Thinking of Selling Your Home Yourself?

So you're thinking of selling your home yourself?

For most people, the prospect of coping with a For Sale By Owner is daunting - not only because they don't know who they're letting into their home, whether or not they're qualified to buy it, and because they don't have enough time - or ways to expose their property - to market it properly. But the upside, of course, is the ability to save the Realtor's fees.

But.... the two real obstacles are the ability and knowledge to price the property correctly, and a knowledge of local real estate laws and regulations and how to keep from being exposed to a future lawsuit.

Pricing, of course, is the big bugaboo (definitely not a real estate term) when facing the market. In my own listing presentation to potential clients, the section on pricing takes up a whole chapter, it's that important. As a Realtor, I have access to our Multiple Listing System and the record of recent sales to actually compare the potential client's home to what has sold recently which has the same living area, age, amenities, location, etc. And if data is sparse, my relationship with licensed appraisers is such that I can call them for guidance, and get it - something most For-Sale-By-Owner sellers don't usually have.

Interestingly enough, the co-founder of ForSaleByOwner.com recently sold his New York condominium - through a Realtor. Colby Sombrotto saw his $2 million condo languishing on the market for months, so did the only logical thing - he called a Realtor to list the apartment. The sale closed this summer (2011) and brought in $150,000 more than Mr. Sombrotto had his condo listed for when trying to sell it himself! Even after paying the 6% commission to the listing agency, Mr. Sombrotto walked away with more money than he would have if he had sold it himself - AND it actually sold and was off his hands.

One of the principal reasons Mr. Sombrotto's condo hadn't sold was that it was mispriced. By bumping it up to where it should be, the right people saw it, and instead of it being the highest price unit in its price range, it became one of the lowest, and the right people saw it - people who were actually looking for that type and price of apartment.

There's a good reason only 9% of the real estate market is sold by the owners, themselves: people understand the value of having someone knowledgeable about the market and the laws pertaining to it.

By the way, at the higher price the condo received multiple offers. Just so you know...