Why would FSBO fired their Agent

[Derek Parks]

Hi BP, I’m looking at a FSBO property that has potential and analyzing the deal now. The SFR property has been listed for +150 days and the seller is super motivated. I called and spoke to the owner for 10mins getting as much detail as I could. When I asked about why they didnt have an Agent anymore, they said “felt the agent was asking too high of price”. The price has gone down about %15 since initial listing but my radar suspects there is more to it. Anyone have insight into what one would let go of their agent and sell themselves?

[Christopher Phillips]

@Derek Parks

90% of why homes don't sell is related to price. The seller is basically telling you that they can't get their price and they are frustrated and decided to sell on their own...

Sellers sometimes just don't listen to their agents and insist on listing at a price that's too high for the market and the property's condition.

If a price is too high, buyers won't request to see the property.

If the price is slightly high, buyers will come but won't submit offers.

If the price is spot on, then the right buyers will submit offers.

If the price is at a slight discount, there will be multiple offers.

Also, and most importantly, the best offer usually comes in within the first 2-3 weeks. If the property is properly marketed and there aren't any offers within the first 2-3 weeks, then it's time to reevaluate the situation.

That being said, there are some markets that are slow due to geography or other local economic issues. The way to look at the market is to compare the property to the days on market. If the average days on market is around 180 days, then the property at +150 days is probably okay. If the days on market is around 50-60-90 days, then at +150 there is a big problem with the pricing or the seller is unreasonably holding out for a specific sales number that isn't coming.

How is the price of a home determined? By looking at comparable homes that recently sold in the area. Usually within 1/2 to 1 mile radius. Same or similar style. Similar numbers of bedrooms and bathrooms and amenities (garages, pools, lake view). Adjustments can then be made for slight variations like 3 bedroom vs 4 bedroom...

As a side note, there are some buyer search parameter considerations. People like to search in brackets close to their budget. So, a $480,000 home will be between $450,000 to $500,000. If the house is overpriced at $520,000, as an example, anyone with a max budget at $500,000 won't see it.