luxury home fsbo

5 Simple Reasons For Why You Should Never Sell a Luxury Home For Sale By Owner (FSBO)

Share on facebook
Share on twitter
Share on linkedin

If you’ve ever considered selling your luxury home for sale by owner (FSBO), the most likely reason for you wanting to do so is because you want to save your equity rather than pay out a professional fee to a luxury real estate agent.

I totally understand that. It makes sense when you initially think about it. But then when you really start to think about it.

It makes no sense.

Let’s talk about why you should never list your luxury home “For Sale by Owner”.

1. You’ll End Up Paying a Fee Anyway

It’s free for anyone to work with a buyer’s agent. Unless some sort of retainer fee (rare) or agreement for compensation is in place, no one is paying their real estate agent to help them buy property.

This means as the seller, no matter what you do, you are going to pay someone’s professional fee.

I’ve heard many FSBOs say “we’re offering a 1% commission to buyer’s agents” thinking that they’re being fair or something.

I will tell you now before you get laughed at later. (Not trying to be mean).

No buyer’s agent will ever recommend your home to their clients if you are offering a commission below the market’s average.

Not only is it sort of insulting to us as real estate professionals, but it’s also just a recipe for you to never sell your home.

If you do happen to get lucky and sell it. You’re probably selling far lower than you’re initial listing price; thus, odds are that you would have made more money with a listing agent after it’s all set and done.

2. Real Estate Agents Study Markets for a Living

I’ve talked in articles before about how difficult it can be to get the price right on a luxury home. For a FSBO, it’s the hardest thing for them to do!

Fun fact: Zillow’s Zestimate is often inaccurate.

Luxury real estate agents have a wealth of tools and information at their disposal to get accurate, real-time market data and price estimates.

We also understand the process it takes to use those tools and data effectively so that we price your home correctly.

It’s also in our best interest to make sure you’re home is priced correctly. If it isn’t, we don’t get paid.

3. FSBOs Have Improper or No Marketing at All

If you’ve read almost any of my other articles, you’d see how much emphasis I place on marketing luxury real estate.

It’s the “selling” part of a sale.

One of the most common issues with FSBOs and why most of them fail is because they simply aren’t marketing the home.

If they are, they’re usually doing an absolutely terrible job.

No, putting an overpriced million dollar home on Zillow will not make it sell simply because there’s a view.

Generally, FSBO homes have terrible photos too, which I’ve emphasized before as one of the most important aspects of selling a luxury home.

It gets worse.

Only 1% of FSBOs use video marketing. 1%.

Luxury real estate sales require video marketing of some form. If you plan on selling your luxury home by yourself. You ought to be filming something.

One of the best things you can do is put on your nicest clothes and have someone film you walking through your home. Give the audience a tour. Act like a real estate agent.

If you can’t do that or don’t do well in front of cameras then I’d at least use a video to tour the home.

If you want to get even more crafty. Make a Facebook page for your home and run ads with your video. You don’t need a large budget to start getting views. Here are some numbers from ad tests I’ve run on low budgets in just two days.

facebook ads

Whatever you do, don’t be like the 49% of FSBO’s that said they didn’t market their home at all.

4. Poor Negotiating Position

Real estate negotiations get tough sometimes. Experienced agents have gone through the mill before and know how to wheel and deal.

As a FSBO, generally speaking, it’s your first time selling on your own. Therefore, you don’t have experience.

On top of that, you probably don’t know all the important forms required for the transaction or what they mean.

Any good buyer’s agent on the other side of the table will see this and prey upon you. This doesn’t make them bad; it makes them smart.

luxury real estate agent FSBO

You may wind up giving away your entire position during negotiations and suddenly end up at the mercy of the buyer.

You could get sucked into extravagantly long due diligence periods, too many repair agreements, price reductions, trading of personal property, etc.

Being on the side of the negotiating table without a good luxury real estate agent can hurt you more than you think.

5. A Ridiculous Amount of Phone Calls

Most people are busy. Most of my clients are busy. I’m usually busy.

Dealing with a bombardment of phone calls from real estate agents every day, asking you if they can view the home or better yet, list it for you, gets annoying by the third phone call on the first day.

No longer can you browse your phone in peace, have a clear voicemail inbox so you can get the messages that matter, and you know, live your life without disruption.

The problem is that you need to answer those phone calls too. One of them may be the person who wants to buy your house. If you miss it, then you lose what might be your only opportunity to sell.

A Little Story About My First Experience

On the very first day of being a real estate agent, I walked into script practice at my Keller Williams office. I was prepared and excited to sell.

I knew that I’d probably call a bunch of FSBOs that day because I didn’t know who else to get business from and most of the Keller Williams agents recommended that new agents get started with FSBO phone calls.

After scripts, I went outside to my car (at this point in time I did not have my own office space) and looked up FSBOs on Zillow.

I found a nice $350,000 seller who had been on the market for about three weeks, figuring if they hadn’t listed after three weeks then they probably weren’t getting called by other agents that much anymore.

I dialed his number and got this…

“Hello?”

“Hi, this is Matthew with Keller Williams how are you to…”

“Oh my God! I swear if I get one more f****** phone call from a f****** Realtor! You are number seven and it’s not even 9 AM yet! No! I’m not listing my home!” *click*

That was my very first real estate phone call.

I took a stroll around Downtown Asheville, pondering my mistakes in life and wondering if real estate was going to be my next one.

I somehow mustered up the courage to make one more phone call to a FSBO that had just listed their home on Zillow that morning.

She was very friendly considering she hadn’t been blown up yet. I scheduled a time to come see the house later that day.

I hung up knowing that I would never be excited to make a call to a FSBO again, but was grateful to know that not all of them will yell at you.

By the way, I did not get the opportunity to list their house, but they did end up listing it with an agent.

Final Thoughts

Selling a luxury home by owner is way too much of a hassle for something that might not even save you money.

But, if you’re considering going down the path of selling a home on your own and I haven’t been able to convince you otherwise. Good luck.

If you succumb to the need for a luxury real estate agent, I’d be happy to help.

Matthew Myre

Matthew Myre

Matthew is a North Carolina real estate agent and the CEO of Berri Properties. Matthew brought his passion for writing to his career by creating the Berri Properties Blog, which now ranks as one of the Top 50 Best Real Estate Blogs in the world. His favorite things are basketball, history, politics, and popcorn. Feel free to contact him at matthew@berriluxuryproperties.com

Matthew Myre

Matthew is a North Carolina real estate agent and the CEO of Berri Properties. Matthew brought his passion for writing to his career by creating the Berri Properties Blog, which now ranks as one of the Top 50 Best Real Estate Blogs in the world. His favorite things are basketball, history, politics, and popcorn. Feel free to contact him at matthew@berriluxuryproperties.com
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on reddit
Share on email
Share on print

66 Responses

  1. I really like your blog.. very nice colors & theme.
    Did you make this website yourself or did you hire someone to do it
    for you? Plz respond as I’m looking to create my
    own blog and would like to find out where u got this from.

    many thanks

  2. Hi! I’ve been reading your web site for a while now and finally got the
    bravery to go ahead and give you a shout out from Atascocita Tx!
    Just wanted to mention keep up the great work!

  3. This design is wicked! You certainly know how
    to keep a reader amused. Between your wit and your videos, I was almost moved to start my
    own blog (well, almost…HaHa!) Fantastic job. I really enjoyed what you had to say,
    and more than that, how you presented it. Too cool!

  4. Amazing blog! Do you have any hints for aspiring writers?

    I’m hoping to start my own website soon but I’m a little lost on everything.

    Would you recommend starting with a free platform like
    Wordpress or go for a paid option? There are so many
    options out there that I’m totally confused .. Any tips?
    Appreciate it!

  5. Howdy! This blog post couldn’t be written much better! Looking at this post reminds
    me of my previous roommate! He constantly kept preaching about this.
    I most certainly will send this article to him.
    Pretty sure he will have a good read. Thank you for sharing!

  6. It is the best time to make some plans for the future and it is time to be happy.
    I’ve read this post and if I could I wish to suggest you few
    interesting things or advice. Maybe you could write next articles referring to
    this article. I desire to read more things about it!

  7. Usually I don’t read article on blogs, but I
    would like to say that this write-up very forced me to check out and do it!
    Your writing taste has been amazed me. Thank you, very great
    article.

  8. I simply want to tell you that I am just very new to blogs and actually savored your web-site. More than likely I’m planning to bookmark your blog post . You amazingly come with awesome articles and reviews. With thanks for revealing your website.

  9. When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several emails with the same comment. Is there any way you can remove me from that service? Appreciate it!

  10. It is the best time to make some plans for the future and it is time to be happy. I have read this post and if I could I wish to suggest you few interesting things or advice. Perhaps you can write next articles referring to this article. I want to read even more things about it!

  11. hello!,I like your writing very much! share we communicate extra approximately your post on AOL? I need a specialist on this area to solve my problem. Maybe that’s you! Having a look ahead to see you.

  12. Unquestionably imagine that that you said. Your favorite reason appeared to be on the internet the easiest thing to take note of. I say to you, I certainly get irked whilst folks think about worries that they plainly don’t realize about. You managed to hit the nail upon the top and also outlined out the whole thing with no need side effect , other folks could take a signal. Will likely be back to get more. Thanks

  13. you’re in reality a good webmaster. The web site loading velocity is amazing. It sort of feels that you’re doing any unique trick. Furthermore, The contents are masterpiece. you’ve performed a magnificent task in this matter!

  14. I like the valuable info you provide in your articles. I will bookmark your weblog and check again here frequently. I’m quite certain I will learn plenty of new stuff right here! Good luck for the next!

  15. We are a group of volunteers and opening a new scheme in our community. Your site offered us with valuable information to work on. You have done a formidable job and our whole community will be thankful to you.

  16. Heya i am for the first time here. I found this board and I find It really helpful & it helped me out much. I hope to offer something back and help others such as you helped me.

  17. Hello there! This post could not be written much better!
    Looking at this post reminds me of my previous roommate!
    He constantly kept preaching about this. I’ll forward this information to him.
    Pretty sure he’s going to have a good read. I appreciate
    you for sharing!

  18. An impressive share! I have just forwarded this onto a friend who was conducting a little homework on this. And he in fact ordered me breakfast due to the fact that I found it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanks for spending the time to talk about this topic here on your website.

  19. I’ve been browsing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the net will be much more useful than ever before.

  20. Magnificent items from you, man. I’ve bear in mind your stuff prior
    to and you’re just extremely magnificent. I really like what you have acquired right here, really like what you’re stating and the best way wherein you assert
    it. You make it enjoyable and you still care for to
    stay it sensible. I can not wait to read much more from you.
    That is really a great website.

  21. I don’t even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you are going to a famous blogger if you are not already 😉 Cheers!

  22. But wanna input on few general things, The website layout is perfect, the articles is very fantastic. “Some for renown, on scraps of learning dote, And think they grow immortal as they quote.” by Edward Young.

  23. I am often to blogging and i also truly appreciate your content. Your content has really peaks my interest. Let me bookmark your web site and maintain checking for brand spanking new information.

  24. With havin so much content do you ever run into any issues of plagorism or copyright violation?
    My website has a lot of completely unique content I’ve either authored myself or outsourced but it seems a lot of it
    is popping it up all over the internet without my permission. Do you know any techniques to
    help prevent content from being stolen? I’d truly appreciate it.

  25. I do like the manner in which you have presented this situation plus it does present me personally some fodder for thought. However, coming from just what I have personally seen, I simply trust as the actual reviews pack on that individuals remain on point and in no way get started upon a soap box regarding some other news du jour. Anyway, thank you for this superb piece and though I can not necessarily go along with the idea in totality, I respect your perspective.

  26. Attractive section of content. I just stumbled upon your blog and in accession capital to assert that I acquire actually enjoyed account your blog posts. Anyway I’ll be subscribing to your feeds and even I achievement you access consistently fast.

  27. Throughout this awesome design of things you’ll receive an A+ with regard to effort and hard work. Exactly where you actually confused me personally ended up being in your details. As they say, the devil is in the details… And it couldn’t be more true here. Having said that, allow me say to you just what exactly did deliver the results. Your text is certainly quite persuasive and this is possibly the reason why I am making the effort in order to comment. I do not make it a regular habit of doing that. 2nd, even though I can notice the jumps in reason you make, I am definitely not convinced of just how you seem to connect your ideas which in turn help to make the conclusion. For the moment I will, no doubt subscribe to your issue but trust in the near future you link the dots better.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to the blog for the latest real estate tips, tricks, and more.

Related Posts

© 2020, BERRI LLC. All rights reserved.

realtor and equal housing opportunity

Best For buyers, sellers, investors, agents, and marketers.

Subscribe to Our blog for the latest tricks and tips in real estate