Expert: Jim Root - 3/31/2008

Question
Hello!,
I'm looking for basic advice for a basic situation - I only moved once before in my life, about 13 years ago.  I live in Florida (property tax portability just passed - yeah!).  I want to sell (in this lousy market) my primary (3/2.5/2 2,070 sq.ft.) single family home (still in good shape - survived 3 hurricanes anyway!), which I bought brand new 13 years ago.  I want to move, within Palm Beach County, and buy another one.  I want (almost need) to move by the end of the summer, so I have about 4-5 months to completion.  I just resigned my job but my wife is earning $65K/ year.  So I have time to prepare my house for sale, help sell it, move, and set up the "new"(probably used) house (then find a new job!).
I've picked out the area we want to move to, but haven't picked out a house yet.  I own my home outright (currently worth $299K per zillow.com - it was worth $395K about a year ago) and have close to another $100K in cash (plus a few 100K's in retirement).  I'm thinking of buying a house around the $350 - $400K range (don't want to borrow any $ for this hopefully).
Questions:
1. I was advised to try selling it myself first, and if I couldn't, then try a real estate agent.  What do you advise?What are the pros/ cons of using a real estate agent/ realtor? (my first house I sold on my own for a small gain - I always wondered if I used a realtor maybe I could have gotten significantly more?)  If you recommend going the agent route, who do you recommend?  If I sell on my own, what are the best ways to go about it?  There is forsalebyowner.com vs. buyowner.com vs. byowner.com (those plans almost seem like having a realtor anyway), vs. the good ole' local newspaper at $200 for 2 weeks?  I live in a homeowners association so we can't put a sign in the yard but I think I can in the window.
2.  Zillow.com shows the value currently at $299K.  Should I price it at about that price, above, or slightly below in this rough market?
3.  How do I go about shopping for a title company?  What am I looking for?

THANKS!
Jeff

Answer
Hey JEFF--

FSBO vs.AGENT inquiries are always welcomed! The answers, though, are not always "cut & dried!" There are a lot of "variables" involved.

I'll have to answer your questions in an "either or " way!

Your Question #1:

It is my opinion that in almost all circumstances, a Homeowner should use the services of a licensed, experienced, honest and caring Listing Agent who is a member of their home-town Chapter of the National Association of Realtors AND the local Multiple Listing Service (MLS)!

Over the years I've determined that 80% of all homes offered FSBO are eventually listed by a Realtor and sold--after the Seller had wasted away from 3 to 6 months and spent hundreds of dollars on advertising the home at a price LESS than what the Realtor was able to negotiate for them when the home finally sold trough he MLS function! The prices that the Realtor-listed homes achieved typically more than OFFSET the commission the Seller paid for having the work done by a PROFESSIONAL!

In a Market like the one your in now, with too many homes for sale, values declining,a "weak" Market,a Buyer's Market, some 90% of the folks who ARE looking to buy are looking at the MLS offerings being shown to them by Realtors. And because an Agent is right "on top" of prices/values, these MLS-listed properties are fairly priced (for both the Buyer and Seller)!A FSBO LOSES 10% OF THE BUYERS IN HIS?HER MARKET AREA!

Your Question #2:

Zillow values are often "questioned" by licensed Appraisers AND/OR Realtors who are constantly monitoring, working with valuers in a SPECIFIC area! Often the "Zillow-type" Appraisals are either way LOW or WAY high! A Listing Agent will do a "Comparative Market Analysis" (a "Mini-Appraisal")  and will usually be very close to what an Appraiser will later establish as value for the home. A PROPERTY OFFERED FOR EITHER MORE OR LESS THAN WHAT THE MARKET INDICATES CREATES SERIOUS PROBLEMS FOR THE SELLER!Automated, computerized, long-distance VALUATIONSD are seldo very accurate!

Your Question # 3:

Go shopping for a Title Company--or a FSBO Company--or a Realtor--or a Loan Officer--or a Home Inspector--or an Appraiser--or WHOEVER/WHATEVER you need to get your home sold--just like you'd selecting employee for your business. "Cause that's what selling a home is--it's a BUSINESS, your Business, and you want it to go smoothly and make a profit! Interview the PEOPLE who represent the job you need done, evaluate them as to their experience, skills, knowledge and motivation--then hire the one(s) you"feel good " about!
(SEE MORE ON HIS BELOW)

This having been said, at the very least, I'd recommend a "forsalebyowner.com" or "help-u-sell.net, etc, rather than going it alone as a "Fizzbo!" Most of these companies charge a relatively low, flat fee, and help with pricing, advertising, open houses, helping Buyers get financing, selecting a title and home inspection helpers, etc.Check out what they'll do for you--and how much they'll charge. Also talk to one or two Realtors about their services and charges. Commission rates are NEGOTIABLE (by law) and you MAY be able to get full service for less than the "typical 54 or 6% most Realtors charge (Remember that in  any case, you can usually offset the commission by including it in the sale price of your home)

If you want to discuss this matter more with me--have specific questions while making your decisions to proceed either as a FSBO, with a Help-U-Sell Company OR with a Realtor, just contact me again GOOD LUCK, Jeff!

--JIM