In the past few years, many potential home sellers have contemplated selling their home themselves to maximize their profits. This may seem like a practical option in today's vibrant market. However, the pros and cons of this process should be evaluated carefully before deciding on the best course of action.<br \/> <br \/> The primary benefit of selling your home without a realtor is the broker or agent fees that are averted. Depending on the fee structure and price of the home, this could translate into significant dollars. This certainly can be an attractive option. However, selling your home is not as simple of a process as it may appear.<br \/> <br \/> Last year, approximately fifty percent of the for sale by owners (FSBOs) said they would hire a professional next time, and thirty percent said they were unhappy with the results they achieved! Why?<br \/> <br \/> Many FSBOs felt that the time involvement, the paperwork and the everyday responsibilities were not worth the real estate commissions saved. Many others felt that the financial savings were also a disappointment, as the many up front fees eroded their perceived profits. These fees included monies paid to consultants, inspectors, appraisers and marketing\/advertising costs. You have to be able to return or receive calls 7 days a week, 14 hours a day.<br \/> <br \/> Interestingly, studies demonstrate that many potential buyers wanted the commission saving to be passed onto them. In essence, the real estate fees savings in these instances were not retained by the seller. It is important to recognize that selling a home requires a very comprehensive understanding of the real estate market. If the property is priced too high it becomes a "stale" listing and activety will be limited. If it is priced too low the seller runs the risk of costing themselves significant money. In many instances, under pricing the property can cost the seller more than the commissions saved by selling privately.<br \/> <br \/> While "For Sale By Owner" has become a recent phenomena, it is important for anyone who is thinking of selling their own home to fully investigate this option. Most believe it will save them time and money, but using an experienced real estate agent who has a wealth of expertise will translates into a fast sale with few hassles and a great price. Consider these reasons.<br \/> <br \/> 1. You will not be on MLS, the number 1 tool most buyers turn to when looking for a home. You are thus not marketing your home as well as it should. Your exposure will not be maximized.<br \/> <br \/> 2. If your home isn't marketed properly, it may not sell quickly and thus the price you receive for your home will be less. Then longer a home is on the market the lower the selling price is. The longer it sits, the more apt the impression will be that there must be something wrong with the home and hence it isn't worth as much.<br \/> <br \/> 3. Most buyers prefer to deal with an experienced realtor, as opposed to the actual home owners. Many find the process of negotiating with a homeowner cumbersome and trying.<br \/> <br \/> 4. Negotiating the sale of a property is a skill that requires experience and expertise, neither of which an average homeowner has. The result can be a lower selling price.<br \/> <br \/> 5. Most buyers work with a experienced realtor to find a home and most of those realtors prefer to deal with other realtors when negotiating a purchase. They do not want to deal with the homeowner.<br \/> <br \/> 6. Some buyers will simply ignore homes that are for sale by the homeowner.<br \/> <br \/> 7. If you offer a selling commission to entice realtors to bring in potential buyers, you can expect the savings in broker's fees will be reduced.<br \/> <br \/> 8. The lawyer's fee will be higher, if you use one to help you negotiate.<br \/> <br \/> 9. Realtors are trained professionals who have specific knowledge on how best to sell a home and the follow up necessary in order to assure a smooth closing.<br \/> <br \/> 10. The commission is only paid once you sell your home at the price you are satisfied with not up front for a FSBO website.<br \/> <br \/> 11. Ensuring a successful closing takes a lot of work. These transactions can be lengthy and tedious and ripe with issues. An experienced real estate professional is very important during this process.<br \/> <br \/> <span style="color:#FF0000;"><strong>Some potential questions you may want to ask before embarking on a private sale include:<\/strong><\/span><br \/> <br \/> a) Do I have the knowledge, energy and time to effectively market the sale of my home?<br \/> <br \/> b) Am I prepared to deal with the numerous buyers who perceive FSBOs to be a target for low ball offers?<br \/> <br \/> c) Do I have a comprehensive awareness of the legal ramifications of selling a home? (Many private sales have fallen through due to inaccurate and incomplete paperwork)<br \/> <br \/> d) Am I able to deal with offers, counter-offers, etc. and negotiate a favourable deal? (Many deals have been lost because of a misinterpretation of what was negotiated)<br \/> <br \/> e) Do I have a competent team of professional (lawyers, home inspectors, etc.) ready to see the process to completion?<br \/> <br \/> f) <span style="color:#FF0000;"><strong>Can you afford the risk to market your own home?<\/strong><\/span> Realtors take a big risk when they list a home. They spend all of the money up front whether they finally sell the home or not. So you "give it a try" for a couple of months, it can't hurt at all. Marketing your home is expensive. The most effective effective media tool of all, is the MLS website.<br \/> <br \/> g) <span style="color:#FF0000;"> <strong>Are you a good judge of character? <\/strong><\/span> When a realtor shows your home, they have usually pre-qualified their Buyer as being serious about buying a home. They are most often pre-approved for financing, and know what they can afford, and are ready to purchase. Realtors have usually already met their Buyer and feel safe and comfortable showing them through homes available, they stay with them through the home and have their personal details should their be a problem. You are at risk every time you allow a stranger into your home. Are they serious Buyer's? Can they afford your home? Not everyone is legitimate buyer.<br \/> <br \/> h) <span style="color:#FF0000;"> <strong>Do you understand the paperwork?<\/strong><\/span> You should seriously consider using a lawyer throughout the whole offer stage of any Agreement of Purchase and Sale. However, do you know the fundamental parts of an offer to ensure your best interests are protected. It can be so heartbreaking when Private Sales fall apart due to paperwork incorrectly signed, initialed, Seller and Buyer not quite understanding what each other really mean. Or even worse, when paperwork hasn't properly protected the Seller from an legal recourse from a Buyer after the sale is completed. What if the Buyer can walk away from the sale due to a missed initial and you have purchased another home? Or you sell your home for $10,000 less because of a missed initial? Be careful not to misrepresent anything, whether purposely or not. There are some "shady" characters out there looking out for themselves, not you!