Although selling a house isn't rocket science or heart surgery if you've done your homework, it does require some important skills. Even the smartest of FSBO sellers can get into trouble for several reasons.

You may not know how to price property
If you overprice your property, it isn't going to sell. Buyers and agents who know property values will, in fact, avoid it like the plague. In the end, you may not get as much for your house as you could have by pricing it realistically to begin with.

If you underprice your house, you may sell it below its market value — shortchanging yourself thousands, perhaps even tens of thousands, of pounds. Say good-bye to the commission you "saved."


You may not know how to prepare your house for sale
Your familiarity with your house can be a liability if it blinds you to your house's flaws. You may like your house's clutter and quirks, but their dubious charms may turn off prospective buyers. One important benefit that a good agent brings to the table is a fresh pair of eyes and a desire to whip your house into get-it-sold shape.

You may not know how to market your property
Did you know that a humble, low-tech For Sale sign and a classified ad are two of the most potent forms of advertising available to people who sell their houses without using an agent? Do you know how to use the Internet to market your house? Unless you have a background in real estate or marketing, you probably have some research to do. In addition, by undertaking a FSBO, you miss out on two powerful promotional tools only available to agents: the multiple listing service (MLS) and brokers' tours of newly listed properties.

You may not know how to separate real buyers from fakes
Serious buyers make good offers. Bogus buyers waste your time and money. In the worst of all possible scenarios, you may unintentionally allow someone with criminal intentions into your house.

You may not have enough experience as a negotiator
If you know that you're a weak negotiator, you have to be especially careful about selling your house without an agent. Not knowing smart negotiating tactics can cost you big bucks. Even if you are a good negotiator, your financial and emotional involvement in the sale may cause you to lose your cool when bargaining with a buyer, or you may undermine the deal appearing greedy.

You may get yourself into legal trouble
Selling your house yourself to save on real estate brokerage commissions is a hollow victory if the buyers sue you after close of escrow because you didn't give them the mandatory federal, state, and local property disclosures about problems, such as lead-based paints or work you did on the property without a building permit.

Don't discriminate! Disqualifying prospective buyers on the basis of race, color, religion, sex, handicap, familial status, or national origin is stupid and illegal. Discrimination can get you into a heap of legal trouble and can cost you big bucks. If in doubt, check with the Equal Housing Opportunity agency in your area.

You may not know how to close the sale
You won't save on commissions if your deal falls apart in escrow. As a FSBO seller, you have to make arrangements that a good listing agent normally handles. Do you, for example, know how to open an escrow, get a preliminary title report, order property inspections, handle contingency removals, and order a payoff demand for your mortgage?

Execute a successful FSBO
Selling a house without an agent is doable, but it's considerably more challenging than it looks. If, after weighing the pros and cons of doing a FSBO, you decide to attempt to sell your house yourself, consider the following points.

Educate yourself
The things you don't know are generally what get you into trouble. Research the methods you need to employ to help you sell your house for top dollar and steer clear of problems, whether you do a FSBO or use an agent. Even if you decide to hire an agent, you may still want to bone up on house-selling information so you can manage the transaction better and feel much more comfortable if you're knowledgeable about what's going on.

Even if you feel sure about selling your house sans agent, interview several good agents. Interviewing agents may reaffirm that you can handle the sale yourself, or the interviewing process may convince you that you'd be better off hiring the best agent you contacted. You'll probably pick up some helpful advice and information you can implement if you do decide to sell yourself. And, if your FSBO isn't successful, you can always hire the best candidate after you've given FSBOing a shot. Either way, interviewing agents is well worth your time.

Ensure that other team members are especially strong
Without a real estate broker or agent on your team, making sure that your other players are the best they can be is all the more critical. Be especially careful to hire an excellent real estate lawyer.

Cooperate with agents
Because most buyers work with agents, be sure to mention in your classified ads and listing statement that you "will cooperate with agents." This statement tells local agents that you are willing to pay them a commission if they procure the buyer who ultimately purchases your house.

Financially qualify prospective buyers
When someone makes an offer on your house, don't take your property off the market until you're sure that the buyer's are going to be able to swing the deal financially. Few buyers are wealthy enough to pay all cash for your house. Most folks need to qualify for a mortgage.

If the buyers are preapproved for a loan with a conventional lender, terrific. Preapproval means that they've gone through a rigorous financial examination. If, however, the buyers are just starting to shop for a mortgage, inquire about their occupations, incomes, and the source of their down payment for the purchase. When the buyers apply for a mortgage, get their permission to contact the lender to find out the likelihood of loan approval. (Even though you probably aren't going to be financing their purchase of your house, find out what smart lenders look for on a mortgage application.)

Watch out for buyers who make their offer to purchase your house subject to the sale of their own house first. This tactic, if handled improperly, can tie up your property and scare away buyers who are ready, willing, and able to buy immediately.