Why St. Cloud FSBO Sellers Remain in the Minority

Dated: January 23 2023

Views: 67

It may sound like “fizz,” but the experience for most St. Cloud FSBO (pronounced “FIZZ-bow”) home sellers is seldom a champagne kind of experience. The idea may be to sell their home as economically as possible, but local owners who plant a “For Sale By Owner” sign on the front lawn usually learn that the bottom line results are more costly than planned. At least that’s what most U.S. home sellers eventually come to agree. Some of the reasons:

·         Marketing. Unless the owner is an experienced real estate marketer, the vast majority of do-it-yourselfers have to do without the trust buyers place in their competition: the online listings vetted by licensed real estate pros.

·         Invisibility. That lack of trust is only an issue if buyers can find them at all, since, as the NAR® puts it, “few online marketing companies allow FSBO property to be listed.”  

·         Legal. Most FSBO sellers lack the technical experience to accurately describe all their property’s specific details, each of which is a claim. The homeowner can be held accountable by law for every one. Ignorance is no excuse, so even mistakes that were honestly made create potentially expensive liabilities.

·         Net. The typical bottom line is significantly lower for FSBO sellers than for those choosing the professional option. The most recent data shows the median FSBO sale was for $225,000 compared with $345,000 for agent-assisted sales.  

·         The Vibe. To most people, a For Sale by Owner sign implies an owner who is a bit of a penny-pincher. It’s not unfair to compare the vibe that carries with what you expect from a second-hand store—well-worn merchandise, priced appropriately.

That last could be the most striking reason to avoid the FSBO path, especially for owners who don’t expect to sell to a friend or relative at a price reflecting the close relationship. A full 90% of successful sellers used licensed agents to shepherd their sales, while the majority of the one-in-ten owner-sold transactions were those where the seller knew the buyer.

In the end, for sellers who started out as FSBO experimenters only to later switch to the professional choice, the FSBO ‘fizz’ ultimately fizzled out. A call to me avoids that experience!  

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Multiple Office Locations To Serve YOU!

Saint Cloud 320-259-4554

Princeton 320-983-3555

Sartell 320-259-4554

Little Falls 320-259-4554

Minneapolis 763-565-2000

Hutchinson 320-455-9127

Litchfield 320-298-1140

 

Premier Real Estate specializes in MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center, Brainerd, Nisswa, Aitkin, Albany, Coon Rapids, Sauk Rapids and more!

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Noel Johnson

Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Years of purchasing, developing, and managing several rental properties, while assisting friends & cli....

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