Consider selling home yourself

Everyone knows the real-estate market is hot. Rock-bottom interest rates allow buyers to borrow more, and the plentiful supply of money is driving home prices upward.
For sellers, the boom also makes it easier to unload a property fast.
In fact, so many homes are selling so fast you may wonder whether you need a broker. Why pay a real-estate agent 5 percent, 6 percent or 7 percent of your sales price if your property can practically sell itself?
In fact, it has become easier and easier over the years for homeowners to go brokerless, largely because the Internet provides so much data and easy access to buyers.
Selling without the help of a real-estate agent is definitely not for the thin-skinned who can't stand to hear their properties criticized. It's not for those who are afraid to negotiate, those in a big hurry or those who resent wasting time with tire-kickers.
Not so tough
But it's not as difficult as many real-estate agents would have you believe. The most perilous parts of the process -- coming up with a legal sales agreement and completing a closing -- can be done with the help of a lawyer and title company.
Together, these services might cost less than $1,000 -- not bad if it saves you $6,000 in agent's commission on every $100,000 your home commands. Title companies and real-estate attorneys are listed in the Yellow Pages.
One of the most valuable services received from a traditional agent is help setting an asking price. Generally, this is done by looking at recent sales of comparable properties nearby.
You can get a pretty good idea of the going rate by studying other homes for sale in the area.
Or, for $30 you can purchase the most up-to-date comparable sales data from the same source used by real-estate agents -- First American Real Estate Solutions of Anaheim Hills, Calif., (800) 421-1052.
Or find a real-estate appraiser in the Yellow Pages to do a custom appraisal that will adjust for all of your property's unique features. That could cost several hundred dollars.
Alternatively, start with a high price and trim it if you don't get any bites.
In a hot market, you may need nothing more than a lawn sign to lure a buyer. I've sold a couple of houses that way.
I'd start with just a sign and an ad in the local paper and go the next step only if this approach failed to generate "traffic" -- prospective buyers.
Multiple Listing Service
Most buyers work through real-estate agents, so that next step is to have your property listed on the Multiple Listing Service, the mother lode of homes for sale.
A number of companies will put properties on the MLS for a fee. One of the largest is the Internet-based firm, ForSaleByOwner.com, at http://www.forsalebyowner.com/. Its cheapest MLS plan is $449.
In addition to the MLS listing, your property will be shown on the enormous site run by the National Association of Realtors, http://www.realtor.com/.
By using the MLS, you are obligated to pay a commission, typically 3 percent, to any agent who brings you a buyer. But you pay no commission if you end up with a buyer who does not use an agent. Of course, you are not obligated to sell to a buyer who uses an agent.
A similar service is offered by Flat Fee MLS Listings, http://www.flatfeemlslisting.com/.
Qualifying for mortgage
A second valuable service performed by real-estate agents is checking to see that a prospective buyer is likely to qualify for the mortgage he or she will need to buy your property.
Typically, such a "prequalification" is furnished by a mortgage lender contacted by the agent, but the agent is not necessary in this process. You can simply ask the prospective buyer to obtain a prequalification from a lender and provide you a copy.
XJeff Brown is a business columnist for The Philadelphia Inquirer. E-mail him at brownj@phillynews.com.