In the United States, less than 10% of all For Sale by Owners are successful in selling their home by themselves. Most people trying it on their own just give up because they fail to realize the difficulties and complexities of selling a home. Some For Sale by Owners think that all they have to do is stick a sign in the yard and run a couple ads and magically a buyer will appear. They fail to realize that pricing, staging the home, open houses, fielding calls from unqualified buyers, dealing with "lookie loos," knowing what to say, knowing how to act, showing the home and low-ball offers are all part of the sales process. Then, if you are lucky enough to get a buyer, the three biggest pieces of the puzzle are left, the contract, the negotiations and the closing. This is where you make or break a deal. For Sale by Owners can actually end up costing themselves thousands of dollars than if they would have just listed with a Realtor in the beginning.

Here are more reasons "Why Most FSBOs Don't Sell."

Is it a Mansion or a Shed?
No MLS Exposure
Hot Housing Market
Lack of Cooperation from Buyers
Lack of Cooperation from Realtors
Price, Condition and Location
Opportunity Lost

Is it a Mansion or a Shed? Time and time again, the FSBO overprices their home. The FSBO may not be aware of market trends or statistics to support a specific price. Also, one must take into consideration the surroundings of the property for sale. Are there power lines running through the backyard, does the property back to a road, can you hear a train, is the wall paper or wall color you loved 10 years ago really what a buyer today is looking for? These are a few of the many conditions that impact the sale of a home and the price a seller may actually get for the property. Sometimes the seller's objectivity disappears when dealing in emotions.

No MLS Exposure. The Multiple Listing Service (MLS) is a system in which Realtors share information on homes for sale. This information is shared with hundreds, if not thousands, of websites through Broker Reciprocity. This exposes your home to literally, the world. Anyone relocating to the area would have access to information before they visit the city in which they are moving to. There is absolutely no replacement for this method of advertising. Statistics show that more than 77% of all home buyers use the internet in their home purchase.

Hot Housing Market. In a hot housing market, or sellers market, the success rate for FSBOs is higher. There are fewer homes on the market than buyers. When the market slows, however, and becomes a buyers market, things get tougher for the FSBO. More marketing effort may be needed than the typical FSBO can obtain. The need for MLS exposure may become inevitable.

Lack of Cooperation from Buyers. Some buyers don't like dealing with FSBOs because they have had a bad experience in the past. Some equate this type of buying to buying a car. Some FSBOs cannot remove the emotion from selling their own home and it shows. In the end, most would-be buyers expect to be represented by a Realtor. This immediately puts buyers and sellers at odds because the FSBO is saying "we don't need a Realtor involved in the transaction."

Lack of Cooperation from Realtors. Some FSBOs advertise that they will pay a 3% co-op if a Realtor brings a buyer to their home. So, why wouldn't a Realtor show their clients a FSBO home? First, the Realtor may not even know that there is a FSBO in the neighborhood his client is looking in. Second, most Realtors do not like to deal with emotional sellers. This is a fact. Realtors would rather show a house listed through the MLS because they know they do not have to haggle with the sellers to get paid. Also, some feel that the FSBO will try to "under mind" the efforts of the agent thus jeopardizing his relationship with his/her clients.

Price, Condition and Location. You can change two of the three variables. Failing to adjust the price or change the condition to meet current market trends can be a major stumbling block for some FSBOs. This is more than missing the pricing in the beginning. You must know if prices in your neighborhood are increasing or decreasing over the time you are marketing your home. Also, are most of the homes in your subdivision remodeled? If so, you probably need to keep up with the trend or adjust your price accordingly.

Opportunity Lost. Some FSBOs miss out on the "hottest" part of the market by holding out too long in hopes of landing a buyer at the best, and sometimes much too high, price. Historically, the holidays are the worst time to sell a home because buyers are not thinking about moving.