Selling a Home: Should You Use a Realtor or Go it Alone?

By Michele Blandino

As the real estate market continues its upward climb, many people are taking advantage of the opportunity to sell their homes at a rather handsome profit. While this is particularly true of "empty-nesters" who wish to downsize, it also applies to those who wish to "trade-up" to a larger home.

And, while the dream of moving on to a new home is appealing, the idea of having to go through the process of selling their current home is not. In addition to all the work that is usually required to get a house ready to show, many people also wrestle with the question of whether or not to utilize the services of a real estate agent.

At one time, the conventional wisdom was that a real estate agent was an essential part of the process. In recent years however, the escalating prices of houses combined with the obligatory 6% commission charged by most realtors have sellers wondering if they wouldn't be better off taking care of the job themselves. Indeed, for a home selling at $500,000, the realtor's cut comes to $30,000 - quite a hefty sum, especially for homes that sell quickly and with minimal effort.

So, under what circumstances should you consider acting as your own real estate agent? To help in the decision making process, here are a few questions you should ask:

• How much time do you have to devote to the selling process? One of the key benefits to employing the services of a realtor is that they will be charged with the responsibility to showing your home. This is particularly valuable to those whose jobs may keep them away from home for long hours and those whose weekends are dominated by kids' activities. The bottom line is this, if you aren't willing to devote several weeks to showing your home, yet are particularly anxious to sell, you are probably better off with a realtor. If, on the other hand, you are generally home during the day and can accommodate potential buyers, then you might want to consider going it alone.
• How much do you know about the local real estate market? One of the primary functions of the realtor is to assist you in selecting the right selling price for your home. Given the access they have to information regarding sales of similar properties in your neighborhood, this is a task that they can usually complete with little effort. However, there are also a growing number of Internet sites that provide the same type of information which makes it easier than ever for homeowners to complete the valuation themselves. Again, this really comes down to the amount of time you have to devote to the sale of your home.
• What about advertising costs? Part of the commission you pay to a realtor will be used to advertise your home in local newspapers, home magazines and Web sites. Should you choose to sell your home on your own, you will not only need to absorb these costs, you will need to make arrangements to have the advertisements published. If you are not in a tremendous hurry to sell your home, you can simply place a "For Sale by Owner" sign in your front yard and wait for word to spread. However, if time is of the essence, a more aggressive advertising plan will be required.
• Taking care of the little details. Once an agreement for the sale of your home has been reached, there is still the matter of contract reviews, home inspections, and closing procedures. If you have the ability to multi-task, then all of this isn't too difficult. If, however, you have your hands full with other matters, you might prefer to delegate the responsibility for completing these tasks to a realtor.

A final word: while in many states the realtor commissions are technically negotiable, the standard fee is 6%. You can also consider one of the increasing number of realtors who offer their services at a reduced rate. The bottom line is that while selling a home on your home may be time consuming, it is not impossible. It's up to you to decide how much time and effort you will be able to devote to the job.