FSBO Help: Be Careful Who You Listen To

Before putting a home on the market, most sellers consult with people they trust to help them price their home.  What some people don’t consider is that their trusted advisors may have outside motives that influence their advice.  Sometimes advisors appear knowledgeable and confident when offering a FSBO help, but in reality, lack the qualifications to really make them an unbiased expert.

Let’s review some common scenarios:

Neighbors Know Things – They often know asking prices, but rarely are privy to the actual sale price unless they are an agent involved in the transaction, if so, that information is confidential until closing in some states, confidential for good in others.  Neighbors can be a great source of information, but it should always be verified before using it.
Motive to consider: Your selling price affects their home’s value, and everyone wants to appear knowledgeable.

Everyone Knows An Agent - A gentleman called our office that had four agents give him a free market analysis.  The values they came back with were all over the map ranging from $350,000 to $450,000.  Some agents are good at pricing homes, some aren’t.  The trouble is, there is no way for the general public to see the list price versus the sale price ratio for an agent’s listing history and see for themselves who’s good and who’s not.  It’s locked up in the private MLS database.  Also note that agents have different pricing strategies based on their marketing style.  Some will undervalue a home for a quick sale to keep their average market time numbers low.  Others overvalue when competing with other agents to earn a listing.
Motive to consider: A Commi$$ion is a big motive!  Also know that commissioned sales in general is very competitive, and real estate is no different.  When an agent sees a home go up for sale, especially a neighbor or friend, and they didn’t get the listing, it pokes at their competitive ego.

Self Proclaimed Experts: I have a fabulous carpet cleaner.  I gave his name to one of my clients, who proceeded to ask his opinion on the price of her (seriously overpriced) home.  After all, he saw a lot of homes and worked for several real estate agents, “he should know,” she figured.   He told her that it was priced just fine, and his word was golden.  No one could convince her otherwise after that.  Seriously!!!  The carpet guy!!!
Motive to Consider: This is a two part train wreck.  First she stroked his ego and he confidently gave her his opinion.  Second, she was only open to people that told her what she wanted to hear.  The truth supported by fact is irrelevant.  It’s a common disease that affects home sellers and teenagers.  Sadly, this rarely resolves itself quickly.

When you decide to sell your own home, you’ll find there are plenty of people that will offer to give a FSBO help, just run it through the ‘motive’ filter.  What’s in it for them?  Do they benefit any differently if you follow their advice, or not?  Are they qualified in the topic they are advising you on, and can you check their track record?

How do you evaluate your potential advisors?  Add your experience in the comments section on our website.