The Pitfalls of For Sale By Owner (FSBO)

Common Pitfalls Faced by For-Sale-By-Owners
• Seller cannot make themselves available for showings at convenient times to
buyers due to work, family, or other commitments

• Concerns over safety & security – allowing strangers in the house

• Newspaper ads alone don’t draw enough qualified buyers

• Seller over-prices home (fewer buyers, fewer offers)

• Seller under-prices home (lost potential profit)

• Seller does not have “feature sheet” or other home info for buyers to take

• Difficulty finding time to search for new home while marketing & showing
current property

• Buyers are unqualified

• Buyer backs out after signing agreements

• Offers come in low since buyers know you aren’t paying a commission

• Seller doesn’t have or is unfamiliar with required forms, disclosures, and

• Negotiation of an offer and/or a counter-offer with buyer, buyer’s agent or
buyer’s lawyer

• Buyer “drags their feet” in providing documentation or signing forms, or
provides incorrect/outdated information

• Buyer does not obtain insurance in a timely manner

• Appraisal comes back too low

• No comparable sales are available for appraisal

• Buyers require extensive contingencies on price, financing, and/or property

• Job change, illness, divorce or other major financial setback for buyer or seller

• Home inspection reveals something unexpected – i.e. termites, foundation
issues, radon, or other problems

• Conflict over change-of-possession date/time/conditions

• A disaster occurs (fire/flood/etc) during the process