Can I Sell My Own Home?

You can sell your own home.

Homeowners ready to sell their dwellings could save thousands on commission fees by doing it themselves -- called a "for sale by owner" or FSBO. Each year, as many as 20 percent of homeowners go the FSBO route, according to CNN. While forgoing a real estate agent may save you on commission, it could end up costing you far more if you cannot adequately price and present the house on your own.

Misconception

As long as you follow the letter of the law, such as disclosing information about the property and documentating the sale of the property, you can sell your own home. FSBO property owners, however, often contract some services they can do themselves or want a professional, such as a lawyer, to draft the contract or help presenting or properly pricing the home.

Disadvantage

A real estate agent might be able to get a higher price for your home that negates their commission or even offers a greater return than if you decided to do it on your own. Real estate is a local game, and a professional can likely avoid some common mistakes that could get a regular person in trouble, such as declaring features the house does not have or using language that could be illegal in the municipality

Considerations

Eliminating the commission to the real estate agent is not "free" money, because you must spend hours showing the property to potential buyers and sprucing up the place to make it presentable. In a February 2004 article in "The Philadelphia Enquirer," Jeff Block, a real estate agent in Philadelphia, compares selling your own home to growing your own food. You save money, but probably could have spent that time doing something that offers a better return.

Tip

The best homes for a FSBO sale are those located in a popular area, priced reasonably the average resident, and of a home type that not many other people are trying to sell. If you decide to sell your own home, Ray Martin suggests in a CBS News report that you follow the latest trends from the National Association of Realtors. Also, put your home for sale online -- you can do this for free on online classifieds sites. The next most common way to sell a FSBO home is putting up a yard sign.

References

• "The Wall Street Journal"; Mistakes to Avoid When Selling Your Own Home; Perri Capell; 2003
• CNN Money: Homeowners: Sell it Yourself; Josh Hyatt; 2007
• "U.S. News and World Report"; The Drawbacks of Selling Your Own House; Luke Mullins; 2008
• "The Philadelphia Inquirer"; Agents Offer Perspectives on Selling Your Own Home; Al Heavens; 2011
• CBS News: Selling Your Home On Your Own; Ray Martin; 2008