1. Owners could be asking for more than the property is worth. One sure disadvantage is the possibility that the owner is expecting more for the property than anyone would pay for it. Whether by seller ignorance, undue love for the property or other financial problems, they may be trying to get more than fair market value.

2. Owners may not be sufficiently motivated. Many FSBOs will not be under pressure to sell below market value. Some just place an ad in the paper or stick a sign in their front yard to see what they could get if they were to sell. These time-wasters are just part of doing business with FSBOs. If buyers let them, they will burn more time than there is daylight. The lonely ones are the worst time robbers. They usually want the buyer to come in and take a full guided tour before they answer any questions that will be of real value. Buyers need to pre-qualify them as quickly as possible by asking questions that will reveal if they are sufficiently motivated to sell at or below market value. It is importatant for buyers to determine the seller’s motivation before walking into the home.

3. Buyers will see some real “junkers.”  When dealing with highly motivated FSBOs, nuyers will no doubt be looking at a few dumps. What do they do with a termite riddled house that is nearly falling down or has a sagging roofline?  The only way to make cash on a deal like that is by getting it extremely cheap, as long as the house is worth redeveloping. If bought right, there should be enough profit to justify the effort, work and time.