No place like the Web
Home sellers can navigate market, check prices, more
By Cecily Fraser, CBS.MarketWatch.com
Last Update: 12:02 AM ET Feb. 28, 2002

LOS ANGELES (CBS.MW) — Thinking about selling your home?

Spring is one of the busiest home-shopping times, and tighter supply of resale homes this year could make it easier on sellers looking to get the best deal on their house, experts said. Since January, low mortgage rates, favorable house-hunting weather and appreciation in housing values have attracted buyers at a record pace.

"We're not in the situation a year ago where you had bidding wars," said Ben Joslin, vice president of marketing at Domania.com. "It's now latent demand, people who didn't buy in the last two years because prices were inflated."

While each sale is different, home sellers nationwide share a similar goal: To sell their property with few hang-ups. While the process is thornier than it used to be, the Internet can be a sellers' greatest asset in navigating a hot housing market.

Web sites offer volumes of real-estate resources that make it easier to move sales forward, whether or not an owner has hired a Realtor. Many sites will walk you through necessary steps for a successful sale — from maximizing your home's appeal to setting the price.

Here's a look at some key considerations home sellers should bear in mind and how the Web can help.

For sale by owner or agent?

The first questions a home seller must answer: "Do I want to sell the house on my own or hire a Realtor?" For many, the deciding factor is money.

"It's a key consideration, with 5 or 6 percent coming off the top" if you chose to work with a Realtor, Joslin said.

However, first-time sellers may especially benefit from the expertise of a top-producing agent who tracks real estate trends and is up-to-date on pricing and demand in each neighborhood, said Bradley Inman, chairman of Homegain.com. "This is about marketing and selling your house. It's a liquid asset that you want to sell for top dollar."

There are a few types of agents sellers can work with. Among them: A full-service broker that takes the sale all the way to the finish line, a flat-fee agent that steps in to help with tasks such as open houses or price negotiations or a national discount service such as ZipRealty.

"In the times we're living in now, with tight inventory and (houses) selling quickly, consumers have a lot of options open to them," Joslin said.

At Homegain.com, users can create an anonymous profile that's distributed to 50,000 agents who may offer a bid for your business. Home sellers can read about an agent's experience and sales commissions, as well as how they plan to sell the home. On average, users can expect to receive about seven competing bids, Inman said.

As you weigh your options, consider checking out RealEstateABC.com's top 10 list of mistakes sellers make in selecting a Realtor. An impulsive or uninformed decision could cost you time and money.

Still, as greater housing demand puts the ball in more sellers' courts, many are choosing to manage the sale themselves. Sites such as Fisbo.com cater to this do-it-yourself crowd, offering a platform where consumers can list and post pictures of their home for free.

For $99, Fisbo also will send you a yard sign, as well as place an ad in the real estate section of your hometown newspaper, said Jeff Chadbourne, president of Fisbo.com.

"This is the type of environment when they can (sell on their own) because everyone is looking for property, and if you put an ad in the paper or hang a sign, you'll get a good response," Chadbourne said.

Domania offers a checklist owners can reference to make sure the sale they're running is on track, with tips on familiarizing yourself with the paperwork or disclosing a home's defects. Homegain.com and Homestore also feature step-by-step articles with guidelines for managing the sale.

Price points

When determining price, a number of factors — including market conditions and interest rates — will be critical in establishing how much you can ask for the home. The important thing is to be realistic, and a number of online calculators can help you come up with a suitable asking price.

Homegain.com and Domania.com, for example, will mine through data such as Zip codes to estimate the current value of your home by assessing recent sales in neighborhoods.

Checking the current market is a critical step, Joslin said. "You don't want to underprice the home because it's a good market to be selling into."

Polish the house

Before a home is placed on the open market, sellers need to make sure their house is ready to show. A Realtor may outline what kinds of upgrades are needed to make a home more attractive.

Still, there are many basic chores a seller can complete on their own, including getting rid of the clutter, cleaning the windows, or planting some flowers.

Plus, many sites offer tutorials to help you complete minor repairs to strengthen a home's first impression with buyers. As part of its "Home sale Maximizer," Homegain.com has tutorials to help you patch drywall, replace damaged shingles or repair a leaky kitchen faucet.

Still, if bigger improvements are needed, it may be in the seller's best interest to tackle those that will add to the value of the home, Joslin said This could include modernizing a bathroom or making sure the lawn is in good shape.

"This will strengthen the selling price and you'll probably recoup the investment," Joslin said.

As you weigh potential improvements, it's wise to check out Homegain's "Home sale Maximizer." This online tool indicates what percentage of Realtors would recommend certain repairs or upgrades, such as new carpeting, as well as creating a budget and calculating your return on investment.

For example, 77 percent of agents suggest front and backyard landscaping if your property is full of clutter, dead or dying plants. Homegain estimates it will cost the seller $647 to get rid of personal effects from their yard, as well as hire a gardener or landscaper. Yet that could increase the selling price $1,787 to $2,763.

Overall, sellers are still "doing okay," Inman said. They stand to get their asking price, if not "slightly less."

"But that's okay," Inman said. "They made enough in their equity in the last 10 years."

Cecily Fraser is Assistant Personal Finance Editor for CBS.MarketWatch.com in Los Angeles.