Spring Break
The risky realities of selling without a realtor
Jessica White/DC Columnist
Issue date: 10/29/07 Section: Business
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Dear Ms. Mortgage Maven,
Can you give me information on selling my property myself? My wife and I are expecting our second child, and we want to buy a larger house. Since we need every penny from the current house to put down on the next house (the average price in the neighborhood we want is about $650,000), I thought I could sell the house myself without a realtor. I see "FSBO" (for sale by owner) signs in front of other properties that are not as nice as mine, so I figured that if they could do it, I could do it too.
Thanks!
Lawrence M.
Dear Lawrence,
If you want to maximize the profit on the sale of your current primary residence, I strongly suggest that you hire a licensed real estate agent. During the recent real estate boom, it seemed that real estate agents did not have to do much to earn their commission - they seemingly just hung a "For Sale" sign in the front yard and watched multiple offers pour in.
In today's market, it is more important than ever to have an expert price and market your house. A house that is not priced for today's market can sit on the market for months, without even a nibble. It is particularly hard for sellers, even those using a realtor, to recognize that they will not get the same price for their house that their neighbor did in 2005. The chance that you will overprice your house, or even underprice your house to overcompensate for the downturn in the market is high. And have you ever marketed anything in your life before? Do you really want your first foray into marketing to be the sale of a half-million dollar asset? I don't even think I could price my old Honda accurately for resale - but if I underprice it the most I probably would lose is a couple hundred bucks.
Today's real estate agents generally do more than list your house for sale. They can provide crucial advice in getting it ready to sell for top dollar. They can offer design and "staging" advice ("staging" is essentially using yours or rented furnishings to showcase your home, and helps show potential buyers how to use the space, particularly if you have an awkward or unconventional feature in a room).
Can you give me information on selling my property myself? My wife and I are expecting our second child, and we want to buy a larger house. Since we need every penny from the current house to put down on the next house (the average price in the neighborhood we want is about $650,000), I thought I could sell the house myself without a realtor. I see "FSBO" (for sale by owner) signs in front of other properties that are not as nice as mine, so I figured that if they could do it, I could do it too.
Thanks!
Lawrence M.
Dear Lawrence,
If you want to maximize the profit on the sale of your current primary residence, I strongly suggest that you hire a licensed real estate agent. During the recent real estate boom, it seemed that real estate agents did not have to do much to earn their commission - they seemingly just hung a "For Sale" sign in the front yard and watched multiple offers pour in.
In today's market, it is more important than ever to have an expert price and market your house. A house that is not priced for today's market can sit on the market for months, without even a nibble. It is particularly hard for sellers, even those using a realtor, to recognize that they will not get the same price for their house that their neighbor did in 2005. The chance that you will overprice your house, or even underprice your house to overcompensate for the downturn in the market is high. And have you ever marketed anything in your life before? Do you really want your first foray into marketing to be the sale of a half-million dollar asset? I don't even think I could price my old Honda accurately for resale - but if I underprice it the most I probably would lose is a couple hundred bucks.
Today's real estate agents generally do more than list your house for sale. They can provide crucial advice in getting it ready to sell for top dollar. They can offer design and "staging" advice ("staging" is essentially using yours or rented furnishings to showcase your home, and helps show potential buyers how to use the space, particularly if you have an awkward or unconventional feature in a room).
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