Selling Your Home Yourself
FOR SALE BY OWNER


As a licensed Tennessee Realtor®, I understand the nuances of our real estate market and can get the optimum price using my eleven years experience, access to marketing programs and knowledge. You don’t really “save” a commission working without a broker because only a licensed Realtor® has the tools and a proven marketing technique to achieve the highest possible price in the shortest amount of time. Over half of those owners who try and sell on their own, do not sell at all or sell at less than current market value.

While you are looking to save money by selling your own house, buyers are looking to save time by coming to me!

The best chance of getting the highest dollar price is by exposing it to the most people – not just those folks who happen to drive by your sign or pickup the local newspaper. Today, there is so much media saturation, that many people do not even read local papers regularly any longer. Do you advertise in the paper? TV? Cable? The local real estate book? The Internet? Flyers? Signs? Open Houses? All of the above? Do you have the time for this? Are you willing to absorb the costs for all of this advertising? Do you have the expertise to create and execute the advertising in a timely, professional manner?

The Facts About Buyers


Most buyers employ the help of a Realtor®. It’s also important to note that Realtors® are far more likely to bring a buyer to see a house that is listed by an agency than one being sold by owner. As a “For Sale By Owner” - you’re probably missing out on the most serious, willing, and able buyers in the marketplace, since we make sure we are working with buyers who are financially qualified. Can you tell a “tirekicker” from a legitimate, qualified buyer?

I regularly have a list of hundreds of current buyers. They receive daily e-mail updates of new and current listings on the market. As a "For Sale By Owner", you would not be featured in this daily update.

Did you know that most of a REALTOR®'s marketing, exposure and promotion of your home is to other Realtors®? Through the Lakeway Area Multiple Listing Service (MLS), your home is put in front of thousands of other agents currently working with legitimate, qualified, willing and able buyers.

Although nearly half of FSBO sellers cite saving the commission as the big reason to go it alone, a home's price is negotiable, and selling at the low end of the range can cancel out any savings. You will also quickly find out that buyers looking for FSBO homes were also looking for a deal.

You are saving all this money and don't have to pay the commission, so they are going to lowball you - But the reality is you are taking time to show the house, and going through the labor and the cost for the advertising. However, buyers think that they have an advantage when buying from a “For Sale By Owner.” They assume that since you are not using a broker and saving on paying a commission fee, they should be able to get your house for less – they see your house as an opportunity to save money.

Are you emotionally prepared to deal with the tire-kickers? Will you be able to handle the insulting low - ball offers and still save the transaction? Many people actually overprice their homes, and in doing so, discourage legitimate buyers.

When the time comes to negotiate a selling price for your home a broker can justify the asking price using market facts, comparative analysis, real estate knowledge, and experience in order to respond to buyer challenges on price.

Advantages of Selling A House On Your Own

  • There is no Brokerage Fee (commission) to be paid.
  • You receive all of the proceeds (less marketing costs). This is, of course, the biggest benefit of selling your own house.

  • You are in total control of the transaction.

  • If mistakes are made, they are your own. There is no one else to make mistakes "for" you.

  • If your equity is low, you may be able to sell your house without having to write a check.

  • You are always available at the home for showings, answering inquiries, etc.

Disadvantages Of Selling A House On Your Own

  • You must rely on your own instincts.

  • All marketing and advertising costs are your own, which can be an expensive proposition.

  • Unless you pay to have your listing included, you will not have access to the MLS - the Multiple Listing Service. You must hunt for buyers one at a time.

  • Without all the tools in hand, you may underprice or overprice the house. Knowing how much your home can be worth is one of the first steps in beginning to market the property.

  • If you are not skilled in negotiation, you may leave money on the table.

  • All of the paperwork, legal forms, etc. are your responsibility and must be handled by you.

  • If you want to give maximum benefit to your efforts, your free time will be somewhat or severely limited.

  • Many buyers believe that if you are selling on your own and not paying a commission, it is they (the buyers) who should get the savings - not you.

  • As you approach negotiations, you must sever emotional ties with your house or you will place yourself at a disadvantage.

  • You must become knowledgeable of legal and financial issues to be most effective.


Contracts, Inspections, Contingencies, Conditions.
Are you ready for all that?

There are significant financial contracts, inspections, contingencies, and special conditions that must be met – you are putting yourself at significant risk and liability by attempting to execute this type of transaction without a professional. Remember, I participate in negotiations like this every day!

Are you fully aware of all liability of seller disclosure of property conditions and hazardous contents? Sellers are finding the do-it-yourself approach increasingly time-consuming and complex, what with showing the house, awaiting financial documents and deciphering a mountain of paperwork that in some states includes disclosure forms for termites, mold and aircraft noise. Many are also reluctant to have random unscreened strangers traipsing through their home.

And in the rare cases in which a seller gets sued for failing to disclose required information — such as the existence of lead-based paint in an older property, which can cause lead poisoning in children — a solo seller won't have an agent to accompany him through the legal process.

Are you equipped to negotiate effectively, face to face? Will a buyer feel comfortable negotiating with you? Often buyers can feel intimidated by negotiating directly with the seller. Also, it’s very difficult to be an objective negotiator with your own home. You have emotional ties to your home and its worth to you personally, which makes negotiations very difficult.

Additionally, owners showing their own homes can be very intimidating to buyers. Buyers don’t want to invade your privacy or criticize your home and offend you. Therefore, they won’t ask the questions that might be most important to them, and that presents problems. For instance, people who want to inspect closets, cupboards and bathroom cabinets might not feel comfortable, especially with owners in the home. They are not put in a comfortable position to be objective in their inspection of your home, or with their questions and concerns.

What are you really saving when you sell your home yourself?


Most people who try to sell their homes themselves, will state “Brokers Welcome” in their ads, fact sheets and flyers. While all commissions are negotiable, sellers often pay in the neighborhood of 3% for that side of the transaction. This means these sellers are willing to give a licensed REALTOR® their 3% commission if they bring a qualified buyer. That leaves a perceived 3% savings - that commission which is paid to the “listing” agent.

In order to save that listing fee, you as the seller will have to:

  • Spend $1,000-$2,000 on advertising, color fact sheets, flyers, postage, signs, and internet presence

  • Take time off from work or spend your personal leisure time showing the house (try to estimate what your time is worth)

  • Trust your ability to negotiate the best deal with a tough buyer or a seasoned professional REALTOR®

Pretty quickly, the perceived savings are drying up. And the selling process is more difficult than it has to be.

Think about it. Is it worth it to save a few hundred dollars? And, in the end, did you really get what your home is worth?

You are always better off staying within your own area of expertise, and using professional specialists in areas of major importance. If you needed major surgery, would you go to medical school in order to take care of it yourself? If you were being sued, would you go to law school to get your degree so you could defend yourself?

This is one of the largest and most important transactions you’ll ever make. Selling your home should not be a "do it yourself" project!

Contact Peggy Smelcer at 423.312.7170 or e-mail info@PeggySmelcer.com