Some homeowners are tempted to sell their home on their own instead of using
a professional real estate agent. A portion of those owners are successful.
But, many are not successful. The potential for savings is much more elusive
than many anticipate. For example, when a buyer considers a home being sold
directly by an owner they are going to discount any offer they make in
recognition that there is no commission. Put yourself in the buyer's shoes.
Wouldn't you? So, the dollar savings the seller may have initially
anticipated is considerably less than expected.

If you do decide to sell your home on your own, be very careful in the
selection of your asking price. FSBOs tend to attract investors and bargain
hunters seeking a steal. Besides looking for a commission discount they're
also looking for FSBOs that have priced their home below market value. I
have personally witnessed FSBOs sell their homes for tens-of-thousand of
dollars below market value and proudly tell me how they "successfully" sold
their home without the aid of a professional real estate agent. As you can
imagine, intoxicated by their apparent success, they dismissed anything I
had to say - tragic.

Another factor that bites into potential savings is the cost of marketing a
home. A seller may get lucky with just a "for sale" sign on their lawn. But,
chances are they're going to need to spend some money to get marketing
exposure, and this gets into the BIG hidden costs of marketing your home on
your own. You're much more likely to get multiple offers on a home when it's
professionally marketed. An Internet-savvy professional will market a home
on a variety of consumer web sites (e.g. Realtor.com, Yahoo Real Estate).
This kind of exposure casts a much wider net and greatly increases the odds
of getting multiple offers. Multiple offers translate to a higher price,
often above list price.

Studies by the National Association of Realtors have consistently
demonstrated that FSBOs average a lower sales price than professionals. For
example, the 2005 Profile of Home Buyers and Sellers indicated that FSBO
sales sold for more than thirteen percent less than homes sold by a real
estate agent. It's pretty much the same story every year this topic is
studied. How is this possible? One reason, as I previously indicated, is the
power of professional marketing. Would you rather have one buyer, or two or
three buyers making offers on your home? Furthermore, it's not enough to
find a buyer. After an offer is received and accepted there are many things
that can go wrong and kill a deal. You need a good real estate agent to
shepherd the sale all the way to closing.

Finally, in addition to diminished monetary savings, I haven't even begun to
discuss issues like the logistics of showing a home seven days a week,
differentiating real buyers from lookers, security and safety concerns and
the higher risk of liability when a homeowner sells on their own. Sometimes
homeowners flying solo have an overly simplistic view of what's required to
successfully sell a home. There is a reason why real estate agents are
required to be licensed by the state.

Is it impossible to sell your home on your own? No, it's not impossible.
However, the odds are definitely stacked against you. But, there's a bigger
issue here. When planning to sell your home the best approach is the one
that yields the highest net price within your time frame. An overemphasis on
avoiding or lowering the commission without understanding what methods get
the most amount of money in a seller's pocket is an all too common mistake.
Don't make this mistake, before deciding to sell on your own do some
research. You may conclude that like so many other services we utilize on a
daily basis, hiring a professional may be your best and most profitable
option.

Ed Chaparro is a licensed New Jersey real estate agent with Prudential New
Jersey Properties servicing Metuchen, Edison and near-by communities in
Middlesex, Union and Somerset counties in New Jersey.

Ed Chaparro has over twenty years of experience working with technology and
putting it to use to help people and businesses. Ed Chaparro mixes
traditional real estate marketing (MLS, signs, direct mail) with a very
aggressive Internet marketing plan that maximizes the number of buyers
reached.

For buyers, Ed Chaparro provides methods and communications that enable them
to view their options in manner that is efficient, informative and free of
any hard-sell tactics. This approach has garnered Ed Chaparro a great deal
of buyer loyalty.

For more details and information please visit EdChaparro.com