No law requires you to hire a real estate agent when you sell a house. You can sell your home yourself, without the assistance of a real estate agent. Selling a house without an agent is called a FSBO (pronounced "fizzbo") -- For Sale By Owner. Although it can be a fine way to save on commission fees, those who try it usually develop some appreciation for how agents earn their commission.
If you want to go it alone, make sure you know what you are getting into. Learn about what the process entails, whether it is a good idea for your situation, and where to get help when things go wrong. Be sure you have the time, energy, and ability to handle all the details -- from setting a realistic price to negotiating offers and closing the deal.
Before you dive in, you should also evaluate the market and your schedule. FSBOs are usually more feasible in sellers' markets where there's more competition for homes, or when you're not in a hurry to sell.Top Ten Tips for Selling Your Home by Owner
1. Know Your Community
Be prepared to provide potential buyers with all the information they need about your community ie; schools, shopping, traffic alternatives, crime statistics and local art & recreation opportunities.2. Create Curb Appeal
Make sure the outside of your home is attractive and makes your potential buyer’s want to see more. Others see things that we sometimes miss because we get used to things the way they are and don’t see the possibilities. A Realtor can provide an unbiased analysis of your homes curb appeal and suggest ways to improve it. 3. De-clutter, Clean, Repair & Stage
Do you know what should stay and what should go? What repairs and upgrades will make your home most appealing and result in a higher sales price? Which issues can be ignored and which ones could destroy a deal? Do you know the best way to arrange the furniture and decorations to appeal to your potential buyers? Again, we get used to things being a certain way, arranged for the way we live in the home. That is not always the best way to sell a home. A Realtor has the experience to know which repairs and changes to make to get you the best sales price on your home in the fastest time frame possible.4. Price the Home Right
You will need to know what homes have sold recently in your neighborhood, and how the market has changed since then. Be sure to account for differences in the properties. Do you know how much value those differences add or subtract from the sales price? Do you understand the difference between the asking price and the sold price? Buyers who are shopping FSBO's are looking for a deal. They know how much you are trying to save on commissions, and they are trying to save it too. Buyers today can easily search the MLS to know what your home would sell for with a Realtor. Chances are they will offer you 6% less than what they think your home is worth. Are you willing to do all the work and take all the risk for nothing?5. Create Multiple Means of Exposure
There are many ways for FSBOs to create an online presence. How much time do you want to spend on advertising? You can’t spend hours creating virtual tours and posting ads when you still have to do your day job. For a Realtor, this is the day job. They have proven avenues of advertising that they can implement right away.Let potential buyers know you are on the market with a yard sign and flyers. Do you know who is looking at your home? Do you have a 24hr number for buyers to call for more information and a way to track those calls? A good Realtor has the ability to follow up with every potential buyer to make sure they understand all that your home has to offer.6. Answer Your Phone
Your home is only on the market when you are available. If you are at work and can’t take calls from potential buyers, they will move on to the next 20 houses on their list. Chances are, they will not try again. Are you prepared to be tethered to your phone? It takes, on average, 150-200 phone calls to sell a home.7. Take Some Time to Learn How to Show Your Home Safely & Effectively.
Do you know the best way to show your home? Little things like who should enter the room first, knowing what to say and knowing when to give a buyer space can all have a big impact on the effectiveness of a showing. Do you have time to follow up with potential buyers?Take your safety and security seriously. When you let a potential buyer into your home you have no way of knowing if they are serious, if they qualify, or if they are just scoping out your house to rob later. Think about that for a moment. What better way for a thief to see what you have that he wants, then to wander through your entire house for a pre-burglary tour? He even gets to look in the closets.The best way to protect your valuables and your family is to work with a Realtor. You will be protected by the fact that all potential buyers will be accompanied by a Realtor and will be screened and qualified to buy your home. Every Realtor that shows your home will be recorded in a database when he opens the lockbox to get the key. You will know who was in your home and when.8. Partner with a Mortgage Professional
Many potential buyers have not been pre-approved or even know who to go to for the loan. All mortgage brokers are not created equal. They have different loan programs available to them, and a varying range of knowledge and commitment to their clients. With the increasing difficulty of getting a loan, knowing which mortgage professionals are really good at what they do can make the difference between moving on with a check in your pocket, and watching the deal fall apart 2 days before closing. Realtors have worked with many mortgage professionals and know which ones can be counted on to get the deal done.9. Negotiate & Close the Deal
So you got an offer! The hard part is over, right? Wrong. It's a buyer's market out there. And with all the information available online, today's well-informed buyers are tough negotiators. Even after you have agreed on a price there are many things that can come up between the acceptance of an offer and the closing date. Don’t let the deal fall apart. Real estate agents have been through the home-selling process before and are trained in negotiating tactics. They put all those skills to work for their boss – you.10. Know the Real Estate Laws for Your Area
To sell your house by yourself, you must learn the legal rules that govern real estate transfers in your state, such as who must sign the papers, who can conduct the actual transaction, and what to do if and when "encumbrances" arise that slow down the transfer of ownership. You also must find out if there are any state-mandated disclosures as to the physical condition of your house. You will need to get a lawyer familiar with real estate law to oversee the closing and finalize the paperwork.There are many ways to get yourself sued. Do you know all of them and how to avoid them? Realtors are trained and insured to protect you and your assets. They take responsibility for the completeness and legality of the contract. They stand between you and the buyer to take the brunt of any blow that might come.
