For many, selling as a "For Sale By Owner", or FSBO, is the only way to sell real estate. It is estimated that over 20% of the properties sold in America are sold without the use, involvement or help of a Realtor. Many believe these estimates to be overly conservative, and with good reason, For Sale By Owner signs are becoming more common in all cities, towns and neighborhoods.

The reasons for selling privately are as diverse as the people selling, but in most case two reasons stand above the rest. First, savvy homeowners are not willing to give away a substantial amount of their hard earned home equity to a real estate agent in the form of a commission. An average home in Canada or United States sells for about $250,000 and that garners the agent a fat commission of $12,500 or 5% of the entire sale. Few can afford the luxury of losing that much money. In fact studies indicate that hiring a real estate is the single most expensive form of representation, above hiring an attorney or any other skilled professional. Next, most homeowners want to be in control of the process of selling, including the process of scheduling viewings, and conducting showings. These homeowners don't want to be pressured by pushy agents who are hungry to get a commission.

Selling privately involves a fair amount of work and commitment on the part of the homeowner. As a FSBO, you're going to spend about 10 hours a week attending to your sale. On the other hand, you would spend about the same amount of time dealing with a Realtor and the real office. So in the end, it doesn't require any more time to sell privately than it does when you're listing with a real estate agent.

In a sale conducted by a For Sale By Owner, the homeowner is personally responsible for dealing with potential buyers. The homeowner must place an ad on ForSaleByOwner-Max.com to advertise their property, install a high quality yard sign indicating that the property is on the market, and they must also answer telephone inquiries from interested buyers, and schedule subsequent viewing appointments. Naturally once a buyer has made a viewing appointment, the homeowner is in charge of showing them the property, and if they proceed to the next step and place an Offer to Purchase, then the homeowner is expected to negotiate the terms of that agreement directly with them as well. It all sounds more complicated than it actually is, and with the help of good real estate lawyer, the whole process is basically "Show and Sell".

Many wonder if it's worth the extra effort. Some simple mathematics will confirm that it is worth the effort. For example, if you're selling a $250,000 property then you should expect to save about $12,500 in commission. If the property takes 6 months to sell, although most take less than 2 months even in slow markets, then you would likely spend about 240 hours (24 weeks x 10 hrs./week). If you divide the $12,500 by the 240 hours spent making the sale, then you would get paid about $52.08/hour to do the work required. Ask yourself, when was the last time you made that much an hour working at home to answer the phone, book the odd appointment, and show some people around your house? If the property sells in 3 months, you would get paid about $104.17/hr.,and if it sells in 2 months, then you get paid a whopping $156.25/hour for doing the work! This assumes you're selling a $250,000 property. If you double the sale price, you also double the hourly paid to you to sell it. This little calculation goes to show you that hiring a real estate agent is a very expensive proposition.

One of the most important things to keep in mind when selling as a For Sale By Owner is to avoid trying to do everything by yourself. It is strongly advised that legal forms and contracts should be drawn up by a qualified real estate lawyer. A good real estate lawyer will answer all of your questions about the process, and can provide you with all of the necessary forms to take an offer from an interested Buyer. Also, it is recommended that you speak to a mortgage broker who can offer advice on providing financing to qualified buyers. This way if you get a Buyer who wants to talk seriously about making an offer, they can get prequalified for the financing necessary to follow through on the sale.

In terms of time and effort, selling as a For Sale By Owner or listing with a real estate agent is virtually the same with some minor trade-offs in time. On the whole, the amount of money saved by selling as a FSBO is substantial enough to spur every 2 or 3 out of 10 property owners to get going as a For Sale By Owner. Getting help with the whole selling process is easy to, just go to www.ByOwnerInsight.com where you can learn everything you need to know to sell privately and succeed. These are the major reasons that many savvy homeowners, (20%-30%) will never sell with a real estate agent ever again.