Real Estate Yard Signs

Why is using a "For-Sale-By-Owner" type sign is a mistake?

1) "For-Sale-By-Owner" signs attract these kinds of wrong people to the sellers:

Buyers who have no money and bad credit, and are looking for a seller who will owner finance or do a rent to own (lease option). Real estate agents who wants to list your home and calling all the For-Sale-By-Owner signs. Bottom fishing investors and wannabe-millionaires who are taught that if they call enough For-Sale-By-Owner signs, they will find a seller dumb enough to sign over his house for no money down.
 

2) Most buyer agents skip the showing when they see a "For-Sale-By-Owner" yard sign. They assume that either the home is not in MLS, or they are afraid the buyer will cut them out and deal direct with the seller. Either way, agents lose their commission. This explains why agents never show up after appointment was made with the seller.

3) Buyers who are ready to buy right now almost always use a realtor.  They think that the seller is paying the commission anyway, and they will find the right house quicker with a Realtor with more homes to select. Looking at "For-Sale-By-Owner" houses one by one is very time-consuming.

4) Buyers who contact "For-Sale-By-Owner" houses experience these statistics: Half of them are significantly over-priced. Some of them are either eccentric or nuts. After having bad experiences, most qualified buyers think For-Sale-By-Owner houses as a waste of time.  They go to a realtor instead.