A lot of homeowners believe they should sell their own home to save the money they would normally spend on broker commissions.  On the surface it looks easy to sell a home.  Why should they pay a realtor for something they are capable of doing themselves?  Actually, close to 25% of all homes sold are by For Sale By Owners (FSBO).

Out of that 25%, close to half of the FSBOs said next time they would use a professional realtor next time they sold.  Another 30% said they were extremely displeased with the outcome by choosing FSBO.  Let's find out why.

A lot of the FSBOs said the responsibilities, legalities, time and paperwork weren't worth the money they saved by going it alone.  Some said the savings they received weren't what they originally expected.  After paying fees to inspectors, appraisers, title insurance, escrow and loan officers, marketing and advertising, they would have been better off to have just paid a broker's fee that would care of many of these charges.

Understanding the real estate market is necessary when selling a home.  A property will sit and create a stigma that something is wrong with it when priced too high and when priced to low you will cost yourself some major cash!  Many FSBOs found that they saved money had they made better marketing decisions.  Overall, the cost of going it alone outweighed the commission they would have paid to a realtor.

Some Questions To Ask Yourself

How much time, energy, knowledge and ability do I have to commit to a legitimate effort to sell my home?

Your home should be completely accessible to sell it effectively and for the most money.  Many FSBOs will sit too long on the market because the owner doesn't have time to show it effectively.  You should set a certain amount of time each day to show your home effectively.

Can I handle the onslaught of vultures that see a FSBO and target them with low ball offers?

Filtering through qualified prospects and dealing with low ball offers is another thing that will chew up your time.  A professional can spot and weed these out immediately.  Selling your home below market value will likely cost you more than paying a broker commission.

Can I offer financing options to the buyer and can I answer financing questions?

Many times a buyer will need information on financing and if you're unprepared to answer their need and direct them to a trusty source, you can lose a potential buyer.  A professional realtor works with a complete team that their clients profit from.  For example lenders, title reps, termite companies, inspection companies etc...Because the realtor works exclusively with these people on every transaction they'll be trusty advisors to you.

Am I prepared for all the legalities that come with selling a home?

Incomplete paperwork, lack of inspections or not disclosing properly can kill a deal.  Have you been informed of all the necessary steps to sell your home?  You might wish to consult with a professional realtor.

Do I know anything about contracts, agreements and disputes before or after an offer is presented?

What if a buyer has a dispute?  You should put all negotiations and agreements in writing to avoid this.  Another deal breaker is the misinterpretation of what was negotiated!

Do you know which necessary professionals you'll need to contact?  Who will you use for Title Insurance, Escrow, Termite or Inspector services?

Do you know who the top service providers are?  Randomly selecting services can bust a deal up.  Just like any profession, there are sub par individuals that can slow, delay and even blow the entire transaction up!  Watch your step.