Do you know the area market and current market conditions?  Many factors influence the real estate market and changes can occur rapidly.  Knowing the market is important, not only in setting your selling price, but also developing realistic expectations about the time it may take to sell your home.

Do you know how to best price your home for sale?  Correctly setting your asking price is critical. Setting your price too high can be as costly as setting it too low.  Home prices are determined by fluctuations in the marketplace, not by your emotional attachment or by what you feel your home is worth.  In order to establish a realistic price for your home, objectively compare the price, features and condition of all similar homes in both your neighborhood and other similar ones which have sold in recent months.  Carefully budget your selling costs and prepare a net proceeds sheet to calculate your best estimate of what you will take away from your home sale.  Prospective buyers may also request this kind of analysis of buying costs.

Do you know to negotiate the terms of the sale?  Terms are often as important as price in today’s market. 

Are you objective in preparing your home to meet buyers' expectations?  First impression is crucial.  Make sure your home makes a positive statement by carefully inspecting all details and viewing it through the objective eyes of a buyer.  Don’t gloss over needed repairs and fix-ups, as your prospective buyers won’t.  Your job is to ensure that your home stands out favorably from the competition.

Do you know all the contracts, legal documents, and forms that must be completed and signed by all parties? Not surprisingly, there are many important legal contracts and documents which you must assemble, complete and understand.

Do you know how to market your home effectively to independent home shoppers and those already using a Realtor?  Some buyers can be reached through the newspaper, but this is only a small part of the market you are after.  Recent studies show over 40% of home buyers now use the internet in their search for a new home.  Be sure you include the many buyers who could already be working with a Realtor®.  To locate them, target as many top agents as possible in your market to see if the criteria of their buyers matches that of your home’s.  Because out-of-town buyers are also an important target, you should create a strategy to reach these people as well. 

Are you prepared to answer the phone at all hours and have your home ready to show whenever someone rings the doorbell?  You must be very service-minded and make it easy for pre-qualified buyers to view your home. 

Can you remain objective when you are showing your home?  It can be difficult to overcome objections and field criticisms without becoming emotional and defensive.

Do you know how to qualify prospective home viewers and research potential buyers?  You can waste a lot of your time entertaining buyers who could never afford your home.  With today's privacy laws, it is increasingly difficult to research their financial steadiness with respect to job security, salary, debts, liabilities, and credit standing. 

Do you know how to negotiate and process a qualified sale offer?  There will be many details to resolve before a sale can be considered final:  price, terms, inspections, possession date, buyer concerns and objections.  Make sure you fully understand the contract you have drawn up so you can in turn explain details and ramifications to the buyer and make any amendments to the sale that are necessary.  The contract you use should be thoroughly examined by your real estate attorney. While this is going on, manage the buyer’s interest in your home, so that it doesn’t wane during negotiations.

Do you know your buyers?  It is essential to determine what your buyer’s motivation is.  Does he or she need to move quickly?  Do they have enough money to pay your asking price?  Knowing this information will give you the advantage in the negotiation because you will know up front what you will need to do in order to get what you want.

Do you know how to calculate your selling costs and net gain?  To analyze whether or not you will end up ahead by choosing to sell on your own, consider the fact that MOST BUYERS DO USE A REAL ESTATE AGENT because it doesn’t cost them anything for this service (i.e. the seller pays the agent’s fee).  You must also be cautious as buyers, investors, and speculators who seek out FOR SALE BY OWNERS are typically those in search of a bargain.  The low-ball offers from these types of buyers will often NET YOU MUCH LOWER in the long run. 

You will have to judge for yourself: 

1. Are you prepared to handle all marketing, negotiations, evaluations, showings, and all legalities?

2. What will it cost you to effectively market your home and assemble all necessary materials from the “for sale” sign to any contracts?

3. What price will a buyer offer you as a For Sale By Owner minus the costs identified above?

4. Is this net price higher than the price an experienced agent could net for you minus his/her commission?