The posting below is a copy of an article published in Boca/Delray Life Magazine in April of 2006.

Most people in the real estate industry refer to this as For Sale by Owner or FSBO (fizzbow). Many consumers fed-up with high commissions start out by trying to sell on their own. Although on the surface this seems like a good idea you may want to consider some of the facts and information presented in this article before you make the decision. Many such home sellers soon find that the task they’ve undertaken can indeed prove to be more daunting, time consuming and challenging than originally anticipated. The second discovery is that in the process of having made the decision to ‘go it alone,’ FSBO sellers often find that they’ve simultaneously eclipsed themselves from ready-access to the specific professional guidance-and-expertise that ONLY a professional licensed real estate broker is really in a position to offer! Guidance and expertise that can often prove to be invaluable.A recent survey shows that the median home sales price for sellers who use an agent is 16% higher than those who do not. Even if you were to pay a 5 or 6% commission you’d still be ahead, but in today’s market there are other lower cost options. Do your homework well and you could benefit from the best of both worlds.

This survey also shows that there is a downtrend in FSBO’s market share. The record was 20% in 1987 and figures for 2005 show this percentage at 13%. An interesting side note is that 39% of those FSBO transactions were between parties who knew each other in advance. A final note, it usually takes longer to sell on your own, so if you have a specific timeframe to sell be sure to factor this in.

Obviously, there are benefits to using a professional. It’s just common sense economics, prices are determined by supply and demand. The more exposure a home has the more demand may be generated which means a higher price. Chances are if two or more people are interested in your home you’ll get a higher price than if only one were interested.

A professional agent can provide aid ranging from setting the best asking price for your home and preparing it for showings, to setting sales-strategies and extending marketing counsel, to providing brochures/flyers and virtual tours, to supplying assistance with negotiations and contracts (a professional can help you by advising, explaining, recommending & negotiating the best possible terms, conditions and price), to providing help with the required seller disclosures (disclosures that will save you from legal liability down the road) and finally, aid in coordinating all the tasks up to and including the closing.

Some other interesting facts from the survey are that 77% of home buyers use the internet to search for a home. Most of the searches are through Realtor.com, other MLS - Multiple Listing Service web sites, real estate company and real estate agent web sites. Newspaper websites accounted for a much smaller percentage.

In an effort to save on commissions, make sure you don’t end up short changing yourself. Listing your home on the MLS – Multiple Listing Service with an agent is still the best way to sell your home. However, with changes in the real estate industry there are now several options available to list your home from limited service discounters to full service providers as well as options in between. Options such as fee for service where consumers are free to pick and choose the services they require from a menu of services.

(Please note that all aspects of this subject cannot be addressed in such a short article. Do your homework and seek the advice of a professional.)

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