Even if you use an agent or appraiser to determine your home's value, you can still pick a price and sell on your own -- "for sale by owner" or FSBO.
You'll avoid agent commission if you sell on your own, and dodge the risk of wasting money on a lackluster agent. Nancy Spearrin, a seller from Solon, Maine, decided to sell on her own after two bad experiences with agents. When she and her husband first listed in 2007, their first agent told them to list their 2-home property at $249,000. After they signed a 3-month contract, he started dropping the ball, waiting three weeks into the contract to even list the property. After no showings and a lackluster open house, they took their home off the market.
The Spearrins tried again in 2008 with a different agent, this time with even worse results. "When the agent finally listed our house on his Web site for $209,000 three weeks into the contract, all he put in the description was 'These homes share a septic system!!' No listing of the landscaping, pool, custom kitchen, nothing!"
Frustrated, they ended their contract and decided to go it alone. "I am convinced that I am more motivated and willing to work at selling it than any agent we have worked with," says Spearrin. They researched what homes had sold for in the area over the last year, and settled on $189,000 for both their homes. The homes are still listed on Craigslist.org, Zillow.com and Postlets.com.
But despite their troubles with agents, Nancy admits it's frustrating to price and sell on your own. "It is very hard to find comparable homes in our area, since we have the unique fortune of having 2 well-maintained homes on one in-town lot." She also says it's difficult to keep her home in "show shape" and deal with no-show viewings.
Selling on your own can be especially challenging in a down market. "In a better market, they might have a chance, but sellers are often clueless about pricing, marketing tools and presenting," says Sarasohn. "When I sold my apartment, I hired a broker. I were a doctor, I wouldn't attempt to self-diagnose myself if I were sick -- I would go to another doctor. It's the same thing."
FSBOs also don't get noticed as much, says DeMolen, because most buyers work with a Realtor and mostly visit homes listed in the Multiple Listing Service (MLS). That means even if you price your home with the market, it might not get much foot traffic -- and even fewer offers.
The bottom line: Agents get a commission for a reason: Selling is a lot of work. Get pricing advice from several experts, and be ready to work for your savings on commission if you go it alone.