The #1 Mistake FSBO Sellers Make (and How to Avoid It)
Imagine this: You decide to sell your home without an agent, thrilled at the prospect of saving thousands in commission fees. You list the property, expecting buyers to flood your inbox. But weeks pass. Then months. Crickets.
What went wrong?
You made the #1 FSBO mistake—pricing your home incorrectly. This one error can make or break your entire sale.
In fact, a staggering 70% of FSBO listings are overpriced, lingering unsold for months before sellers are forced to slash prices.
While many FSBO sellers focus on marketing, staging, or negotiation, pricing is where they stumble the most. Get it wrong, and your home will either sit unsold indefinitely or sell for a fraction of its value.
Let’s break down why pricing mistakes happen, the harsh consequences, and exactly how to price your home like a pro.
Why FSBO Sellers Misprice Their Homes
Most FSBO sellers aren’t pricing experts. They either guess their home’s value or rely on flawed strategies. Here’s how it happens:
1. The Emotional Pricing Trap
You’ve poured sweat, money, and memories into your home. Surely, that makes it worth more, right? Wrong. Buyers don’t pay for memories—they pay for market value. Overpricing due to sentimental attachment is one of the biggest FSBO pitfalls.
2. The Fear-Based Undervaluation
Some sellers, desperate for a quick sale, price their home too low. Instead of attracting eager buyers, they leave thousands of dollars on the table—money that should have been theirs.
3. The ‘Zillow Price’ Myth
It’s tempting to rely on Zillow or Redfin, but their automated estimates can be wildly inaccurate. In Phoenix, Arizona (2021), Zillow admitted their algorithm had overvalued homes, causing prices to crash and leaving FSBO sellers scrambling.
4. Failure to Analyze the Market
Pricing should be based on data, not guesswork. Without running comps, tracking local trends, and adjusting for market shifts, FSBO sellers risk pricing their home completely wrong.
The Costly Consequences of Mispricing
Pricing mistakes don’t just delay your sale—they can cost you big money. Here’s what happens when you get it wrong:
🚫 Overpricing = No Offers
Buyers today are savvy. If your home is overpriced, they’ll scroll right past it. An unsold home eventually becomes a stale listing, forcing drastic price cuts.
💰 Underpricing = Lost Profit
A home priced too low isn’t a deal—it’s a giveaway. Buyers will jump on it, but you’ll walk away with less than you should have.
⚠️ Appraisal Nightmares
Even if a buyer agrees to your price, their lender might not. If your home doesn’t appraise, the deal falls apart.
⏳ Stale Listing Syndrome
Homes that linger unsold raise red flags. Even if nothing is wrong, buyers start to wonder why it hasn’t sold, reducing interest and forcing price drops.
How to Price Your FSBO Home Correctly
Avoid pricing pitfalls with these expert-backed strategies:
✔ Use Comps, Not Guesswork – Research recently sold homes similar to yours (size, condition, location) in the last 3-6 months. These set the real market value.
✔ Get a Professional Opinion – Hire an appraiser or broker price opinion (BPO) to get an unbiased, data-driven estimate.
✔ Price for Demand, Not Just Profit – Don’t set an inflated price expecting to negotiate down. A competitive price attracts multiple offers, driving your final sale price up.
✔ Adapt to Market Feedback – If buyers are viewing your home but not making offers, adjust accordingly. Silence is a signal.
✔ Stay Agile – The market fluctuates. If trends shift, pivot your price to match buyer expectations.
Your FSBO Success Starts with the Right Price
A well-priced home sells faster, attracts better buyers, and maximizes profit. Don’t make the mistake that can cost you thousands.
🔥 Want a step-by-step guide to pricing and selling your FSBO home like a pro? Get instant access to the FSBO Power Play Course and start pricing smarter today!