Going solo in slow market a challenge
Wednesday, 8 October 2008
Adrian Sainz
Despite the glut of homes on the market, falling prices in many areas, and competition from bargain-basement foreclosures, plenty of homeowners still want to sell their properties without a real estate agent.
For the intrepid and value-minded homeowner, selling a home without an agent has some distinct advantages: saving the typical 6 percent commission, no conflicts of interest, and more control of the process.
But going solo also can be time-consuming and mentally challenging. Sellers must research the market, advertise and show the home, negotiate with buyers and learn the legal and financial details behind real estate transactions.
"The majority of people that use our services are independent-minded folks," said Greg Healy, vice president of ForSaleByOwner.com. "A lot of these people want to sell the property on their own for the feeling of being successful. . . . They're going to know the best features of their property better than some agent."
Of course, real estate agents have their benefits. They have access to the Multiple Listing Service, which advertises homes for sale to other agents, and contain property details and sales transaction data. The agents pay for advertising and marketing costs, and can often devote more time to showing the property than an owner.
The ideal agent also has a more sophisticated knowledge of the local market and contract laws, and can provide negotiation and screening skills that are integral to securing a buyer. The ideal agent also knows how to prepare a home for sale.
"The value that a Realtor brings to the transaction is helping a buyer sort through all the information," said Walter Molony, a spokesman for the National Association of Realtors. "Buyers want negotiation skills. . . . If you don't have an intermediary, you can be at a disadvantage."
Last year, 12 percent of sellers skipped the real estate agent, down from a peak of 18 percent in 1997, according to an NAR survey. Why? The complexity of real estate transactions has increased, as has the time it takes to market a property, according to the survey.
Like BuyOwner.com, other online listing services-such as FSBO.com and ForSaleByOwner.com-have packages that are priced differently, based on services provided.
For example, ForSaleByOwner.com has packages ranging from $89.95 to $899. Basic features include an online listing with color photos, and printable flyers. Packages also can include yard signs, a report with data on up to 20 recent sales in the area, and even an MLS listing.
After researching the Internet, sellers then should learn about pricing in their area, realizing the tried-but-true cliche that "All real estate is local."
Access to the MLS would be great, but daily driving tours of the neighborhood also are useful because sellers can pinpoint homes with for sale signs on their lawns and question the owners on how much they are asking and how much interest they are getting.
.....
AP
Despite the glut of homes on the market, falling prices in many areas, and competition from bargain-basement foreclosures, plenty of homeowners still want to sell their properties without a real estate agent.
For the intrepid and value-minded homeowner, selling a home without an agent has some distinct advantages: saving the typical 6 percent commission, no conflicts of interest, and more control of the process.
But going solo also can be time-consuming and mentally challenging. Sellers must research the market, advertise and show the home, negotiate with buyers and learn the legal and financial details behind real estate transactions.
"The majority of people that use our services are independent-minded folks," said Greg Healy, vice president of ForSaleByOwner.com. "A lot of these people want to sell the property on their own for the feeling of being successful. . . . They're going to know the best features of their property better than some agent."
Of course, real estate agents have their benefits. They have access to the Multiple Listing Service, which advertises homes for sale to other agents, and contain property details and sales transaction data. The agents pay for advertising and marketing costs, and can often devote more time to showing the property than an owner.
The ideal agent also has a more sophisticated knowledge of the local market and contract laws, and can provide negotiation and screening skills that are integral to securing a buyer. The ideal agent also knows how to prepare a home for sale.
"The value that a Realtor brings to the transaction is helping a buyer sort through all the information," said Walter Molony, a spokesman for the National Association of Realtors. "Buyers want negotiation skills. . . . If you don't have an intermediary, you can be at a disadvantage."
Last year, 12 percent of sellers skipped the real estate agent, down from a peak of 18 percent in 1997, according to an NAR survey. Why? The complexity of real estate transactions has increased, as has the time it takes to market a property, according to the survey.
Like BuyOwner.com, other online listing services-such as FSBO.com and ForSaleByOwner.com-have packages that are priced differently, based on services provided.
For example, ForSaleByOwner.com has packages ranging from $89.95 to $899. Basic features include an online listing with color photos, and printable flyers. Packages also can include yard signs, a report with data on up to 20 recent sales in the area, and even an MLS listing.
After researching the Internet, sellers then should learn about pricing in their area, realizing the tried-but-true cliche that "All real estate is local."
Access to the MLS would be great, but daily driving tours of the neighborhood also are useful because sellers can pinpoint homes with for sale signs on their lawns and question the owners on how much they are asking and how much interest they are getting.
.....
AP