Can I STILL Sell Without a Realtor?

We’ve been in a slow (some would say, “non-existent”) real estate market for four years now.  Can you believe it, this mess started back in the second half of 2006?  Sellers are understandably discouraged.  Many are asking if it’s still possible to sell as a FSBO (For Sale By Owner) seller.

Yes, it does make sense to sell as a FSBO.  That is if you are a person for whom it ever makes sense.  By that, I mean a person who is equipped by education, temperament, and experience.  People who sell their own real estate successfully tend to have some knowledge of the sales process, have been through the experience of buying and selling before, are generally business savvy, take personal responsibility, can put some time and money into the project, and aren’t earning too much money.

I’ll bet I know what you’re thinking at this point.  You’re thinking something like, “It was making sense until the part about earning too much money.  How in the Sam Hill can anyone make too much money?”  Right?

Well, it you’re earning more doing whatever you normally do for a living than you’d pay a realtor to sell your property, aren’t you better off financially to just “do your thing,” and hire a realtor to sell your property?

Whether it’s a cold market or a hot market, the principals of selling real estate stay the same.  The difference is that you have to do a lot more of each thing in a cold market.  This market is slow, but sales are happening.   So what are the things you have to do a lot of?

The property needs to look appealing.  It needs to be priced right.  It needs to be readily available for showing.  And information about the fact that it’s FOR SALE and what it’s like needs to be in so many places that the right person is bound to see it.

Sellers need to pace themselves.  They need to be constantly vigilant to be sure things are still looking good, the price is still right, and they have all their marketing tools up to date (new price?) and in place.  Sellers need to employ every marketing tool they can think of and afford.  Have brain storming sessions on this topic with people whose ideas you admire.  Be sure your signs are very visible.  Have an internet presence with many pictures.  Place classified ads in newspapers and newsletters.  Put ads on bulletin boards.  Deliver flyers to neighbors.  Have brochures at the curb with interior photos.  Be persistent and consistent.

Keep up with prices in your neighborhood.  Every time a house sells, find out what it sold for.  It’s sad and sometimes painful, but buyers don’t care what you need to get, or want to get, from the sale of your property.  They want to know what’s the lowest price they can pay, and they estimate this by looking at recent sales.  Besides, even if someone were willing to pay too much (not likely in today’s market), their lender would send an appraiser out before committing to a loan.

Now, a word to the wise.  Don’t do everything one time and just sit on it.  Do everything the first time, and if you don’t get showings after all your marketing tools have been in place a few weeks, revisit everything.  Make any adjustments you need to.  Do you need to add more marketing outlets?  Reduce your price?  Whatever it is, do it.

Go through this process every few weeks until you start to get showings.  Once you get showings, a sale is apt to follow.

It takes real work to sell real estate in a slow market.  Someone is going to earn a commission.  Why not earn it yourself?

Raynor James
July 2010