WHITTIER, Calif.--Knowing how much a real estate agent would make in commission on the sale of his Whittier home, Zal Siapno set about finding out what it would take to do the job himself. After about two months of consulting friends and family and getting his home professionally appraised, Siapno felt prepared to sell his home. "I was fascinated by the amount of money they make," Siapno said. Three weeks after he put a "For Sale" sign in his front yard, the 1,576-square-foot home sold for $ 291,000, said Siapno, 36, who works in metal sales. He spent just over $ 2,000 for advertising, appraisal and closing costs, he said. "I gained confidence and money, of course," he said. Although it remains a small part of the market, the number of people choosing to sell their homes themselves has increased in the last four years, according to Raphael Bostic, director of the Casden Real Estate Economic Forecast at the USC Lusk Center for Real Estate, . "Because the market is hot and prices are going up, people want to capture as much of the appreciation as they can," he said. Realtors representing a buyer and seller typically split 6 percent of a home's final sale price as commission. Shared commission on a median priced home of $ 332,210 in California during May would be $ 19,993.60, according to the California Association of Realtors in Los Angeles. Independent sellers keep at least the 3 percent that would otherwise go to their Realtor, plus another 3 percent if the buyer is also not represented by a Realtor, Bostic said. In 2001, 79 percent of homes nationwide were sold by real estate agents, while homes sold by owner accounted for 13 percent, said Walter Molony, a spokesman for the Chicago-based National Association of Realtors. One percent was sold to homebuying companies, and another 7 percent was sold through other entities, according to NAR's figures. Approximately one-third of the homes for sale by owner, called fizbos for the acronym FSBO, were sold through personal transactions instead of on the actual market, he said. There were 5.25 million existing home sales during 2001, according to NAR's figures. However, some real estate industry insiders say, there are some inherent risks for independent sellers. One issue is that such sellers forgo the legal expertise of Realtors and instead assume all responsibility themselves, Bostic said. "I think the biggest concern I would have would have to do with making sure all the legal bases are covered," Bostic said. "You'd want to make sure there is no way you would end up in court." There are 20 or more separate disclosure laws that pertain to all sellers in California, whether or not they are represented by real estate professionals, said Vince MacIsaac, a Glendora-based real estate lawyer who represents real estate companies. "It's hard enough for real estate professionals to keep up with the changing laws in California. How a seller is supposed to do that is beyond me," MacIsaac said. He compared independent selling to "operating on yourself as a doctor or someone going into court and filing their own lawsuit." With buyers now paying record high prices for homes, they are more likely to make claims if something goes wrong after a sale, he said. Claims can range from $ 5,000 for a new roof to million-dollar personal injury claims, MacIsaac said. Sellers vending properties themselves could face problems "at least five-fold" than sellers using professionals, he said. Insurance issues also could arise between buyer and seller, he said. "A good real estate professional will do the best they can to educate the seller as to all the things they are required to do," MacIsaac said. Sellers on the open market also can miss out on competition for higher prices and can drive up the prices of their homes, said Dana Rosas, a Realtor at RE/MAX Masters in Covina. "There is no substitute for an experienced Realtor... as far as marketing correctly and protecting the seller," Rosas said. Independent sellers also may lack knowledge needed to do such things as fairly price their home and perform necessary pre-market inspections, said Toby Bradley, CAR's president. Misunderstandings and suspicions can form between buyers and sellers, which can lead to fewer closed deals, she said. "(FSBO) can be done, but most people don't have the time, the energy or the level of knowledge," said Bradley, who has been in the industry since 1980. She said independent sellers sometimes also have the misconception that they can receive selling information from escrow officers. Homes for sale by owner also will typically be on the market longer -- one to three weeks longer -- than those represented by professionals because of less publicity and some Realtors' reluctance to show homes not represented by a professional, Bostic said. "It's a competition for Realtors, and in a competition situation, usually you don't take too many steps to help out your competition," he said. However, with the current home market, FSBO homes usually sell at about the same rate as homes sold by experienced Realtors, Bostic said. Overall, he estimated, most independent transactions go smoothly. Problems, he said, are only slightly more likely to occur than they would be if a Realtor was used. Bostic advises potential independent sellers to educate themselves about the ins and outs of selling a home through classes, books and how-to kits before beginning the process. "Ultimately, this is a legal contract you're entering into, and you want to make sure all the I's are dotted and the T's are crossed," Bostic said.
