If you are thinking about selling by owner, but worried about whether you can handle the task without the help of of a real estate agent, read on.....

1) Preparation: Regardless of whether you sell by owner or use an agent, preparation is up to the seller. Make necessary repairs, declutter, make your home appeal to buyers (staging), sprucing up your curb appeal....these are all areas that must be addressed before you announce your property to the market. The seller is always responsible for Property Disclosure, regardless of agent representation is used or if selling by owner. Cost of preparation is the same for both.

2) Pricing:

WITH AGENT: Agents provide free CMAs (Comparable Market Analyses) which include comparable home sales and of properties currently on the market, information on their companies and their services and estimate a price range in which they feel you could start off. Make sure the information is left with you to srutinize later. You should interview at least three agents and compare their CMAs, as the results may vary greatly, depending on an agent's experience, familiarity with the market and desire to get the listing. CMAs are SALES TOOLS, designed to promote their agency and services. Remember, banks don't lend money based upon an agent's opinion of market value. They hire a professional appraiser to protect their interests before loaning money to your buyer. A CMA is free and is considered the cost of doing business to the agent.

BY OWNER: Skip the free CMA and go right for an appraisal. The results of a CMA may be unreliable as the agent has a vested interest in the outcome. By hiring a professional appraiser and paying for the report, the resulting market value given will be similar to what the lender's appraisal report will show and allow the loan to go through more easily. The report will cost you around $275. and the expense will be worth it in the long run.

3) Marketing/Advertising:

WITH AGENT: When you list, the agent is responsible for all advertising and marketing. You pay for it in the hefty rear-end commission, of course. Ongoing advertising can vary from agent to agent. It is best to be very specific and get everything in writing when inquiring about how your advertising budget is being spent. For example, if the agency says they'll advertise your home in the newspaper, ask about the frequency of insertion, size of the ad and whether a picture will be used. It's hard to calculate an agent's cost per individual ad for a seller, as much of this is ongoing marketing.

BY OWNER: Advertising and marketing becomes your responsibility when selling by owner. The key here is getting wide enough exposure to bring in serious buyers -- and offers. The world of marketing has changed and gone beyond the classifieds and a yard sign. The internet is used by over 70% of buyers today and should be part of your overall strategy. Research this area carefully as many FSBO websites contain lots of outdated properties and employ the use of call centers to divert buyers from contacting you directly. As 85% of buyers purchase regionally, you should look for a for sale by owner magazine in your area. See our Helpful Links section for publishers outside Massachusetts. Advertising costs will vary depending on how long the home is on the market, and the type of advertising medium chosen. The exact expense can depend on where you choose to advertise. A classified ad in your local newspaper may cost $45. for one day, but what are you doing the other 29 days to expose your property to buyers. What about buyers who don't read that paper? One ad for an open house might cost $75., but failure to link this to an internet ad where a slide show is located is not effective use. Most of our advertisers can expect to pay between $250 - $500 in a seller's market, including signs and other products. The advertising cost may increase slightly in a buyer's market due to more properties being in competition and the length of time on market longer. Higher priced homes generally take longer to sell, as well as homes that are overpriced for the market.

4) Showing Your Home:

WITH AGENT: Agents are responsible for fielding phone calls from buyers and scheduling showings and hosting open houses. (Fact: Less than 2% of listed properties are sold as a direct result of an open house. Agents work open houses to find more buyers for other properties.) Your job will be to keep your house available EVERY DAY, just in case someone wants to come by. This means making arrangements for child and pet care, making beds, picking up toys -- you get the idea -- before you leave for work every morning. There is no cost involved, just your time and sanity!

BY OWNER: If you sell by owner, you will be speaking to buyers dirctly. You will want to use a call sheet to jot down important information about potential buyers and to record the date of each call. One of the unexpected stress reducers when selling your own home is the ability to schedule showings to fit your schedule, not someone elses. Not having to keep your house clean 24/7 - PRICELESS.

5) Offer and Negotiation:

WITH AGENT: When you list a property, the agent will interact with potential buyers and agents who may be representing buyers. In fact, agents prefer sellers and buyers to be kept at an "arms length", fearful that one of them could screw up the sale if they met face to face. The agent is responsible for filling out the offer form and drawing up the purchase and sales agreement.

BY OWNER: When you sell by owner, you will be meeting directly with your buyers, learning a bit about their situation, motivation and potential concerns. It is often easier to transmit messages and resolve concerns during the negotiation process without an intermediary. While in many states, a title company is used, in Massachusetts it is customary for attorneys to handle the closing of a real estate sale. Your attorney will handle the legal process from the point the offer is made, by preparing the Purchase and Sale Agreement, holding deposit monies in escrow, performing the title search and, among other duties, keeping everything on schedule. The cost to a seller is between $500 - $1000. for a typical closing. Some attorneys will give a discount if they also represent you as a buyer simultaneously. Be sure to ask if that is an option.

So, if you have time to answer the phone and schedule appointments, possibilty hold an open house, and
have a realistic marketing strategy, you are probably an excellent candidate to sell "by owner". What can you save? Well, you could pay $20,000 commission (based on an average $350,000 home) or you could pay around $1,500. keep your hard earned equity. It's your choice, but know that we're here to help make it a great experience.