Roughly 15 percent of homes for sale are sold without the help of a real-estate agent. This practice, known as FSBO (pronounced “fizz-bo”), or for sale by owner, can save the seller thousands of dollars in commission fees if done correctly. However, selling homes by owner is not easy. It requires a lot of legwork, not to mention time, patience and a savvy knowledge of the real-estate market.

Readying Houses for Sale

The first thing you need to do when attempting FSBO is educate yourself on real-estate laws and procedures, including:

• Advertising
• Closing
• Marketing
• Negotiation
• Price setting.

Price setting is particularly important, because setting too high a price could deter buyers at first. And the longer the house sits on the market, the less likely it is that buyers will check it out. When a house has been on the market for months with no activity, buyers wonder why. And if you lower the price after a while, it’ll seem like you’re desperate to sell. It is better to set a realistic price from the beginning.

Next, you need to advertise your home for sale. You can get help from FSBO websites and list your home on the MLS (Multiple Listing Service). Stage your home–in other words, get it ready for buyers–by clearing out clutter from the inside and outside of the homes, rearranging furniture and painting the walls in a neutral color. Arrange open houses so shoppers can see the home, and make yourself available to appointments with potential buyers.

Negotiating and Closing the Home Sale

Negotiating is one of the hardest parts of dealing with homes for sale, and it’s a task that a real-estate agent would normally handle. If you’re selling on your own, you’ll have to negotiate directly with the buyer. Plus, an FSBO seller is at a disadvantage because buyers are more confident “low-balling” an offer, since they know the seller doesn’t have to pay commission fees. When negotiating, try to detach yourself emotionally from your house and view each offer objectively.

Never sign a contract with a buyer unless you’re certain the deal will go through. For example, if a buyer is shopping for a ridiculously low mortgage rate and the contract is contingent on the buyer getting that rate, don’t sign. The buyer doesn’t have to disclose their financing to you, but it can’t hurt to check in on them to make sure they’ve arranged for the mortgage, homeowners insurance and house inspection prior to closing.