[ajburlingame]

My husband and I have been talking about moving back to our home town (only 15 miles away) prior to our children going to school. We are wanting to try to sell our house this summer if possible. I thought about trying to put the house up "For Sale By Owner". We live on a road that would get some good drive by traffic to put a sign out front and I put an add in the local newspaper. Thinking about having an open house mid May. I have done a lot of reading on the things to do around your house to get it prepared to sell and etc. I also have a friend that works as a paralegal at a local lawyers office who said that they do all of the paperwork for the sale of a home for around $650.00 which is a huge cost savings compared to a real estate agent taking 6%. We really don't have hardly any equity in the home so any money that we can save would be great. Does anyone have any words of wisdom to share with me on this process?

[mcmama]

It depends really on where you are if you save money by going fsbo. An agent's job is to receive and negotiate offers and to advise you as to what is a good offer, as well as market the house. Do you have anyone in mind who can verify the mortgage preapprovals, or check out if the buyer is not going to leave you mid contract? If an attorney does that, it is going to cost more than $650. In some areas, (like mine, northern nj) you need an attorney no matter what, to review the contract, set up the escrow, receive the deposit, run the title search, and compile all documents for closing, and make the hud statement. In other areas, the agent and the title company pretty much do that. So be sure you know what the lawyer will do, and what it will cost. And sometimes, lawyers who are litigators and only do real estate on the side can negotiate a perfectly good sale to death.

YOu need to check what your marketing costs for advertising will be, how you will verify the buyers, and plan for showings. I am no longer active as a realtor, but when I was, my nightmare was the seller who would show the house themselves - they often gave information and got too friendly, and it came back to bite them. The second nightmare was the seller who took the highest offer even if it was not the best, or had a weak "prequal" for the mortgage. Those contracts usually do not make it to closing, and wind up costing money in delays and legal fees.

COmmissions are negotiable, and depending on your area, they may vary from 6%. Most full service realtors in my area do not go below 4.5%, because sharing the commission with a buyers agent can slice it up too much - and if you list a house with too low a commission to a buyers agent, it will not be high on the list for showings, although an ethical agent will show it if necessary.

Some areas allow for realtors to unbundle services where you pick and choose for a flat fee- that may work for you, but be sure you know what you are getting.

A fsbo ad or sign is often an invitation for realtors to call you - they want the listing, but they also want the sale. They will call even if you say no agents - because they know that statistically, most fsbos eventually list with a real estate broker. Decide if you will cooperate with buyers agents and pay them a fee if they sell. Some buyer agents get paid by the buyers - most do not. Some get paid on both sides, depending on how they are regulated and where. Again, this is negotiable. If you sign a cooperating agreement with a buyers agent, make sure you understand what you are signing and what you are obligated for.

If you fsbo, but have an agent or brokerage in mind for "what if", don't wait too long in the spring market if things are not working out for you doing it on your own. Time is money in the spring market.

BTW, I am about to sell my home - and I have enough headaches, I am paying a commission to another agent who is a good friend, although I could list it myself or even fsbo it on my own. I need to move by the end of the summer, so this is the best way for me. And, two heads are better than one!