Gone are the days when a for-sale-by-owner's only option was to pound a hand-written, store-purchased plastic sign into the yard to declare "this home's for sale". Today several quick clicks on the web can unleash offers of everything from custom-made signs delivered overnight to an array of papers and forms.

But can these services really lead to the promised land of quick sales and no brokers? Why is it that futurists who predicted that self-selling would be a breeze with the Internet have proven wrong? Here are five cautions to consider when evaluating for-sale-by-owner (FSBO) resources on the web -- cautions which explain in part why broker services are still used in the overwhelming majority of transactions.

1. Are individual services sufficient?

Turn to many online FSBO sites and you'll be enticed to purchase home-for-sale business cards, contract forms, and how-to-do-it videos.

Will such products make your home competitive with properties offered through the brokerage system? Do they solve the puzzle of finding the right price, negotiating terms, and meeting local sale requirements? And what about cost?

The catch, of course, is that marketing materials and programs do not make a transaction. There is more to the process than saying that a property is available.

2. Are services localized?

As a broad rule of thumb, general selling tools such as signs, ads and advertising can be marketed across state lines. But real estate is localized. Without an in-depth knowledge of your local community, will general marketing services help? For instance, if a generic sale form lacks special language required in your community, will you have an enforceable transaction? Can you price a home from another state? From another county? What about the personal skills of negotiating, advocating and troubleshooting that brokers offer?

3. What about legalities?

Make sure the services/tools you purchase are specific to your location. Just because you can find generic forms, contracts, and disclosure notices online doesn't mean they're acceptable in your specific jurisdiction. What a nightmare you'd have on your hands when, prior to closing, the buyer backs out claiming that you've used a property disclosure form that's not sanctioned in your state! If blank forms seem attractive, check first with local attorneys before using.

4. How much marketing help are you getting?

Some for-sale-by-owner sites claim they will be able to expose your property to additional prospects. This may be true, but what is the benefit? For instance, how many local properties been marketed through an online site -- properties within your neighborhood?

As you would with any major product or services, ask for references -- and then speak with recent customers.

5. What if you're dissatisfied?

Most brokers work on commission. If there is no sale there's no fee. If you don't like your broker there are many places to complain, including state licensing agencies. But what if an online firm is a thousand miles away and they've already cashed your check?

Online sites which serve self-sellers offer selling tips, advertising, and general information. But real estate marketing is specific, localized, and competitive. There is useful and valuable information online, but selling real estate today involves more than form agreements and generalities.

Given that some five million existing homes are sold each year, it follows that some portion of all properties will be marketed directly by owners. At the same time, futurists who predicted that the web would largely do away with local brokers have proven wrong -- at least so far.

For more articles by Julie Garton-Good, please press here.

Published: May 18, 2001

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Julie Garton-Good, DREI “The Frugal HomeOwner™” As a syndicated newspaper columnist, author and international speaker, Julie Garton-Good DREI, C-CREC™, is called “America’s Home Affordability Expert”, addressing more than 25,000 persons annually on topics of real estate industry trends and home affordability. She is the author of five real estate books and is the sole two-time recipient of the international "Real Estate Educator of the Year" award from the Real Estate Educators Association. In 1997, The National Association of Realtors® nominated Julie as one of the fifty most influential people in the real estate industry. She shared the list with only three other women.