WHAT ARE YOU REALLY SAVING WHEN YOU SELL YOUR HOME YOURSELF?

Most people who try to sell their homes themselves, will put "Brokers Welcome" in their ads, fact sheets and flyers. That is a great idea, considering that over 90% of all homes sold, are in fact sold by real estate agents, even For Sale By Owner Properties! This means these sellers are willing to give licensed Realtors their 3% or 3.5% commission if they bring a qualified buyer. That leaves a perceived saving of 3 - 3.5%-- what is typically paid to the "listing" agent.

In order to save that 3% or 3.5% listing fee, you as the seller will have to:

Spend a minimum of $1,000-$2,000 on advertising, color fact sheets, flyers, postage, signs, and internet presence. You'll have to take time off from work or spend your personal leisure time showing the house, (try to estimate what your time is worth). You'll have to trust your ability to negotiate the best deal with a tough buyer or a seasoned professional real estate agent. Hire a real estate attorney to go over paperwork, assist in writing contracts, to possibly defend you if there is a dispute. ( If there is a legal dispute, attorneys charge by the hour! ) Statistics indicate that roughly 40% of For Sale By Owner transactions were involved in legal disputes involving after sale disputes last year (2003), non disclosure, escrow disputes, etc...

To sell "By Owner" requires the sellers to become marketing experts with in-depth knowledge of mortgage financing, contracts, taxation, advertising, direct mail strategies, psychology, face-to-face selling, and negotiating. Owners must remain at home to man the phones when buyers call. Answering machines do not satisfy the needs of real buyers.

Statistics show (National Association of REALTORS