-ballers. It often goes unnoticed 
that much time, effort and expertise is required to spot these 
people quickly. Settling for a low-ball bid is usually worse 
than paying any type of professional fee or commission.


4. Lack of knowledge about financing options for the buyer. 

Are you prepared to answer questions about financing? One of 
the keys to selling is having all the necessary information the 
prospective buyer needs and to offer the buyer options. Think 
about the last time you purchased something of value, did you 
make a decision before you had all your ducks in a row? By 
offering financing options, you give the homebuyer the ability 
to work on their terms. You'll open up the possibility of 
selling your home quicker and more profitably. It's critical 
that you locate and establish relationships with a network of 
financing experts that will help you accomplish your goal 
profitably.


5. Not fully understanding the legal ramifications and all the 
   necessary steps required in selling a home. 

Many home sales have been lost due to incomplete paperwork, lack 
of inspections or not meeting your state's disclosure laws. Are 
you completely informed of all the steps necessary to sell real 
estate? If not, you may want to consider consulting with a legal 
or real estate professional.


6. Lack of experience in handling the legal contracts, 
   agreements and any disputes with buyers before or after 
   the offer is presented.

Are you well versed in legalese? Are you prepared to handle 
disputes with buyers? It is always wise to put all negotiations 
and agreements in writing. Many home sales have been lost due 
to misinterpretation of what was negotiated.


7. Not contacting the necessary professionals... title, 
   inspector (home and pest), attorney, and escrow company.

Are you familiar with top inspectors and escrow companies? Don't 
randomly select inspectors, attorneys, and title reps. Like any 
profession, there are inadequate individuals who will slow, 
delay and possibly even cost you the transaction. Be careful!

Selling a home requires an intimate understanding of the real 
estate market. If the property is priced too high, it will sit 
and develop a reputation for being a problem property. If the 
property is priced too low, you will cost yourself money. Some 
FSBOs discovered that they lost money as a result of poor 
pricing decisions. In the final outcome, these mistakes far 
outweighed the commission they would have paid.