More selling homes on their own

But cutting out the middleman is risky and time-consuming for novices

Last Sunday, Genny McDermott's Durham home was bustling with activity. Dozens of shoppers walked through the five-bedroom home that would be auctioned to the highest bidder that night.

McDermott greeted each visitor with her hand outstretched: "Hi, I'm Genny McDermott. I am the owner. Welcome."

She quickly explained that she was following the plan outlined in "How To Sell Your Home in 5 Days," a book with a growing number of fans.

For hours, McDermott patiently answered questions about such things as the roof's condition, nearby bike trails and home inspection. The air was sweet from the smell of her freshly baked chocolate chip cookies. Visitors peeked inside closets, inspected appliances and measured rooms.

McDermott spent the previous two weeks preparing for the open house, cleaning every room in the house, including windows, blinds and baseboards, moving almost all her personal belongings into storage, putting up signs and more.

"I'm exhausted," she said. "I haven't gotten a full night's sleep in weeks."

Some friends had sold their homes using this type of do-it-yourself auction. They convinced McDermott she could do it, too. Money was a big factor.

She is part of growing trend among homeowners who don't mind the hassle of selling their own houses to skip paying thousands of dollars in commission fees to a real estate agent.

Annual home sales listings on ForSaleByOwner.com, which provides services to individual home sellers, have doubled each year for the past four years, said chief executive Colby Sambrotto. In 2003, the site listed about 24,000 homes.

This year it's on track to list more than 200,000 nationwide, Sambrotto said.

"The residential real estate market has changed more in the past five years than it did in the previous 90 years combined," he said. "Most of that is due to the Internet. It's a great tool for buying and selling a home."

Nearly 80 percent of buyers say they use the Internet to search for a home, up from only 2 percent in 1995, according to a National Association of Realtors annual survey.

But real estate agents say it's a tough job, selling homes.

It's risky for people to do it without professional help because many sellers end up making much less or having a home sit unsold for longer.

"Consumers understand the value of what a Realtor brings to the table -- exposing the property to buyers around the world, connecting with relocation services," said Thomas M. Stevens, president of the National Association of Realtors. "They understand that to market it themselves is a 24/7 job. They have to be available for people to view their home all the time."

Most homeowners hire real estate agents, who can help sellers save time, reduce stress, avoid legal trouble and get a fair price.

Down from peak

According to the Realtors research, the number of sellers who conducted transactions without the help of a real estate agent fell from a peak of 20 percent in 1987 to 13 percent in 2005.

More than a third of those for-sale-by-owner transactions were "closely held" between parties who knew each other in advance.

Stevens said the number will continue to decline as the market shifts to the buyer's advantage.

His group's annual survey also showed that Realtors generally sell homes for 16 percent more than a nonassisted seller does.

That wasn't the case for Greg Sellman. He sold his Morrisville home last week.

Sellman interviewed four real estate agents, and none of them suggested that he sell his home for more than $184,000. But he thought that price was too low.