Is it the right time to sell by Owner?

It is a very tricky situation about selling a home by Owner and one that should not be entered into lightly. First of all, selling a home without representation can be a very dramatic experience and a challenging one as well. Of course, selling with some agents can be challenging and dramatic since not all real estate agents are created equal. Nonetheless, what are some of the obstacles that you can expect to face and is it a good time to sell in Raleigh without representation?

The obstacles that For Sale By Owners (FSBOs) face are usually present no matter the market situation. The greatest obstacle that you must face in both good times and bad, is exposure in the marketplace. It is not secret that most Buyer's agents look towards the Multiple Listing Service (MLS) when they begin working with a client. This search will yield many possible homes that the agent will then show the client. Only after all of these options are explored will the typical agent look towards homes sold by owners. It is not that agents do not wish to give these homes credance or show them, but rather the difficulty in searching and finding these homes since there is not a single database with all FSBOs. Despite what some FSBOs feel, it is not a vindictive move by licensed agents, but one born out of time management. Another way for the client to notice FSBOs is if they drive by the home while looking at other homes.

This leads to yet another obstacle for the do-it-yourselfer, availability. It is not uncommon for me to show a home with less than an hour's notice. If in fact, you are showing homes in the neighborhood and you spot a FSBO that interest your client, chances are you will either not be able to get the seller on the phone or the seller cannot make it home from work to show the home in a timey manner(timely manner meaning on the buyer's timetable). Remember, the client is the buyer/customer and if the customer cannot see a home when they are available, then you might as well take the sign out of the yard because you are out-of-business. To sell your home you MUST be on the buyer's schedule.

To add to this obstacle of visability and availability, exposure is paramount to selling for the highest possible price. Without proper exposure in the marketplace, a home will continue to be reduced in price until someone just happens to see the home and purchases it. The law of suppy and demand plays a major role in homes selling for full price. If the suppy of potential buyers is strong, then the demand for the home will be greater, resulting in a higher selling price.

Another obstacle is the commission. Many potential buyers are either not willing to pay the buyer's agent commission, or are not able to do so. FSBOs that are not willing to pay the buyer's agent commission are asking to have a home that is on the market indeterminately. For instance, I recently had a buyer who was interested in a FSBO, but the seller was not willing to work with me, even if my buyer was willing to pay my commission. This put a bad taste in my buyer's mouth and he walked away from the home without even considering it and bought a home down the street from this one. The seller could have sold his home had he been more open to working with a buyer's agent. To sell your home, you need to work on a professional level and take out your personal emotions.

These are just the major obstacles facing unrepresented sellers in the Triangle, but despite these, is it a good time to sell by yourself? The number one answer in the real estate business is "It depends", and this is the case here. It really depends upon your ability to remove as many obstacles that would prevent you from selling your home quickly and your location. The old adage about real estate is the three major factors to sell your home is location, location, and location. This is very true, but even more so for unrepresented sellers. You could have poor visability, availability and exposure and still sell your home quickly if you are in a hot location. Raleigh in general is a very popular and hot market as one of the few markets in the U.S that is expected to have positive appreciation in 2008, but this is not enough. You must be in the most highly sought after sub-area of the Triangle to expect to sell quickly.

What are these areas? The price points that are selling quickly are $200,000 to $300,000. The next popular price point is $300,000 to $400,000. The most popular areas in the Triangle are North Hills area and some areas of Cary with the better schools such as Davis Drive.

In closing, you can attempt to sell your home by yourself and you may get lucky and sell it quickly for a high amount. My advice has always been "to knock yourself out and try it, but if it fails, call me". Some of the people who have spoken with me and took my advice were successful and sold there home, but many have not. There are no guarantees in the real estate business when it comes to selling.