Homeowners Hold Yard Sale;
Sell House Along With Knickknacks

When Steve Bevens, 60, held a fall yard sale with his wife, Patty, at his home in Montgomery Township, N.J., nearly six years ago, he expected shoppers to make offers on his used bicycles, cameras and furniture. When a bid was placed on his house, which wasn't for sale, he was more than a little surprised.

The couple had spoken casually about downsizing from their three-bedroom ranch home, since property taxes on the home were rising and their children were grown and out of the house, but they hadn't done much about it.

A neighbor who visited the yard sale rang his doorbell later that evening and explained that she had told an acquaintance about the house, and he was interested. Mr. Bevens told the neighbor she could pass along his phone number. His phone rang less than 30 minutes later.

The interested party was a local contractor who came to the house the next day. Mr. Bevens says the contractor took photos of the home and measured its dimensions. Two weeks later, he formally expressed an interest in purchasing it. Mr. Bevens told the contractor that he and his wife weren't in a hurry to move, saying the earliest they could was by the end of January, about four months away.

Not sure of the value of his property, Mr. Bevens suggested meeting up in a few weeks to discuss a price. In the interim, he reached out to friends in the real-estate industry and arranged a free home assessment to determine an asking price. 

He concluded that with a real-estate agent, the house would sell for approximately $325,000 and without one, he could sell it for less -- $300,000 -- and realize approximately the same profit, since he wouldn't be paying a real-estate commission.

The contractor accepted the $300,000 price tag on the spot and didn't try to negotiate, Mr. Bevens says. About three weeks later, the homeowner had a lawyer draft up a contract and accepted a $500 "good faith check" from the contractor. He trusted the buyer, since he came recommended, did his homework and was very serious about moving, Mr. Bevens says.

While Mr. Bevens's buyer was a serious one, Julie O'Donnell, a real-estate attorney in Hoboken, N.J., doesn't recommend accepting such a low deposit in most cases.  Home sellers should ask for a 10% down payment, or at least 3% to 5% -- buyers who put down a small amount like $1,000 may find it easier to walk away, she says.

Although the buyer initially waived his right to a home inspection, his mortgage company mandated one. Three weeks before closing the home was inspected and failed radon and septic inspections. Fixing the radon levels cost approximately $500. The septic job was much costlier -- $30,000 -- which Steve and his wife put into an escrow account.

About a month and a half after agreeing to sell their home, the couple found a townhouse they liked in the Yardley, Pa., area for $198,500 and placed a 35% down payment using some of the proceeds from their home sale. In February 2002, they moved in.  

Mr. Bevens admits that the manner in which he sold was stressful at times because he was pressured to find a new place and uproot his belongings quickly. But, if he could sell in such a way again, he would, he says.

"It eliminates real-estate agents bringing people through the house, keeping it clean, baking apple pies and the usual tricks to make it seem homey," he says. "I certainly don't think the real-estate gods will be that kind again."

-- Ms. Mattioli is an interactive news assistant at RealEstateJournal.com.

Email your comments to dana.mattioli@wsj.com.