For Sale By Owner... The risky side of selling your home alone

By Brian Ortiz, Chicago Real Estate

Chicago IL Real Estate

Typically most sellers list their homes with a Realtor, however some individuals choose to handle the selling of their home on their own. Selling a home under "For Sale By Owner", is absolutely possible, but there are some hurdles and risks involved. 

"For Sale by Owner" sellers are motivated to save the cost of the real estate agent's commission. In some cases, however, selling on your own can result in a lower closing price that crosses out those gains. In a recent survey of more than 7,800 buyers and sellers around the country, the 2005 National Association of Realtors® Profile of Home Buyers and Sellers demonstrated that the median price for homes sold by the owner without representation was 16% lower against homes sold with the assistance of a Realtor.

What are some other potential risks:

• Setting the wrong price.  An overpriced listing can remain on the market longer and will spark the need for price drops.  Underpricing your listing can result in a loss of potential revenue and in some cases could scare off buyers as they are wondering, "What's wrong with this house?".
• Underexposure and Lack of Marketing Experience.  To get buyers you need more than a sign in your yard and a classified ad.  Real Estate agents are equipped with many marketing tools that not everyone has access to.  The MLS listing system, an internet presence, and access to many buyers are some of these items.
• Failure to properly disclose.  Not properly or fully disclosing some items by the seller can create a huge liability.  This can result in lawsuits.  Licensed Real Estate Professionals are required to stay up on current disclosure requirements.
• Negotiating with emotion.  For sellers, having someone like a Realtor in the middle of the transaction helps to remove some of the emotion involved. 

These are just a few examples sellers should think of before selling their home alone. 

If you are a home seller and planning to sell your home on your own, please contact me.  I'd be happy to review some of these items in more specifics and I would appreciate the opportunity to tell you of more advanantages of working with a Realtor like me.

Thank you.

Brian Ortiz, Chicago Real Estate

Realtor

RE/MAX Vision II

Chicago, IL

http://www.brianortizproperties.com/