When an owner attempts to sell their own home it is often called a "FSBO" (For Sale by Owner). Many homeowners struggle with the decision of whether or not to attempt this. I will tell you this though, bang that "FSBO" sign into your lawn and your phone will start ringing. You will have the occasional buyer call, but most calls will be Realtors attempting to woo you into listing your home with them. You may even have one or two
curious neighbors call trying to be discrete and see how much you want for your home.

I am a Realtor, and I am not going to tell you that you must list your home with a Real Estate Agent. I am a very strong proponent of saving money. There is a good reason for thinking of trying to sell your own home, if you consider the average real estate commission is 6%, you could potentially save $12,000 on a sale of a $200,000 home. That is a lot of money to keep in your pocket on your sale.

With this much savings, why is it that an overwhelming number of FSBO sellers, in fact over 90%, end up listing with a Realtor? There are a lot of reasons. There are various studies done to determine if FSBO's net more or less than sellers that use Realtors. "USA Today" and the "National Association of Realtors" have recently published articles proclaiming that FSBO sellers net 17% and 24% respectively, LESS on their sale than if
they would have used a Realtor. (The net difference is after they pay the Realtor's commission.) This is a lot of money when you figure out how much the average home sells for. (e.g.. On a $200,000 sale, 17% is $34,000, and 24% is $48,000.... that is A LOT of money!)

Why do you suppose these studies say that sellers net so much more when they pay a commission to a Realtor? First of all, the amount of marketing that most Real Estate offices do coupled with the listing being entered intothe Multiple Listing Service reaches many more potential buyers. The home is exposed to many more buyers than any FSBO could ever reach, no matter how much they spend advertising their house for sale. The more buyers you get to see your home, the more chance you have of selling, and the greater the chance of getting your price.

When selling your home, EXPOSURE is key. If no one knew your home was for sale, no one would look at it, would they? Well, put out a "For Sale' sign, and you may get a buyer or two to take a look. Put it in the Multiple Listing Service, you'll reach more buyers, giving you a much better chance of finding the right buyer for your home.

Consider one more step... place your home listing to the World Wide Web through all the internet search sites. The internet is now and I am sure will continue to be the first and best place for buyers to look for a house without feeling pressured at all by a sales person. It is quickly becoming the top method of reaching buyers. Buyers can look anonymously at homes that are being offered for sale, they can find out where they are, and drive through the neighborhoods to see where they want to buy, without any pressure. As someone trying to sell their home, keep in mind that the more people a home is exposed to, the better your chances of finding your buyer. And the better your chances of getting the price you want or need to get.

As buyers are looking for a house, if they see a FSBO, they know you are saving on an agent's commission. Their offer will usually reflect that, wiping out the financial incentive to do it all yourself. As a matter of fact, I often hear how "IF" a buyer can afford what the home is selling for, at a FSBO, they often offer severely low numbers because they want to see what kind of response they get. The buyers KNOW that these sellers are
not getting the activity of a home that is otherwise listed for sale, so they figure that the sellers will take less to close a sale.

To be continued....