For Sale By Owners (FSBO) sales have become non-existent.

Has anyone seen a For Sale By Owner (FSBO) sell in the last few months? We sure would like to know because we have been tracking a number of them over the last 12 months with none of them selling as a FSBO. The last national survey showed less than 10% of FSBOs were successful in 2008. It appears that the figure is much lower today and particularly so in Metro-Milwaukee.

Even in the best of times, during the real estate bubble years of 2002-2005 the best the FSBOs could do were to sell at a rate of about 4 out 10. Since then that rate has gone to oblivion. The number one reason for such monumental failure is the fact that FSBOs provide no help whatsoever to the buyer. If a buyer is interested in buying a property the buyer would most likely have to get an attorney, usually pay a retainer fee of at least $500, take off work (as most attorneys are 8-5) then go through the whole process of negotiating by themselves. Should the Offer not get accepted the buyer is out the money and time. Any issues that arise after the acceptance additional costs are involved. On the other hand, when a buyer buys a property listed by an agent the costs and time constraints are not there.

With such an overwhelming supply of homes to choose from (3 times the inventory of homes that was a few years back) one can see why the buyers shy away from the hassle of buying FSBO. Unless a property is a compelling bargain (much less than Fair Market Value) buyers refuse to venture into a transaction with a For Sale By Owner. You can't blame them.

By the way, Homeowners Concept started and continues to be the missing link for sellers that want to save money yet elevate their chances of selling to same or better than listed with a 6% Realtor. In the last 25 years in business we have assisted thousands of ex For Sale By Owners accomplish the goal of selling their home without paying a hefty commission.