Most home owners want to sell their own home because they will save thousands of dollars, right? Let’s see what research and history tell us. Forget the speculation and hypothesizing, let’s examine the facts. Home owners feel that by selling their own home they will save the commission charged by the realtor. Last year, approximately twenty percent of all homes for sale were by the owners. However, only thirteen percent of those homes sold. Over fifty percent of those that did sell were not sure they saved any money. These owners indicated they would use a realtor in the future. Why would so many people list with a real estate agent in the future?

Homeowners found out there were many challenges involved in selling their own home. These included time, legal issues, paperwork, liability, financial problems and day to day inconveniences. Still others reported they did not get the profit they hoped for. Many homeowners figured the additional fees they paid to outside consultants, appraisers, inspectors, lawyers, title companies, advertising and marketing cost would have more than been paid by the broker’s commission. In summary, they did not realize that many of these fees were paid by the real estate agent in behalf of their clients.

However, in addition to this, there are several additional facts homeowners must be aware of if they are to successfully sell their home for maximum profit in minimum time.

FACT #1:  Selling homes is not simple. It has become much more complicated. The number of homes for sale by owner have actually dropped.

The successful selling of a home requires many skills. You must understand the constantly changing real estate market. You must be able to find motivated and qualified buyers. This is not easy. If you price your home too high, your home will stay on the market longer and runs the risk of not selling. When a home is on the market for a long time, it develops a reputation as a problem home… there must be something wrong. If a home is priced too low, you run the risk of loosing thousands of dollars in profit. Some For Sale by Owners found out they actually lost money because of poor marketing and decision making.

Before you decide to sell your own home, ask yourself a few questions. Do you understand the amount of work involved? We live in a day and time when people say “I’ll see you in court”. Do you want to assume that liability?

Do you have the time, energy, knowledge and marketing ability to sell your own home? You must be accessible. That means you must be available to show your home at the buyers convenience, not yours. Buyers do not want to jump through hoops just to look at a home. They want it to be quick, simple and convenient.

Savvy buyers perceive For Sale by Owners as the perfect target for low offers. But that’s not all. As a seller of your own home, you must also know how to screen out unqualified buyers and bargain hunters. If you reduce your asking price, you will almost always receive less money than if you’d paid for the real estate commission.

What do you know about financing? Are you willing to finance a potential buyer? You need to know about lenders, title companies, mortgages, etc. in order to understand what a motivated and qualified buyer looks like.

FACT #2: You Get More Money For Homes when they are sold by a REALTOR

Research shows real estate agents sell homes for 5% to 8% more than homeowners. However, it is not uncommon to see a 10 to 15% increase in the final sales price, depending upon the local market. You don’t want to leave money on the table.

There are usually two reasons why homeowners want to sell their own home. First, they plan on saving the commission. Second, they don’t know a good agent. What they don’t realize is that very few homeowners get their asking price. They almost always receive a lower offer.

But there are additional reasons why selling your own home is so difficult. You have only four ways to find buyers. These are classified ads, for sale signs in the yard, open houses and the Internet.

When you advertise, you must give your address. This means buyers can drive by without ever seeing the inside of your home. How do you plan to capture their name, address and phone number? How will you follow up with them?

Fact #3: Where Do The Best Buyers Come From?

40% come from a REALTOR’S company name or salesperson contact.

18% come from recognized real estate for sale signs.

18% are referred by international relocation services.

15% locate a property and/or their agent on the Internet.

4% responded to an open house but purchased a different property.

1% buy a property advertised in the newspaper.

2% bought for a combination of reasons.

Please note: In today’s market, very few buyers buy as a result of an open house or newspaper ad.

You have only one home to show. A professional realtor has many homes to show. He/she can match buyers with properties. That means the buyer is pre-qualified before they ever see your home.

One of the major problems reported by homeowners was the legal paperwork and required state disclosure laws. You must understand all the legal steps required to successfully sell a home. Many sales fail because of incomplete paperwork, inspections and failure to meet state and federal disclosure laws. If you’re not knowledgeable or comfortable with this, you would be well advised to find a good real estate professional to help you.

Another critical step in the sales process is negotiating with the buyers. This requires knowledge of contracts and places you in a position of liability. This can make the difference in selling your home quickly for maximum profit or having your home continue to sit on the market.

Perhaps you’ve considered listing with a discount broker.  Again, you expect to save money on the commission.  Are you any better off?