Do You Need a Real Estate Agent to Sell Your House?
You don't need to use a commissioned real estate agent to sell your home, but you may want to hire hourly help or pay for a listing service.
No law requires you to hire a real estate agent when you sell a house. (Some states, however, particularly in the eastern half of the country, require a real estate attorney to handle the transfer documents and closing. Check with your state department of real estate to find out whether an attorney is required in your state.)
For Sale By Owner
Selling a house without an agent is called a FSBO (pronounced "fizzbo") -- For Sale By Owner. Although it can be a fine way to save on commission fees, those who try it usually develop some appreciation for how agents earn their commission. If you want to go it alone, be sure you have the time, energy, and ability to handle all the details -- from setting a realistic price to negotiating offers and closing the deal.
You must be aware of the legal rules that govern real estate transfers in your state, such as who must sign the papers, who can conduct the actual transaction, and what to do if and when "encumbrances" arise that slow down the transfer of ownership. You also need to be aware of any state-mandated disclosures as to the physical condition of your house.
Also, be aware that FSBOs are usually more feasible in sellers' markets where there's more competition for homes, or when you're not in a hurry to sell.
If you're interested in going it on your own, and possibly listing your house online on your own, check out sites such as www.owners.com, the largest national FSBO website. To find local FSBOs, see www.fsboguide.com. If you live in a major metropolitan area, check to see which newspapers put their real estate classifieds online.
The Middle Ground Approach
You might consider doing most of the work yourself -- such as showing the house -- and using a real estate broker to help with such crucial tasks as:
- setting the price of your house
- advertising your home in the local multiple listing service (MLS) of homes for sale (a database managed by local boards of realtors), or
- handling some of the more complicated paperwork when the house deal closes.
If so, you may be able to negotiate a reduction off of the typical 5% to 7% commission brokers charge, or you may be able to find a real estate agent who charges by the hour for specified services, such as reviewing the sales contract. "Discount" real estate services are available from franchise operations such as Help-U-Sell (www.helpusell.com) as well as other independent real estate companies and individual brokers.
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Checklist: Questions for Your Real Estate Agent
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