| The number of property owners selling their land | | | | It is important to be patient, price your home fairly |
| independent of a realtor has seen a sharp decrease | | | | but also allow a little wiggle room for the inevitable |
| in recent years. In fact, it has dropped six | | | | price haggling and be extra cautious to avoid |
| percentage points over the last decade, according to | | | | unqualified buyers. This can help prevent deals from |
| the latest numbers from Chicago-based National | | | | falling through. To get a deal in the first place, |
| Association of Realtors. As of the beginning of 2007, | | | | however, sellers must market their property and |
| a mere 12 percent of all real estate transactions | | | | don't shy away from offering incentives like a |
| were for sale by owner, or FSBO. | | | | decorating allowance or paying the fees of the |
| One factor influencing the statistics may be owner | | | | buyer's agent. Among the buying community, FSBOs |
| frustrations with a fluctuating housing market. | | | | are notoriously associated with great deals. Make |
| Owners have other things working against them, too. | | | | sure you arm yourself with the tools to avoid |
| They cannot register property in the MLS listings, one | | | | becoming a casualty of that mindset. |
| of the most popular search tools for property | | | | FSBOs also have a reputation for misleading buyers |
| shoppers. It takes a real estate agent to get | | | | on such things as the true condition of the house or |
| property included on that list. Realtors may also have | | | | the severity of the house's problems. This is not |
| more connections and more techniques, experience | | | | always intentional. Many homeowners really don't |
| and training that could net higher offers. | | | | know the extent of the damage and do not intend |
| Property owners, on the other hand, will know more | | | | to mislead. This is where a crackerjack home |
| about factors like the home's specific strengths and | | | | inspector can come in handy. Not only can a home |
| weaknesses, the neighbors and the schools. They | | | | inspection help justify the home's price, but it can |
| may, however, shy away from pricing their house | | | | also set the buyer's mind at ease and perhaps help |
| high and may agree to come down too quickly. From | | | | close the deal faster. |
| mid-2005 to mid-2006, five percent of real estate | | | | Another good reference tool is a local competitive |
| transactions were closed by realtors who took over | | | | market analysis. This can help ensure that a FSBO is |
| a FSBO that fizzled. Only one percent of transactions | | | | selling for what it is truly worth. The lender's desk is |
| within the same time frame were sellers who started | | | | the worst possible place to find out that a seller |
| with realtor representation and later switched to | | | | overcharged for a home, but it happens all too often. |
| FSBO, according to the NAR. | | | | Realtors are immensely more experienced and |
| FSBO transactions - particularly when handled by | | | | knowledgeable in all things real estate - from selling |
| first-time sellers - have been said to sit longer, sell for | | | | techniques to legal matters. However, at the very |
| less, cause more headaches and increase confusion. | | | | least, a seller would be wise to bring in a real estate |
| So why would sellers even want to try? The | | | | lawyer to ensure the legality of the transaction. It is |
| average real estate commission is about six percent | | | | also a good idea to involve a bank, as opposed to |
| and many property owners see FSBOs as a way to | | | | the seller alone, in the process of handling escrow |
| pocket more cash. In reality, however, NAR statistics | | | | funds. |
| show that homes generally go an average of about | | | | FSBO transactions can be smooth if the seller has |
| 16 percent higher when sold by realtors. | | | | related experience. FSBOs can save money if the |
| For sellers absolutely determined to go it alone, there | | | | seller avoids backing down on price too much. If, |
| are a few key points to remember. There are some | | | | however, the seller finds themselves stalling with no |
| Internet web sites available now that are very | | | | end in sight, it is best to turn to a realtor as soon as |
| professional in appearance and offer FSBOs an | | | | possible. The longer a house sits unsold on the |
| alternative to the elusive MLS listings. Plenty of | | | | market, the worse position the seller will be in. It |
| high-quality photos are crucial with any marketing, and | | | | looks bad to potential buyers and they will wonder |
| Internet marketing is undoubtedly one of the most | | | | why the home hasn't sold. In reality, it may simply be |
| effective methods. Many of these FSBO listing web | | | | a matter of ineffective marketing on the seller's part. |
| sites will now offer extra perks, like yard sign rental | | | | Time is money, and a house sold on commission is |
| and print advertising. | | | | better than a house not sold at all. |