For sale by owners are targets for people looking for bargains.
While you may think you will be saving by not paying the commission, the buyer you are attracting has a different plan.
This buyer sees a “for sale by owner” as an excellent way to save on the price - since you’re not paying a commission.
If you doubt this, just ask any buyer who stops by to see your home without an agent why they are looking at for sale by owner homes rather than at listed properties. After all, from the buyer’s perspective, it’s far easier to work with the property listed by an agent, especially if the buyer is using an agent.
Consider for a moment the shopper who is out looking for your FSBO home.
Who are you more likely to attract as a for sale by owner? The people who look at for sale by owner homes are sometimes regular home shoppers. But more often than not, you are attracting buyers who are either serious bargain hunters or who are less capable of purchasing.
The serious bargain hunters may be investors or they simply may be people who believe that you are willing to turn over the commission you're not paying to an agent by lowering the price of the house for them. These folks expect that you are so desperate that you're willing to relinquish that profit in exchange for a quick sale.
Their thought process is that, since you're not paying a commission, it makes perfect sense for you to give those savings to them. They know what the average commission is in the area and that is exactly how much they expect you to lower your price BEFORE they begin to negotiate an even lower price. I can assure you with complete confidence this is the prevailing attitude among house hunters who are looking at for sale by owners on the market today in Charleston. Most FSBO shoppers are the bottom feeders which is not the spot where your return on investment needs to be.