Can I Sell My House Myself in This Economy?

Reader Question: I will be selling my house this spring, and I'm wondering whether or not I need to hire a real estate agent. Can I sell my house by myself in this type of economy?

I make it a policy never to tell people whether or not they need an agent. I'm not trying to be evasive, but it really is a question you must answer for yourself. So instead of saying whether you can your house by yourself in this economy, let me focus on the tasks that need to be completed. Then you can decide if you need help.

In many parts of the country, it's hard to sell a home right now. There are two primary reasons for this (and each of them opens a separate can of worms).

The first reason has to do with a reduction in the buyer pool. There are fewer home buyers today than a couple of years ago. People are losing their jobs in record numbers right now, so fewer people are in a position to buy a home. We are firmly rooted in an economic recession, and whenever that happens, major purchases are the first thing to drop off.

The second reason it's hard to sell a home right now is the surplus factor. There's a huge inventory of homes in most cities across the U.S., largely a result of the foreclosure crisis that swept across our country.

So when you ask the question, "Can I sell my house myself in this economy?", you must take these things into account. These two factors combined have created the classic buyer's market in most cities. There are plenty of homes for sale, but fewer buyers to go around. So it's a lot harder to sell a house in this kind of economy.

When selling a home under these conditions, you need to do the following:

• Ensure that you have priced the home competitively, based on current market conditions.
• Stage the home effectively in order to show off the good features and eliminate the bad.
• Market the home to the widest possible audience, to lessen the effects of a buyer shortage.

This is where it might pay to have the professional help of a real estate agent. If you're confident in your ability to handle these important tasks by yourself, then you might be able to succeed with a for-sale-by-owner / FSBO strategy. If you're not up for the task, however, you should hire an agent with a track record of selling homes in this tough market. Proper research is also critical. You need to know what homes are selling for in your area, how long they are staying on the market, etc.

You also need to find out what your home is worth in the current economy. I know I've said this already, but it needs to be repeated. Home values have dropped across the United States, and in some places they've dropped considerably. So the price you paid for your home two, five or ten years ago is no longer relevant. Sorry. I know that's a hard pill to swallow, but you have to understand the situation.

An agent can help you determine the current value. If you're trying to sell the house yourself, I recommend paying for a home appraisal before you set the asking price. You can use one of the home value websites to get a general idea, but nothing takes the place of a professional appraisal. The home value sites only look at data from recent sales in your area -- they do not take into account other important factors such as the upgrades you've made, current condition of the home, etc. That's why you should start with an appraisal.

Can I sell my house by myself in this market? It's a common question among homeowners who plan to sell, but it requires some careful thought. It's a question that only you can answer, but I hope this article makes the decision easier for you. Good luck.

P.S. -- If you want to learn more about this topic, check out our comprehensive guide to selling your own home. It covers every aspect of this process in great detail. Definitely worth a read!