3 Types of Buyers Looking at FSBO Properties
If you're trying to sell your property yourself, it's important to know who's looking for FSBO properties. There are typically three types of buyers looking for these types of properties. Here's a look at the three types of buyers seeking out FSBO properties.
Buyer Not Working with an Agent
The number one type of buyer looking for FSBO Properties is someone not working with an agent. They may choose not to work with an agent because they are looking for owner financing. Usually, if a buyer is pre-qualified for a mortgage or ready to pay cash, they will hire an agent to do the legwork.
Usually, buyers that don't qualify for normal or conventional financing will seek FSBO properties without an agent. Buyers don't pay the commission to an agent, so there usually has to be a special circumstance for a buyer not to work with an agent.
Buyers Further Out from Actually Buying
Another type of buyer that will seek out FSBO properties is the buyer not ready to make a commitment yet. They are looking for a really good deal if they are going to buy now, but they will likely buy in six to nine months.
Buyers Looking for a Discount
About half of the buyers seeking out FSBO properties are looking for a discount. As an FSBO seller, you may be selling to save on the commission you'd pay an agent. About half the buyers out there looking for your property are hoping you will pass that discount onto them.
These buyers are looking for a better deal and properties found below market value or right at market value. Since you won't be paying a 6% commission, buyers think they should be able to buy below market value to save money. Often, this leads to low-ball offers on your property.
As an FSBO seller, these are the three types of buyers you will likely come up against. Each is a bit unique and understanding the buyer may help you sell your property.