FSBO Scam Websites
It is unfortunate that there are so many disingenuous FSBO websites that we even need make this page. If one were to type “fsbo” and a city or state, almost all of the websites which come up claiming to be FSBO websites are fake. Most of these phony FSBO sites lead somehow back to a realtor. This page is a warning for anyone interested in purchasing FSBO property in the area: there are many who dishonestly take advantage of the FSBO moniker for their own personal gain, at the expense of FSBO buyers and sellers everywhere. While the behavior of a few tends to reflect upon the whole group this is not fair as there are certainly many professional and competent agents out there. However, they are generally successful enough that they do not need to pose as something else in order to make a sale.
Another reason for making this issue known is that these sham FSBO sites reflect badly on all legitimate FSBO sites and the general idea of FSBO. Some are so poorly thought-out that any unlucky seller who lists with one is almost guaranteed to have trouble selling his or her house. We suspect that this is intentional as it helps to give FSBO a bad name and at the same time drives the would-be sellers to the real estate agents who are connected with the website.
There are several warning signs that suggest a FSBO listing service may not be genuine. Being aware of these signs enables FSBO buyers and sellers to judge a website for themselves. Of course, just because a website exhibits one or more of the warning signs doesn’t always mean it’s a scam. These are just guidelines which hold true far more often that not.
Asking for Contact Info for Buyers:
This is perhaps the biggest, and most obvious tip-off that a FSBO listing site is not genuine. If you are asked for an email address or phone number before being allowed to view the FSBO properties you are probably not viewing a legitimate FSBO website. The reason for wanting this info is two-fold: 1. to assemble a list of people who are in the market for a house so the website owners can then solicit buyers for whatever service they may be selling. 2. To discourage people from viewing the listings at all. This way, when the property doesn’t sell the homeowner (fsbo seller) may turn to the real estate agent who owns or operates the site, or who is linked to on the site.
All true FSBO listing services want to make it as easy as possible for anyone to view the listings, because we want our sellers to be successful. This is the raison d’etre for all true FSBO websites.
There is contact info for a realtor or agent or similar on the website:
True FSBO websites are serious about what they do and about the FSBO concept itself. Any website which claims to be FSBO yet deviates from this should be viewed with suspicion. We viewed one website which had some partners but had a partner real estate agency listed at the bottom! Conveniently, the website is registered to one of the agents involved in the partner real estate agency!
The focus of the website seems to be to sell other services:
Our primary goal at FSBOMetroDenver.com is to provide exposure for our sellers and a wide selection of FSBO homes for our buyers. We list our Partner Service Providers as an auxiliary service to help out our buyers and sellers. Some websites, though, are primarily focused on selling services. They make some or most of their money by selling other services to their customers. If you visit a site and feel as if you’re being bombarded with advertisements for other businesses, be cautious. Although this doesn’t necessarily mean that their FSBO service isn’t real, it suggests that their first priority isn’t selling their listed homes but rather other services.
A local site doesn’t offer real yard signs:
Local services providing their sellers with cheap, plastic signs or no sign at all may be cause for suspicion. (We stress “local” because many national services may provide cheap or no signs at all since as metal signs are costly to mail.) It has become common practice for FSBO listing services to offer industry-standard metal signs. While failure to provide a quality sign does not automatically mean that a website is phony, at the very least it suggests minimal investment in the site’s customers and the business as a whole. An attractive and well-designed sign will likely attract more potential buyers than a cheap, cardboard or plastic sign.
These warning signs individually or together may not necessarily mean a website is phony, but they are definitely red flags. Requiring personal information to view listings is the most reliable of these indicators, and fsbo sellers and buyers should be cautious when considering doing business with such a website. There are several legitimate national FSBO listing services, as well as a handful of legitimate local ones scattered across the nation. But, the vast majority of the hundreds of results any major search engine will return for FSBO-related keywords are not genuine and should be avoided. They are dishonest and are not deserving of your business.
