Question of the week:We're planning to sell our house soon and are debating whether to list it with an agent or sell it ourselves. We're very tempted to go "For Sale By Owner" because we'd save over $35,000 in commissions. What's your advice about this? --Moving On in LA
Dear Moving On,
The "For Sale By Owner" route ("FSBO" in advertising lingo) is taken by plenty of home sellers these days. According to a survey by the National Association of Realtors, 13 percent of all homes were sold directly by their owners in 2001. The survey doesn't tell us, however, if those sellers were glad they did it.
For some insight into that, we asked Armchair Millionaire community members about their experiences in selling their homes themselves, and if they'd do it again. Here's a bit of what we heard:
Absolutely. "I sold my home myself and would do it again in a heartbeat! I spent $3 on two "For Sale" signs and because I set the asking price in the same range as similar houses being sold, I got to keep the equivalent of the real estate agent fees (4 to 6 percent of sale price) for myself." --Tony in CT
It depends. "I know from lots of personal experience that a slow housing market almost 100 percent requires a real estate agent, and even in some very strong markets it is very helpful to have one." --Will
No way. "We tried selling our home ourselves a year ago in order to save money. We experienced three months of people never showing up for an appointment, showing up early and showing up late. For us it was a pain-missed meals, changed plans, etc. We finally listed with an agent and it sold in 10 days." --Dave
Is FSBO right for you? It depends. What's the market like in your area? How quickly do you have to sell? Do you have the time and temperament to deal with hordes of perspective buyers tramping through your house? Balance all this out against the amount you would save by not paying a commission to an agent and you should have your answer.
Whether or not you choose go it alone, use my checklist of the key things you can do to make selling your home as profitable (and painless) as possible.
The Armchair Millionaire Checklist for Selling Your Home
THE BOTTOM LINE: For most of us, our homes are the biggest investment of our lives. So when it comes to selling, be sure to either get professional help or to put a great deal of your own time and effort into ensuring that you get the best possible price and terms.
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