... UNQUALIFIED lookie loos ...
Yep, that is one of the big problems. The way to manage it is:
- Hire a realtor
- If FSBO, put your own sign out front, with a tube ... in the tube you have a great flyer: home address, annual taxes, annual insurance, square footage, floor plan, estimate PITI at a few market interest rates / programs, and photos. Disclaimers on the numbers of course, and keep the tube filled, always.
We've done both. I held a real estate license once, because I was CFO for a developer ... my wife was a realtor for 8 years. Neither of us works in the real estate industry at this time.
These days, when we buy and sell real estate, we use a realtor. We interview them like job candidates, because we are hiring them. I agree with the advice above, generally ... you want a sharp, engaged, busy realtor ... but not a "rock star", that assigns your listing to their newest minion.
Years ago, we tried the FSBO route. If you feel qualified to handle the pricing, negotiation and all the legal details; if your home is located in a high-traffic area (not critical, but helps); if you can keep your emotions out of the deal; if the market is reasonably strong; and if you're willing to spend the significant time and trouble to manage the sale of one of your largest assets, then FSBO is fine. That last point is the killer for even experienced investors.
So we've come full circle. We've done FSBO's, hired realtors, and been realtors. Now as I look at it, I figure it's like most service jobs in our society ... can I fix a bicycle tire, make my own breakfast, change my own oil, launder my own shirts, sell my own home? Sure. But we use the services of others because (1) our time is valuable, and devoted elsewhere, (2) if chosen wisely, those others can do the job better and more quickly, at a reasonable price. We'd recommend you use a realtor.
Having said all of this,
if you're in a scorching hot real estate market where homes sell in a couple days (fading mostly, from what we see), then by all means ... put the sign out, and cash the check.
But that is not usually the case.
Regarding oldcrowcall's comments, we note the same ... those FSBO signs come down and agent signs go up because the agents pester the FSBO's, but also the FSBO's learn it ain't so easy.
Another point ... just wonder if anyone else has ever tried this. DW and I noted long ago that the psychological truth of real estate brokerage is that the agent is much more motivated by a quick sale than a high price. Even if they get a full 6%, another $10K in sale price is only $600 in the agent's pocket ... which could easily be eaten up in higher marketing expenses during the time necessary to generate that higher price. We've thought of creating a commission schedule that ramps up the agent's commission as they generate higher and higher sales prices ... e.g. the agent gets 20% of the sales price which is 105% over the anticipated sales price, etc. Obviously need to absolutely know your market, but could be interesting ... anyone tried such a method?
Last point. Be very cautious about the neighborhood "expert" ... they may be holding down values in your neighborhood. Very short story. "Bob" shows up at my father's funeral ... no kidding. Bob is a realtor in my Dad's patio home development, and a neighbor. Bob works that development, and appears to be the only realor working it ... "everyone" seems to use "Bob". Bob's price seems a bit low when we go to sell Dad's patio home, so we interview some other realtors. We choose another realtor, and end up selling Dad's home for something like 20% over what Bob suggested. Later, we have a discussion with the President of the homeowner's association, who tells us she has been trying to get folks to use other realtors, because Bob is pricing all of the units low, simply to generate quick sales. Worked great for Bob ...
If a realtor tells you most of their listings "sell in XX days or less, and for full price", consider that may be because they are intentionally priced too low ...
Sorry for the length, but we've got some strong convictions on this question, and paid a lot of "tuition" to this college.
Best of luck ... real estate is a good "friend" in the long run.