Inman: 7 Reasons Most FSBOs Crash and Burn...or 1 More Reason Realtors Are So Important

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According to Inman.com 89% of FSBOs crash and burn. Well, not literally.

FSBOs (homes For Sale By Owner) are a headache. To quote one of my favorite TV presenters (British for host), Jeremy Clarkson of the BBC's Top Gear, "how hard can it be?"

 The answer, it turns out, is very. Very hard, actually.

I'm a nerd about behavioral economics. #2 in the Inman article, "emotional attachment is a barrier" is explained by a concept called the endowment effect.

Business Insider explains that the endowment effect is caused by a link that we form between our possessions and our identity. The things we own are a reflection of us. A low-ball offer, it turns out, is actually experienced very much like personal insult.

All of us think we make rational decisions, but overvaluing our home because we feel like it's a part of our identity isn't exactly rational.

Check out the Inman article. It's a good read and a good reminder why Realtors are so important to the home buying/selling process.

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