Save a bundle by selling home by yourself By Jane Bryant Quinn

NEW YORK - Are you thinking of selling your home yourself, without going through a real estate broker? The people who try it have two particularly strong incentives. First, the value of their house or condo may not have risen much since they bought. If they have to pay a broker's commission, they might not make money on the sale. Second, they might have taken a big home-equity loan, which must be repaid when the house is sold. After paying a broker's commission, too, there may be insufficient cash for a downpayment on another home. And then there are those who simply want to save the money. Generally, the commission comes to 6 percent or 7 percent of the selling price. You might save $9,000 to $10,500 on a $150,000 house, minus selling costs. It's not clear how many people sell their homes them-selves. The National Association of Realtors (NAR) puts sales by owners at 15 percent to 20 percent of the market, although its sample is small and unscientific. In 1993, the U.S. Department of Commerce found that property transfers not handled by real estate agents were running as high as 29 percent. But that apparently includes transfers by inheritance. More recent data couldn't be found. As a guess, the for-sale-by-owner market is smaller than 30 percent but perhaps somewhat higher than the NAR believes. "We don't have a stance for or against FSBOs," says Liz Johnson, a spokesperson for the NAR in Washington, D.C., "although we think using real estate agents is the best way." Bill Supple, who publishes FSBO-support materials, says that selling your own house is easier than most people think. A couple of books For a zillion tips, get Supple's "How to Sell Your Own Home" ($17.95 for the book, $24.95 for the video), from Picket Fence Preview at 1 Kennedy Dr., South Burlington, Vt. 05403, or call 800-201-0338 You must do your homework, not only to achieve a sale but to learn what your obligations are. For example, you have to disclose any defects in the property. Technical support for FSBOs is also being offered by a small but growing number of mortgage companies, who hope to provide you or your buyer with a loan. Mortgage Originator magazine in San Diego, Calif., ran a cover story on FSBOs in 1995 which the publisher, Chris Salazar, says "was one of our hottest issues ever." Robert Larson, co-owner of MoneyMax Financial Services in Denver, provides FSBOs with a number of services, including the videotape from Picket Fence, credit checks on potential buyers, a handout showing the monthly payments and security tips, such as, "get a phone number and tell your caller that you'll call back." Some other suggestions: -Get a professional appraisal to help you price the house. That might cost $200 to $300, Supple says. -Expect to cut your price to something under the market price. Buyers know you're saving the broker's commission and will want you to share the savings with them. But you'll still save half or more of the commission, and your house may sell faster if it's lower priced. -Put up a professionally printed yard sign, saying For Sale by Owner, By Appointment Only. According to industry sources, a large percentage of homes are sold to people who saw the sign while cruising the neighborhood. -Advertise in the newspaper classifieds. You'll find FSBOs on the Internet but I don't know how effective they are. -Consider advertising in a local FSBO magazine that distributes copies free. Supple knows of some 100 of them around the country and will give you their names at no cost (he himself publishes four in New York and Vermont). But ask who reads the magazine and how it's distributed before laying money out. -See a lawyer or escrow agent before you start to get the legal documents you need, such as a binder agreement for earnest money. -Real estate agents will call, sometimes claiming they have a buyer. You might let them specify the client by name and offer half the commission (3 percent) if that person actually buys. -Don't be impatient. Houses may take two to six months to sell, and sometimes more. Jane Bryant Quinn welcomes letters on money issues and problems but cannot offer individual financial advice.

Jane Bryant Quinn is a nationally syndicated Personal Finance columnist . Over 500 newspapers publish her columns,
including The Burlington Free Press. The Free Press, along with many other newspapers including The Washington Post,
chose not to publish this particular column