This article hit on a few important factors; First, the marketing-challenged seller is a HUGE factor in the low success rate of FSBOs. 

Another big factor is this quote: “Sellers tend to overprice because of an emotional attachment...” I see this every day, and the overpriced homes affect more than just that seller.  They hurt the neighborhood overall by slowing activity and placing a stigma on the home and the neighborhood.

Then there’s this: “If I could do it again, I’d price it below $750,000, but try to keep it above $700,000,” Miller said. “I should’ve priced more aggressively. I lost out on that opportunity.” The initial momentum gained at the beginning of the marketing is critical to a successful sale.  Overpricing scares off those buyers who are looking at fresh listings, which is the majority of them.  You may never see them again once you’ve scared them away with a high price.