Selling/Buying Overview . Selling/Buying-The Process
Selling Market Analysis . Buying Market Analysis
Selling/Buying-The Process . Selling Options/Cost . Sell on your own

If your home is in an area where homes are in high demand this may be an option for you. To be successful you will have to be dutiful about returning phone calls and scheduling home appointments. Those appointments may be during the day or evening. You can't sell your home if people don't get in to see it.

For sale by owners tend to think they are saving the full commission of a sale when in fact it most likely will be less. Looking at it another way, if you sell on your own there is a very good chance you will sell to a buyer that is working with an agent and that agent will expect 2.4%-3% of the sale price. So by selling on your own you are not really saving 6% (if that is what an agent would charge for full service) - you are saving 3% - the difference between 3% and 6%. So you must ask yourself if it is worth your time to save the 3%.

Cost to sell on your own: $-0- to $5,250 (For the "0" you should place a value on your time, the costs of advertising and any attorney costs you may incur.) The $5,250 represents the difference between the 3%-6% noted above.

Sell using a fee for service Real Estate firm

You can find a real estate firm that will charge you a flat fee for a menu of services which include MLS advertising, a lawn sign and other services. That is in addition to the 2.4%-3% you may also offer as part of the co-broke to other agents.

Based on the level of service you contract for, you can expect to pay $600-$2,000 as a flat fee for a menu of services real estate firm. In addition, you may pay 2.4% -3% to a co-broke agent (an agent who sells the home to a buyer). Again, only you can decide if the potential savings, offset by the flat fee and co-broke costs, are worth your effort.

Cost: $600 - $5,650 The $600 represents a sale without a co-broke payment while the $5,650 is illustrative of a fee for service cost plus a co-broke fee.

A Traditional Real Estate Firm.

I don't believe agents sell homes but I do believe agents market and service the sale of homes. That involves the market analysis, marketing, scheduling showings, showing the home, preparing the offer and any counter offers and amendments and getting the home to closing (which is what you want as a seller).

Based on your home location and your time and expertise, I believe there is a benefit to using a real estate firm. I also believe in the majority of cases that you will end up paying a broker (if you are selling on your own) a 3% fee. So the real cost to use a full service real estate firm is the difference between 3% and 6%, not 0 and 6%. Again, fees are set by each individual firm.

Cost: $10,500 if the fee is 6%, fees are set by each firm and will vary. If you were to choose one of the lower cost forms of selling, you must factor the difference between those costs - $5,650 - and those of a full service firm, $10,500. That difference, $4,850, represents the value of your time in marketing and showing the home.

With a traditional real estate company you pay for the services of marketing the sale of your home, showings and the processing of the sale to closing. You are also paying what is referred to as a co-broke fee, a fee which is paid from the commission to another broker who brings a buyer to the table.

What option you ultimately choose will depend on location, your time flexibility and your ability at marketing and servicing the sale. What option you choose will impact on your overall plan to sell and buy and must be considered in the planning stage.

Please remember that false promises will not help you meet your goal and plan. If it sounds too good to be true, it probably is. Make your decisions based on information. To do that demand the information you need from the Realtors you talk to.