Quiz: Are You Ready
To Sell on Your Own?

Can you sell your home by yourself?

People from all walks of life, some with little knowledge of real estate, do it every day. The real question is not can you do it, but can you do it easily, quickly and correctly?

There are lots of fears and concerns, some justified, some not, among homeowners who are considering selling FSBO -- the acronym that stands for "For Sale By Owner." Here are just a few of the concerns that I've heard:

• I can't understand the paperwork.
• I'm no good at selling.
• How do I handle disclosures?
• I don't have the time.
• It's just too hard.
• It's dangerous to invite strangers into your house.

Basically, they are: "I don't know how" and "I'm afraid."

You Can Do It

If you want to sell your home as an owner by yourself, you can do it. For every argument against it, there are solid reasons why it will work. Let's consider the six concerns previously noted:

1. Paperwork. You can always find someone to do the paperwork for you. This is not to say they'll do it for free; however, for a reasonable fee, you can hire attorneys or fee-for-service agents and discount brokers.

2. Salesmanship. While some people seem to be "born" salespeople, most of us feel awkward or embarrassed when trying to sell something. We feel we could never pressure someone into buying our house. The truth, however, is that good salespeople don't use pressure. They simply present the product (in this case a house) in the best light and let the buyers sell themselves.

3. Disclosure statements. Today, in almost every home sale, the seller must disclose to the buyer any defects in the property. You must put together a disclosure statement whether or not you're working with an agent, so there's no extra time spent here.

4. Time. Most people think that selling by owner means spending more time. Actually, if you do it correctly, you can save time in most markets. That's right, a FSBO can move more quickly than a listed property.

5. Too hard. It's all a matter of perspective. How hard is it not to sell at all? How hard is it to pay a huge commission to an agent? Jumping through the hoops required to sell by yourself can seem downright easy when compared to those two difficulties.

6. Strangers. No one likes strangers in the house. But no matter which way you sell, you're going to have to let strangers see the place. You can minimize the risk by showing the property only at reasonable hours and only after qualifying the prospective buyers on the phone. Also have someone with you for the appointment.

Should You Sell Your Home by Yourself?

As you see, there are reasonable answers to the objections of selling a home by owner. Plus, there are a number of solid advantages to doing so:

Advantages of Selling by Owner

1. You'll save money. The reason most people want to sell FSBO is to save the amount they would have to pay on a commission to an agent.

2. You'll preserve your equity. Remember, commission is paid out of the equity, even though it's calculated on the sales price. Whether you have a lot of equity or a little, why spend it on commission? Save your equity -- sell FSBO.

3. You can get a quicker sale. While most people want to save money by selling by owner, many others simply want a quicker sale. They want to get out of the property as rapidly as possible. One way to do this is to give an amount equal to all (or a portion) of the commission to the buyer.

If all the homes like yours are selling for $200,000, instead of listing at that price and paying, for example, a $12,000 commission, simply sell the house yourself and reduce the price by $12,000 (or less). Instead of paying a commission to an agent, you're paying an equal amount to the buyer. It comes out the same to you.

4. You can get started investing in real estate. Many well-off real-estate investors got their start by selling their own homes years ago. It taught them how real-estate deals are handled. Nothing builds confidence and knowledge more than successfully selling by yourself.

Why Doesn't Everyone Sell FSBO?

Before you get the impression that selling a home is as easy as falling off a log, rest assured, it's not. If it were, there wouldn't be any agents. Everyone would simply sell their own homes.

Given all the reasons to sell by owner, the vast majority of people still fail to do so. A reasonable person has to ask, "Why do so many people bypass this alternative and directly list their homes?"

First, there's simply the matter of nerve. While few of us would hesitate to hold a garage sale to sell almost anything from used clothing to an old piano, most of us are nonetheless intimidated by the apparently daunting task of selling our own homes. Let's face it, you have to be just a little bit gutsy to sell by owner.

Another reason for not selling FSBO is the time and effort involved. Many people lead busy, hectic lives and simply don't have the time or energy to devote to selling their homes by themselves.

If you're in this group, you're the type who would rather hire a gardener than mow the lawn, take your car to a mechanic rather than change the oil yourself, or call a plumber when you have a leaky faucet rather than buy a washer and fix it.

The Reversible Decision

If you're not sure whether you'd like to sell FSBO, give it a trial period. Before you list, give yourself a week, a month, two months (probably the most reasonable time period).

Set a deadline, and until that deadline expires do everything you possibly can to sell by owner. Then, if you still haven't sold the house, you can always list it and have an agent sell it for you.

-- Mr. Irwin is a real-estate broker and consultant and author of several books about buying and selling real estate. This article has been excerpted from his latest, "The For Sale By Owner Kit" (Dearborn, 2005).

Email your comments to rjeditor@dowjones.com.