News & Observer | newsobserver.com | Business

Published: Jul 02, 2006 12:00 AM
Modified: Jul 02, 2006 01:53 AM

More selling homes on their own

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

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RESOURCES

ONLINE

* ForSaleByOwner (www.forsalebyowner.com/) List your home. Locate local title companies, lawyers and moving companies and other home selling professionals.

* Sell Your Home in Five Days (www.5day.com/) Offers products, signs and books to help promote your home.

* 10 Steps to Take Before You Sell Your House (homebuying.about.com/cs/ sellerarticles/a/home_selling.htm) Recommends such things as getting pre-approved for a loan to buy a new home before selling your old one.

* Home Seller's Information Center (www.ourfamilyplace.com/homeseller/) Lists the dos and don'ts of selling your home

* HomeGain (www.homegain.com/) To compare agents and learn how much your home is worth.

BOOKS

* "Designed to Sell: Make any home the hottest property on the block with expert advice from the popular HGTV series," by HGTV, Vicki Christian ($19.95, HGTV)

* "How to Sell Your Home Without a Broker," by Bill Carey, Chantal Howell Carey and Suzanne Kiffmann ($19.95, Wiley & Sons)

* "How to Sell Your Home in Five Days," by Bill G. Effros ($15.95, Workman Publishing)

* "50 Simple Steps You Can Take to Sell Your Home Faster and for More Money in Any Market," by Ilyce R. Glink ($14, Three Rivers Press)

* "Get The Best Deal When Selling Your Home, Wake/Orange, North Carolina Edition," by Kelly Cobb and Ken Deshaies ($18.95, NA)

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He used a new Web site, www.zillow.com, to look up comparable sales and decided to ask for $187,000, which he got.

Sellman said a standard 6 percent commission would have eaten most of his profit from the sale.

"Our particular neighborhood hasn't appreciated much. Giving away 6 percent really hurts," Sellman said.

It took Sellman three weeks to sell his house. He showed the home about 30 times on weeknights and weekends. He still had to pay a 2.5 percent commission to the buyer's agent but said he saved $6,545 by selling it himself.

Although Sellman is happy with the outcome, he said doing it himself was stressful and time-consuming.

Reducing that strain is one of the lures of the five-day home auction method, said George Cappony, who runs the Web site www.5day.com.

The process was pioneered 10 years ago by author Bill Effros and is growing in popularity.

According to the National Auctioneers Association, residential auctions rose 8.4 percent in 2005, to sales worth $15 billion.

"Most people don't want to have to keep their home in pristine condition for weeks or months," Cappony said. "With the five-day program, they just have to clean it once."

That was one selling point for Rusty Denman, who used the five-day program to sell his Asheville home two years ago.

Since then, Denman has helped half a dozen people sell their home the same way. They include a widow who recently had to quickly sell a home at the Outer Banks.

"I think the more people learn about this, the more they will want to use it," Denman said.

Problems arise

Still, even the shorter auction process can be draining. And it doesn't always work, as McDermott learned.

She followed the process outline closely. She spent hours moving personal belongings into a long storage trailer that was parked on the side of her house. She stripped her home down to just the bare minimum, removing all clutter, to present a model-home atmosphere.

McDermott ordered a home inspection and made it available to all potential buyers. She instructed interested shoppers to write their bid and phone number on a master list.

"I want people to feel they are being treated fairly and honestly," said McDermott during the open house Sunday afternoon. "I want them to feel very comfortable with this process."

She started the bidding below the price she wanted in hopes that people bid it up. When the bidding closed at 7 p.m. Sunday, McDermott had 13 bids on her auction sheet.

She quickly became nervous and began wondering whether she had enough bidders. Not only that, the highest bid of $245,000 was significantly short of the amount she wanted.

Friends encouraged her with prayers and told her that she needed only one buyer. With that, McDermott began calling all the bidders, starting with the highest.

She asked if they were still interested in the house. If they said yes, she called the next-highest bidder and told them there was an offer on the table. If they wanted to remain in the bidding they had to top that amount by at least $500.

At 8:30 p.m., the auction closed with a final bidder offering the exact amount McDermott was hoping for. She and her friends cheered the successful deal.

But the celebration was short-lived.

The buyer backed out two days later. McDermott called the second-highest bidder, but she had already placed a contract on another home. McDermott blamed the rain. She figures that if it hadn't rained on the weekend, she would have had more bidders.

Despite the setback, McDermott said she remains determined to sell her home without the help of an agent. Without having to pay a commission, she said she will offer the home for a bit less in hopes of attracting buyers. "I don't mind giving up a little equity to sell it quickly."

But McDermott said she does have a cut-off point when she plans call an agent for help: "I'll pull the plug before it goes on for two months."


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Staff writer Vicki Lee Parker can be reached at 829-4898 or vparker@newsobserver.com.
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