Should Home Sellers Skip Brokers?

Selling Your Own Home Has Risks And Benefits

(CBS)  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.

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Hughes Blogs: Selling It Yourself

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Los Angeles Realtor Sharona Alperin says it's a combination of contacts, negotiating skills and marketing savvy.

"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:

Price: Can you negotiate the best price for you home?

Property showings: Do you have the time?

Advertising costs: They can add up if your house doesn't sell.

The sale: You'll need to handle the closing requirements like inspections, appraisals and contract terms.

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.

© MMVII, CBS Interactive Inc. All Rights Reserved.

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Add a Comment

by kommandbunke July 29, 2007 5:07 AM EDT

Realtors in most cases have a glorious sense of entitlement for doing nothing. Any jackass can put something on a multiple locator service, sell it and then ask for 3% . . . If you have a good product you absolutely, positively should NOT use a realtor. The only time someone needs a realtor is when they or their family are overseas or out of state and need to move. Then the 3% will be worth the finding, showing and obtaining a nice house for a busy family or person who does not have the time to handle it. I am a builder and everything I sell is FSBO. I also don't give more than 1% to realtors who want my product I build. I make nice stuff and it's them that should be paying ME to sell it to them. I offer 10 year warranties and lots of upgrades to my buyers & they appreciate it. So, in closing, LONG LIVE the FSBO!!

Reply to this comment

by lv2travel July 28, 2007 7:29 PM EDT

YOU go Girl.....good luck

Reply to this comment

by rushlimpdrug July 28, 2007 4:24 PM EDT

I am not a major fan of realtors; generally they are slightly lower than used car salespersons. . . . . .
Posted by LawyerTom1

Coming from a lawyer that would be a compliment.
Lawyers are much lower than scum.
Have a nice day.

Reply to this comment

by jetranger7 July 28, 2007 1:53 PM EDT

Well, in the year - 2000- I bought my 1st house without using a realtor, bought it straight from the owner for a very reasonable amount here in the midwest area for $95,000 ! Everything went fine, with the transaction too ! I still live in my house, am perfectly happy with it, altho the acre and a half is a bit much to mow at times, house is a 3300 SQFT house All brick Ranch with a double attached garage, with 2 ponds out back, and close to all major shopping and several schools too ! and it sits up high on a hill too, and has a real wood burning fire place, central air. I'll probably live here till I retire ! I found my house by accident while driving around, I seen this cardboard sign on a telephone pole in black magic marker said, House 4 Sale, so I seen it liked it, bought it , never did use a realtor ! :):):)

Reply to this comment

by bajatexas July 28, 2007 1:10 PM EDT

I recently discovered that I can save a boatload of money if I do my own open heart surgery as opposed to having a doctor do it for me.

The lady in this story is failing. She's already dropped the price of her home $80K and it still hasn't sold. She's paid to advertise it and spent time following up leads. Everybody who's interested has seen it online and now they're wondering why it hasn't sold. She may get a buyer, but I guarantee he or she will be looking for a deal. As another poster commented, she may not be aware of the legal ramifications of her representations.

There are a lot of lousy Realtors out there, but compared to the job this lady's doing, they're all superstars.

Reply to this comment

by jimfinster July 28, 2007 3:05 AM EDT

LawyerTom1:

Your post really reinforces the stereotype of the greedy assshole lawyer. Assuming you really are a lawyer, of course.

Reply to this comment

by lawyertom1 July 27, 2007 11:20 PM EDT

I am not a major fan of realtors; generally they are slightly lower than used car salespersons. That being said, I must admit that when I sold my house last month, my realtor performed miracles, coordinating the staging, handling the publicity with aplomb, and easily getting me $300K more than market conditions would have indicated. Also, she kept tabs on the screwups by the title and escrow companies. I will admit she was a rare jewel amongst all the dross, and thus well worth the money. I will also admit that I talked to many other realtors, and I would not have hired one of them even with a gun to my head. So, as always, look for experience and quality. If you can't find them, then chance it and try it yourself. But, if you do, read everything you can about the law, selling, staging etc., because otherwise you will mess it up. Also, remember, you have to disclose defects and nearby nuisances. If you try and hide stuff, then guys like me will have a ball suing you and taking everything you are worth for your attempt at fraud. So, have a nice day.

Reply to this comment

by stepnenutah July 27, 2007 11:04 PM EDT

Something overlooked in the story is the fact that Realtors are trained in the state and local laws (at least in Utah) something that most for sale by owners don't have a clue about. sure many may turn out o.k. but for my money it's not worth the financial gamble. I guess if you go to court you could always represent yourself there too.

Reply to this comment

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[kommandbunke]

Realtors in most cases have a glorious sense of entitlement for doing nothing. Any jackass can put something on a multiple locator service, sell it and then ask for 3% . . . If you have a good product you absolutely, positively should NOT use a realtor. The only time someone needs a realtor is when they or their family are overseas or out of state and need to move. Then the 3% will be worth the finding, showing and obtaining a nice house for a busy family or person who does not have the time to handle it. I am a builder and everything I sell is FSBO. I also don't give more than 1% to realtors who want my product I build. I make nice stuff and it's them that should be paying ME to sell it to them. I offer 10 year warranties and lots of upgrades to my buyers & they appreciate it. So, in closing, LONG LIVE the FSBO!!

[lv2travel]

YOU go Girl.....good luck

[rushlimpdrug]

I am not a major fan of realtors; generally they are slightly lower than used car salespersons. . . . . .
Posted by LawyerTom1

Coming from a lawyer that would be a compliment.
Lawyers are much lower than scum.
Have a nice day.

[jetranger7]

Well, in the year - 2000- I bought my 1st house without using a realtor, bought it straight from the owner for a very reasonable amount here in the midwest area for $95,000 ! Everything went fine, with the transaction too ! I still live in my house, am perfectly happy with it, altho the acre and a half is a bit much to mow at times, house is a 3300 SQFT house All brick Ranch with a double attached garage, with 2 ponds out back, and close to all major shopping and several schools too ! and it sits up high on a hill too, and has a real wood burning fire place, central air. I'll probably live here till I retire ! I found my house by accident while driving around, I seen this cardboard sign on a telephone pole in black magic marker said, House 4 Sale, so I seen it liked it, bought it , never did use a realtor ! :):):)

[bajatexas]

I recently discovered that I can save a boatload of money if I do my own open heart surgery as opposed to having a doctor do it for me.

The lady in this story is failing. She's already dropped the price of her home $80K and it still hasn't sold. She's paid to advertise it and spent time following up leads. Everybody who's interested has seen it online and now they're wondering why it hasn't sold. She may get a buyer, but I guarantee he or she will be looking for a deal. As another poster commented, she may not be aware of the legal ramifications of her representations.

There are a lot of lousy Realtors out there, but compared to the job this lady's doing, they're all superstars.

[jimfinster]

LawyerTom1:

Your post really reinforces the stereotype of the greedy assshole lawyer. Assuming you really are a lawyer, of course.

[lawyertom1]

I am not a major fan of realtors; generally they are slightly lower than used car salespersons. That being said, I must admit that when I sold my house last month, my realtor performed miracles, coordinating the staging, handling the publicity with aplomb, and easily getting me $300K more than market conditions would have indicated. Also, she kept tabs on the screwups by the title and escrow companies. I will admit she was a rare jewel amongst all the dross, and thus well worth the money. I will also admit that I talked to many other realtors, and I would not have hired one of them even with a gun to my head. So, as always, look for experience and quality. If you can't find them, then chance it and try it yourself. But, if you do, read everything you can about the law, selling, staging etc., because otherwise you will mess it up. Also, remember, you have to disclose defects and nearby nuisances. If you try and hide stuff, then guys like me will have a ball suing you and taking everything you are worth for your attempt at fraud. So, have a nice day.

[stepnenutah]

Something overlooked in the story is the fact that Realtors are trained in the state and local laws (at least in Utah) something that most for sale by owners don't have a clue about. sure many may turn out o.k. but for my money it's not worth the financial gamble. I guess if you go to court you could always represent yourself there too.