Between 10 and 15% of all home sales this year will be For Sale By Owner, without the aid of a Realtor. Of that percentage, it is estimated that 40% of all FSBOs will sell to someone they already know, meaning that they are effectively private transactions, and are not really a part of the open marketplace. That means that only 6 to 9% of the homes on the market at any given time are FSBOs, and not all of those are going to sell.

Why such lousy numbers? What is keeping FSBOs from achieving a greater percentage of the market? The simplest answer is a lack of knowledge. Most private sellers simply do not know the appropriate laws, necessary paperwork, local real estate customs or the most effective marketing skills.

While I continue to believe that a seller is almost always better off hiring a competent Realtor (I even have the numbers to prove it, a good Realtor will more then pay for themselves!), there are some fairly simple steps a seller can take to greatly improve their odds of selling, and saving the listing commission charged by Realtors. What follows is a short list of the seven most cost effective methods of producing potential buyers for any home seller, whether or not they are FSBO. In fact, if you have hired a Realtor, and they are not utilizing these tools, I would seriously think about changing Realtors! (more…)