Saving the commission crosses the minds of many sellers - unfortunately for the seller, it also crosses the minds of many buyers and their offers will reflect this. If you are considering selling your home without the services of a professional realtor, you should be aware of the following statistics.

• For Sale By Owner homes, on the average, net less than homes listed with a professional realtor

• Only about 1 out of 20 For Sale By Owner homes actually sell!

• Within 90 days, over 90% of For Sale By Owners decide to list with a professional realtor

The enormous amount of time and effort required to sell a home often surprises the "For Sale By Owner." Furthermore, many costly mistakes can be avoided with the right guidance.

1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.

2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long…there must be something wrong with the home.

3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor… and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate agent does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a real estate professional Realtors© are trained on how to overcome buyers remorse--a very common occurrence.

4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.

5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.

6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.

7. The majority of qualified buyers are working with experienced real estate professionals.

8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.

9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.

10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate agents to bring potential buyers.

11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.

12. Only real estate agents have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to agents. Further, real estate agents are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.

13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.

14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Realtor© can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.

If Selling:

A realtor can advise you on how to make your home more competitive and marketable.

A realtor has extensive product knowledge enabling him/her to set a competitive and fair price so that your home will sell quickly.

A realtor has an enormous network of potential buyers as well as access to the Multiple Listing Service (MLS) giving your home maximum exposure.

A realtor has well-honed negotiating skills to ensure that you get the best price possible for your home.

A realtor is skilled in drawing up legally binding contracts.

A realtor will see to all the details from beginning to end and look after any problems that may arise leaving you to enjoy your search for a new home.

If Buying

A realtor will help you determine what you can afford and what kind of home will best suit your needs.

A realtor will then provide you with a list of homes for sale that are in your price range and possess all the qualities you require.

A realtor saves you a lot of running around and wasted time by providing you with a list of quality homes and securing appointments to view them.

A realtor has a wealth of information on everything from financing to amenities within the community.

A realtor will negotiate on your behalf to make sure you get the best possible price.

Buying New

Once you have made the exciting decision to buy a new home, careful research is a must. The following checklist will help you get started and make your search a little easier.

• Determining a price range is the first step.

• Now that a price range is established it is time to decide where you want to live. Research the neighbourhood thoroughly before making a commitment.

• Select a quality builder. Ensure that the builder belongs to a professional association with a strict code of ethics. If there is a New Home Warranty office in your area, ask them for a list of registered builders. References work. Ask for recommendations from people who have recently built. Talk to at least three registered and recommended builders before choosing one. Check out the quality of work in the builder's previous homes and talk to the homeowners. Ask about a follow-up system for any problems you may have after you have moved in.

• Contact a real estate office and request a realtor who specializes in new homes. Someone who is familiar with the professional home builders in your area.

• Some important questions to ask yourself before building your home:

• How long will I stay here?

• How many will live here (will it increase or decrease over time)?

• How many bedrooms and bathrooms are needed?

• Do I need a finished basement ?

• Do I need a formal dining area or just a large kitchen?

• Do I need a room for a home office?

• What are my storage requirements?

• Will there be boarders?

• Do I wish to (or can I afford) to upgrade some of the standard choices?

Your must haves and your would be nice choices should be discussed with your professional builder. The builder will be able to help you achieve the maximum from your budget by offering you alternatives to costly projects.

Just remember, builders and developers are not Realtors and are not bound by the Real Estate Act. This means that an uninformed buyer may discover that the property they purchase is nothing like the property they were sold. Furthermore, because their builder is not covered by Errors and Omissions insurance, the unwary buyer may find themselves solely burdened with fixing problems left behind by the builder. Having an agent asking the right questions on your behalf and working for your protection is the surest way to ensure the timely and accurate fulfillment of your builders contract.