Wednesday, August 1, 2007

Observations of For Sale By Owner

Dangers of Working with a For Sale By Owner in the Orlando Florida area!!!!

I had a conversation with an owner of a For Sale By Owner recently that shocked me.

Like most FSBO homes, they are overpriced. Not a big surprise -- most For Sale By Owners are valuing their homes on emotion, what their neighbor's sold their Orlando home for two years ago or what they need to get out of the house.

First off, I have to say the property is special in every way, I fell absolutely in love. I want this Orlando home, it is my dream home. It is a lovely lakefront property with fruit trees and lovely garden in a highly desirable community nestled on a quiet street backing up on conservation land. This home has pluses and it has negatives. It is adorable, but the negatives will keep many from purchasing it at reasonable list price, so it is no wonder this For Sale By Owner home is still on the market.

I had great difficulty in achieving the value I assessed to the home by the For Sale By Owner for lack of compatible properties. I could not justify the price that they had it listed for, and I am in love with this Orlando FSBO home. This is the best house, on the best lot, with more upgrades than the average home in this community?

Anyone else see a potential problem?

Ok, I don't have rose colored glasses on. There are aspects of this Orlando home that detour most of today's Orlando Buyers! All the bedrooms are upstairs, small bedrooms, only a 1-car garage. Obviously these negatives are affecting the ability to sell this For Sale By Owner home.
After sharing what I thought the home was worth, and why I thought it should be priced at my number, the owner asked that I keep the information between us. They did not want anyone to know what I had come up with. They thanked me for my advice and tips for selling their Orlando home.

This made me stop and think. Why did they not want me to share my valuation? And who would I share this with? Perhaps I should take an advertisement out in the Orlando Newspapers sharing what I think all Orlando For Sale By Owner Homes are worth? What are they thinking? If I let the cat out of the bag they won't be able to sell? I just shook my head and went on my way...

I came up with a couple of thoughts on this particular For Sale By Owner and Buyers in the Orlando Area and the current state of the Real Estate Market in Orlando Florida:

  • The For Sale By Owner is stuck on how special the home is and not focused on the ultimate goal - the home SOLD!
  • These owners have gotten valuations from several other Realtors who are desperate for the listing (it is an amazing Open House location) so they have told them what they wanted to hear
  • Are sites like By Owner, Owners, FSBO, For Sale By Owner Advertising Services and For Sale By Owner helping these owners or taking money ad adding to the frustration to these vulnerable owners?
  • This home at this price has competition from larger homes, with more to offer than a special location and charm. Orlando Buyers want to purchase the best home for the least amount of money.
  • The FSBO believes everything I just told them, but would rather live in a fantasy world of what was not what is.
  • There are some incredible values, reasonably priced Orlando homes on the market. If you are waiting for the perfect time, this is the time to get off the bench and get into the game!

Moral of the Story for Realtors: Provide value to both Buyers and Sellers! If I, the experienced Orlando Realtor can figure this out, what is stopping another Realtor? Stop telling Sellers what they want to hear and get real with Sellers! Buyers and Sellers are using my services because of the value I bring to the table! If I suddenly have a buyer looking for this type of house, I am going to educate them fully as to what the value is.

Moral of the Story For Buyers: If you are shopping the For Sale By Owner market without an experienced Realtor you could overpay and not get the best home for you! Worse yet, you are purchasing on emotion and could be making a mistake unknowingly. An experienced Realtor can provide you with the information you need to make an informed decision.

Moral of the Story For Sale By Owners: If your home is listed FSBO it is important to know that you need an experienced Realtor to guide you through the process of selling your home. If one experienced Realtor came up with that valuation, others might come up with that analysis too! You can't hide the truth, it always comes out... So what is it? Do you really want to sell? Or are you having fun chasing the market down? Can you really afford to keep doing what you have been doing?

This information about Celebration Florida is provided by:

Colleen Kulikowski, Realtor
Orlando Avenue Top Team

Keller Williams at Celebration
(407) 288-0017

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