How to Sell Your Home for Sale by Owner

Many homeowners who are planning to sell their homes want to avoid using a Realtor in order to save on brokerage fees, or commissions paid to Realtors. These fees vary, and are not regulated, so they can run in the tens of thousands of dollars. For many, the services provided by a Realtor are well worth it, particularly in a market with lots of houses for sale. However there are many who still want to go it alone, and for them, For Sale By Owner (FSBO) is the way to go. If you feel like you are in a good place to sell FSBO, there are a few important things to keep in mind.

Know the Value of Your Home

Really know what your home is worth-not what you want to get for it, or what you need to sell it for to cover your bills. Find out what similar homes in your neighborhood have sold for recently. Sites like Trulia and Zillow allow you to see what the estimated value of your home is, as well as similar homes.

Track Sales in Your Neighborhood

It's important to know not only what your home is worth, but how long homes in your neighborhood stay on the market before they sell. Has the "For Sale" sign been on the lawn across the street so long that it's become part of the landscaping? A lot of homes for sale for a long period of time are a good indicator that you might be in this for a while.

Make Your Home Sale-Ready

Get a leg up on the competition by making sure your home is in top form to sell. Get a home inspection before putting your house on the market, so you can fix any major issues. Use some of the money you're saving by not using a Realtor to sell your home to spruce up your house, hire a cleaning service and repair anything that might turn off a buyer. Use some money on marketing and advertising too-flyers, online advertising and open houses are essentials for selling your home.

Prepare Yourself to Sell

When you do get an offer, your work really begins. This is one area that takes a lot of research and skill to be able to do on your own in order to not lose money. Should you get earnest money from your buyer? Is your buyer prequalified? Will you be negotiating with the buyer or his agent? Do either of you need to write any contingency clauses into your contracts? What about legal issues-equal housing laws, real estate law? Do your homework. For Sale By Owner.com offers a lot of advice, as well as a complete guide to buying and selling your home that's well worth looking into.

Consider a Compromise

Find a "limited service" listing opportunity. This is a service that, for a flat fee, will allow your home to be listed on the Multiple Listing Service (MLS), which is the National Association of Realtors' computerized list of homes for sale, and the main tool used by Realtors to find homes for sale and to sell homes. Some services will list your home on other websites, such as Realtor.com. This gives you some of the same exposure you'd get with a Realtor, but without the commission fees.

Decide Carefully

Selling a home is a difficult process, especially in today's market. Consider your options carefully before deciding which avenue-Realtor or FSBO-is right for you.