Selling Your House - List Or Go Solo?

It used to be that the only way to sell your house was to hire a realtor to do it for you. These days that is still the way that most people do it, but a significant number are trying to go it alone or sell as a "FizzBo". The term in the business is actually "FSBO" which is an acronym for "For Sale By Owner". Each way has benefits and drawbacks, so how do you decide?

Realtors generally know the local market and the appropriate laws and customs. They usually have contacts with other realtors who may have buyers for your property and with other professionals who may be needed in getting the transaction closed, (mortgage brokers, etc.). In addition, they control most of the information about the market through their association's MLS. The MLS is a database of information about properties in the local area.

On the other hand, realtors' commissions are not cheap and that can take a bite out of your equity when the property is sold. In addition, there are few regulations or rules. When you hire a realtor, how do you know what he/she will do to sell your house? Will they simply fill out the listing form, slap it on the MLS, and then sit back and wait for someone else to sell it? Many do just that.

Should you sell it yourself? Just think of how much money you'll save! What could you do with that? You won't have to put a lockbox on the front door and have a bunch of strangers wandering through the house when you're not there. You can be sure that the prospective buyers know all about the nice features of your house. You can maintain control of the whole process.

That's true, but be prepared! As soon as you put your sign out in the yard your phone will start to ring. Lots of people will call with questions and many realtors and investors will call wanting to list the house or buy it. If you leave the house, it's essentially off the market until you return because no one is there to answer the phone or show the house to prospective buyers. If you are serious about getting it sold quickly, you will need to do some advertising and get the word out. Otherwise only your neighbors and a few people who drive by will know that you are on the market. A good realtor will pre-qualify a buyer before bringing him to see your house. You may want to find a way to do that so that you don't have a lot of people in your house who have no prayer of buying it.

Many people do sell their houses by themselves, but the great majority are not prepared for the difficulty involved and the time commitment necessary. Before you elect to go this route, do your research. Find out what is necessary. Are there any special rules that are peculiar to your area? Try to talk to other folks who have done it.

If you elect to list with a realtor, be sure to do your research here as well. The best way to find a realtor, like so many other things, is to ask for referrals from people whom you trust. You would be wise to interview at least three people before coming to a decision. You may be spending some time together so it should be someone that you like or are comfortable with. Obviously you need to trust the person. It is also a good idea to find out exactly what the person proposes to do to sell your house. I like to have dates by when various things will be accomplished. If you think of the sale of your house as a project, you would be the project manager, the realtor would be one of your resources and the things getting done by certain dates would be milestones along the timeline of the project. Reduce your agreements to writing.