Should Home Sellers Skip Brokers?
When it came time to sell the Los Angeles home where Judy Reidel grew up, she decided there was no one better than herself to market its 1920s charm.
She hoped for a quick sale, even with a $1.4 million asking price — and without using a professional Realtor.
"We feel we can do all the things a selling agent would do, so we're doing it," she said.
With a lot of sweat equity to price it, Reidel had to evaluate the home's features and look up its square footage and lot size. Then she had to advertise, listing her house on one of many for sale by owner Web sites.
Reidel figures she's saving about $70,000 by not using a Realtor.
A recent study conducted in the Midwest may prove Reidel right, reports CBS News correspondent Sandra Hughes.
Economists looking at the Madison, Wis., housing market found homes sold by owner on a local Web site went for $175,068 — about the same amount as those sold by Realtors, at $173,205.
But Realtors insist it's not a nationwide trend. In 2005, the National Association of Realtors did its own survey of home sellers and found realtors boosted home sale prices by 16 percent.
Los Angeles Realtor Sharona Alperin says it's a combination of contacts, negotiating skills and marketing savvy.Hughes Blogs: Selling It Yourself
"We come in with ideas that really, really help generate a higher number as far as price," says Alperin.
But Realtors typically take a 6 percent commission, which can add up to tens of thousands of dollars. So are the savings worth your effort?
Here's what to consider:
Like many homeowners, Reidel is willing to do whatever it takes. But she's selling in the middle of L.A.'s biggest sales slump in 14 years. After six weeks of open houses and an $80,000 price cut, she's had no offers.
"I'm just hoping the right buyer comes along soon," Reidel says.
If not, she may give up and replace her "For Sale By Owner" signs with a Realtor's.