News & Observer | newsobserver.com | The lure of for sale by owner

Published: Jul 02, 2006 12:00 AM
Modified: Jul 02, 2006 01:51 AM

The lure of for sale by owner

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In the past five years, the Internet has revolutionized the real estate market, said Colby Sambrotto, chief operating officer of ForSaleByOwner.com.

Before the Web, buyers had to spend time driving around with an agent. Now they can go online for hundreds of home listings that include photos and detailed descriptions. That type of exposure has made it much easier for people to sell homes on their own.

"Selling your home is not rocket science," Sambrotto said. "There is plenty of free information on the Internet on how to do it. It just takes some information, a title company and a lawyer." But he cautions that this route is not for everyone.

Thinking about selling your home without a real estate agent? Here are some tips.

CLEAN UP AND ELIMINATE CLUTTER

Everything must be spotless, tidy and organized. Think of a model home.

FOCUS ON CURB APPEAL

Clean the gutters. Store and organize items that make your yard look messy. Make your front entry inviting by decorating the space and painting the door. This is the buyers' first impression of your home: Make it a good one.

PREPARE FOR THE INSPECTION

Most buyers will hire a professional to inspect the home. If you have a leaky roof or some other problem, fix it.

SET THE RIGHT PRICE

Most sellers underprice or overprice their homes. Figure the value of your home by comparing it to similar homes recently sold in your neighborhood. Visit Web sites that offer free comparisons, such as Zillow.com. Talk to neighbors who have bought or sold houses recently.

GET LEGAL HELP

There are myriad laws and regulations surrounding real estate transactions, with more added every year. Hire a lawyer to review the buyer's contract. You will need to work with a title company to record the sale of your home.

ADVERTISE

Place a "For sale by owner" sign in your yard and at the front of your subdivision or at the nearest corner off major roads near your house. Find a Web site that will list your property for a small fee, such as www.houselocator.com and www.americagoesfsbo.com. Make sure your newspaper ad directs buyers to a Web site that includes photos. Distribute fliers in the neighborhood.

HOLD AN OPEN HOUSE

Invite your neighbors and tell them about your home and asking price. That's a good way to find potential buyers.

GET TOUGH

A seller must be professional and thick-skinned. It can be stressful having a house full of people pointing out what they dislike about your home.

GET READY TO NEGOTIATE

Always make a counteroffer to a buyer, and spell out terms, such as accepting the house as-is.

CONSIDER AN AGENT

If you'd rather not take the time, don't know how to calculate the value of your home or don't like negotiating with strangers, hire a professional. Two major risks of selling your home alone are listing it below market value and cheating yourself out of profit, or listing it too high and causing the property to sit on the market for months. You may not eliminate real estate agents from the equation. Remember that the majority of buyers use a real estate agent.

PLAY IT SAFE

Tell buyers to call for an appointment. Try not to show your home alone. Invite someone to help during the open house.

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