For Sale By Owner.....doing it yourself!

Selling Your Own Home Without a Real Estate Agent.

This has received a lot of media coverage.  Want to know the truth?  Here it is, some people actually can sell their home themselves.  Now you want to know how many do?  The best statistic is 13% of all homes sold in the United States are sold without a Realtor. 

Now do you want to know "the rest of the story"? as a famous radio personality puts it.  That 13% includes sales made to relatives and friends so take that number out and the real number is about 8%. 

Here is a thought for you for you to consider.  How many of you have heard of the "Nothing Down" programs taught  today.  Guess what they teach you.  They teach the buyers how to write "WEASEL" clauses.  Now who do you think these "WEASEL" clauses are designed to protect?  Not You!  These clauses are design specifically to help the buyer "weasel" out of the contract. 

How good are you with legal issues?  What no one talks about is, your liability.  When you sell your home yourself you take on all the liability.  Say or do something wrong and you could end up in court.  I find that most of my clients appreciate the fact that I take the time to explain disclosure laws and I even give them forms if they want to sell their home themselves.

Here is another issue that concerns your selling profits.  Most "sell sellers", FSBO'S, sell for 15 to 20% less than they should or have too.  They get a buyer and want to sell so badly on their own that they discount their price to keep the buyer.  They saved the commission but sold for less than the commissioned agent would have sold the same property.  

Some sellers are very well suited to sell their own homes and do.  The majority don't and for good reason.  So before you go find someone to put your home on the MLS for a fee and try to sell on your own, ask a few questions.

1. How long is it going to take me to sell my home?
2. Can I establish my own sell price? Yes, will it be right? maybe.
3. Will I conduct my own open house? Yes, nobody else will.
4. Will I assume liability for everything? Yes 
5. Can I produce my own color laser printed brochure? Probably  Will it look professional? maybe
6. Will I be willing to take phone calls anytime?  probably not.  My toll free number works 24 hrs. a day.
7. Will I be staying home on Saturday and Sunday?  Most likely, that is when the most buyers are looking.
8. Can I produce my own magazine ad?  Yes, will it cover everything for the buyers to come? maybe
9. Can I "not" disclose that the roof leaks or basement wall is cracked or water heater needs replaced? No, just because you are not using an agent does not mean you can keep material facts from the buyer.  This is the fast track to court!  The agent, on the other hand, can not hide these issues either but they have been trained on how to handle objections and overcome flaws in homes.
10. Will I know all the information a title company needs to transfer the title of my home to the buyer?  Probably not, but with a few trips and phone calls you can get through it.
11. Will I be strong enough to say no when I am asked to do unrealistic repairs and still be able to keep the buyer? Maybe
12. If I fill out the contract wrong could it cost me? Yes, marking the wrong box or agreeing to one thing that is taken another way than meant could definitely cost you.  Could I bargain my mistake away? maybe
13. Could I be asked to contribute to the buyer's closing costs for them to purchase my home? Yes, especially if your buyer is trying to use the "nothing down" program taught at seminars.
14. If I receive a low bid how much to I counter-offer back?  It's your sale do what you want.  The key is keeping the sale together so you end up happy and the buyer ends up happy.  Can you do this?  Maybe
15. Can I handle the sale of personal items like my lawn mower or stove and refrigerator when asked if you too can be purchased with the property.  Agents know these items are personal items some can go with the sale of the home others have to be handled differently.
16. Will I need an attorney?  If you do not use an agent I would always suggest using an attorney.

Do you see what lurks behind every sale?  It is not that you can not sell yourself.  The question is why would you want to take the liability or responsibility for something that is a potential nightmare if you do not have the training and knowledge.  Hind sight is always 20/20.  We all want to save a few dollars when we can.  I just pick what works for me.  You have to pick what works for you.

I hope this helped you.  If you have any questions or comments, drop me an email.

I just went back to this article to see what was happening in 2007.  Today January 2012 more information is in the hands of sellers and options for selling home is more available.  The considerations is do you have the time and do you feel comfortable selling your own home?