Selling a home is a time consuming, arduous process that is usually rewarding in the long run. There are various rules and regulations that a seller must follow to ensure a successful transaction. You can gain access to all of this information over the Internet but it is still nearly impossible to decipher what is important, what is not necessary and what will lead to the biggest profit. In order to lessen the stress of having to follow all the guidelines and eliminate making a costly error, a seller should hire a real estate professional.

The article, “FTC releases real estate guide for sellers” posted on October 16, 2006 on Inman News explains how there is now some help in finding the right real estate professional for your sale.

“The Federal Trade commission has released a real estate guide (‘Selling Your Home? Tips for Selecting a Real Estate Professional’) for consumers that includes information about commissions, contracts and business models.”

The first important thing the guide states is that real estate commissions are negotiable. Neither the law nor any real estate association has set a fixed, governed rate for commission fees.

“A traditional full-service broker generally charges more than a nontraditional broker, and if you hire a nontraditional broker you can expect to pay higher fees if you purchase more services.”

However, if you hire a nontraditional broker, you should expect to do more legwork than if you hired a traditional broker.

“For example, some nontraditional brokers offer a Multiple Listing Service-only package, which includes listing the property on the local MLS for a flat fee: you would be responsible for every other aspect of the transaction, like advertising, running open houses, negotiating with buyers and coordinating the closing.”

This is risky just to save a few bucks. Advertising and operating an open house takes a lot of time and creativity alone, but negotiating price and coordinating the closing by yourself is very dangerous since one misplaced signature can cost you thousands of dollars. Additionally, the buyer may be experienced and try to sneak some terms and fees by you.

Then again, you can’t just hire a real estate broker and take their word that they will do what’s in your best interest to sell the home.

“Also, the four-page FTC guide suggests that sellers may want to ask about or negotiate a termination clause in a written contract in case they are not satisfied with the broker's services. And sellers are encouraged to ask about the commission that should be offered to another broker who finds the buyer. Sellers should also ask how the home will be marketed, and whether the listing broker plans to use some combination of multiple listing services, newspaper ads, open houses, and popular Web sites, for example.”

The guide assumes that sellers know the best way to find a real estate agent or broker, through a personal referral. Family and friends will not refer you a shady lender and unfortunately there are a few predatory lenders out there and they know when the seller is uneducated about the process.

So, go on the Internet to gain as much basic knowledge about what is involved in the selling process and “Interview several real estate brokers/agents to learn about their experience, track record, style and market knowledge. Expect a broker to be professional: to return phone calls, to be organized, and to communicate clearly,’ the guide states.”