Selling On Your Own

I wanted to devote at least one entry to that subject that no client ever asks me about, selling your house on your own.  This is commonly known as For Sale By Owner (FSBO) in the industry. And the reason no one ever asks me about this is because they believe they know my answer!

But the truth is always more complicated than is comfortable. It's heresy to say this in the real estate world, but I believe there are occasions where it can be perfectly sensible to sell your own home without the involvement of a licensed agent.  Furthermore, before I ever became a REALTOR or even thought about it, my husband and I sold our first home on our own. We had a ratified contract in less than 48 hours for more than asking price and, in fact, had a bidding war. So, I know it can be done!

Let me also say, that, generally, it's not for everyone. Most people who decide to sell their own homes do so without little or no knowledge or preparation. That's probably why statistics say that on average, FSBOs sell for 16% less than homes sold by a licensed agent.

One of the reasons our experience was good is because I chronically over-prepare! I bought just about every book there was about selling your own home and then did just about everything they recommended! We were also in a very hot sellers market in a very desirable neighborhood where there was no other inventory currently for sale. And we knew this going in because we did our homework. The odds were in our favor! Obviously, that's not always the case!

So, here are some questions to ask yourself if you're contemplating doing this on your own:

1. Are you willing to invest the time to research current market conditions so you can set the price properly?

2. Are you willing to educate yourself about the process and follow the advice of the experts?

3. Do you have a good real estate attorney to assist you with the settlement and perhaps help you review the contract?

4. Are you able to make your home available to potential buyers seven days a week, at least 10 hours/day?

5. Are you (and your spouse!) able to conduct negotiations in a calm, business-like manner and set aside your emotional attachment to your home?

6. Are you able to wait longer for your home to sell than one listed by a real estate agent?

7. Are you comfortable with a higher degree of legal risk?

8. Is the current market one where you will only need minimal market exposure in order to sell?

If all of the above are answered in the affirmative, it may be worth it to try the FSBO route! But don't tell any other agents I said that!!!