Return to the Press Room
October 1, 2006
Keys to Selling Your Home Without an Agent
Special to The Washington Post - October 1, 2006 by Rebecca R. Kahlenberg
Most home sellers use real estate agents, but there's nothing that says you have to.
If you go it alone, you won't have to work around an agent's schedule or follow her advice on what color to paint your kitchen. And you could save all that commission money -- typically about 6 percent, or $30,000 on a $500,000 property.
Of course, you will have to fit showings into your own schedule and decide on that paint color yourself. And you could end up having to pay a commission to the buyer's agent -- usually 3 percent.
Even fans of FSBO -- pronounced fizz-bo, short for for-sale-by-owner -- say you shouldn't expect it to be a cakewalk. "Many people underestimate the complexity of the transaction," said Kevin Wood, president of 1-800-ByOwner.com.
Perhaps that's why only 13 percent of U.S. home sellers took the FSBO route in 2005, down from 15 percent in 1995 and 19 percent in 1991, according to a survey for the National Association of Realtors. (Of course, that's not a group that's enthusiastic about selling without an agent.)
Here are some points to consider for FSBO success:
- Prepare your property for sale. "It takes more than a yard sign" to get a home ready, said Ann Telthorst, marketing director for Owners.com, an online real estate service. Outside, mow the law and plant flowers, paint the front door, repair chipping paint, cut shrubs, and trim trees that obscure the house.
"Curb appeal is very important," said Michael T. Malkasian, president of FSBO.com. "You don't want potential buyers second-guessing the house before they get to the door."
Inside, paint rooms that look drab, repair anything broken and de-clutter your home by removing personal effects such as photos on the fridge.
- Set the price right. "It's a real art," said Colby Sambrotto, chief operating officer of ForSaleByOwner.com. "Set the price too high and you won't attract buyers; set it too low and you leave money on the table."
Malkasian said that owners "tend to shoot for the moon and overprice their property." A better approach, he said: "Price a little under market value." That way, you are likely to attract more buyers and "still net more than your neighbor did with an agent."
For pricing help, try visiting such Web sites as http://www.zillow.com and http://www.electronicappraiser.com .
Another option is to ask three or four local real estate agents for a comparative market analysis, which details recent home sales in your neighborhood, said Stephanie Singer, a spokeswoman for the National Association of Realtors.
What if you don't plan to use an agent? "Realtors are happy to help because from their perspective it's a way to make a first contact," she said. "Some Realtors make a living out of converting FSBOs" into clients.
You can also hire an appraiser for about $300.
- Hire a lawyer to handle some of the paperwork. "I recommend that you have a real estate attorney -- not a real estate agent -- prepare and review all the contracts," writes Lori Alden on her site, http://www.fsboprimer.com . Alden calls herself "an economist who has bought and sold several FSBO properties." Legal documents also are sold at most office supply stores and on Web sites, including http://www.uslegalforms.com .
- Market, market, market. Put up yard signs, place classified ads in newspapers, post fliers in your community, and tell everyone you know about your house going on the market.
About 75 percent of buyers use the Internet when searching for a home, according to the Realtors' association, so you also want to be on the Web. It takes "about eight minutes" to place a listing, said Wood of http://www.1-800-byowner.com , one of many sites that handle FSBO listings. Prices on such sites can range from about $30 to several hundred dollars, depending on the services included.
Some companies offer packages that include placing a FSBO listing on local multiple listing services, which are operated for real estate agents, and on Realtor.com, the most widely viewed real estate Web site. Homeowners can't do that directly -- it requires membership, which requires a real estate license.
