The For Sale By Owner market is in a unique stage at the moment. Let's face it, homes aren't selling. Many of these homes are candidates for FHA refinances or for real estate agents to list at realistic prices. That's my two cents for the day on the for sale by owner real estate market.
The psychology of for sale by owner is changing day by day. There is a sense of desparation out there in the for sale by owner market.
Slowly, ever so slowly, the lower priced homes are selling and then there becomes a new plateau for the appraised values in teh neighborhood. What does the for sale by owner do next? They lower their price to match the lower sales in the neighborhood.
The problem is that by the time the for sale by owner has lowered the price, the homes that are for sale in the neighborhood that have sold are at an even lower plateau. This in turn makes a new lower sales price for the for sale by owner to chase down.
As you can imagine, this can continue for quite some time. This is the dynamic that is going on in teh for sale by owner market in this market. The conclcusion is to work with a real estate agent to price the home correctly from the get go. The problem of course, is that the for sale by owner doesn't wnat to hear that.
For Sale By Owner Marketing For Loan Officers.