Do You Need a Realty Agent to Sell Your Home? : Home Sellers: If you work without an agent, you must be prepared to handle a wide range of legal and financial matters yourself, or hire a lawyer to help you.

Most home sellers are confronted with the dilemma of whether or not to hire a real estate agent to market their home. The primary reason for not using an agent, of course, is to save the sales commission. For example, on a typical home sale of $100,000 with a 6% sales commission, the saving is $6,000. Or is it?

Home mortgage lenders report an average of 11 mortgage loans made on sales handled by realty agents for every “for sale by owner” (FSBO) sale. There must be solid reasons why 11 out of 12 home sellers hire realty agents. But consider the pros and cons.

Setting the right sales price. After your home is all fixed up and ready to sell, the first step is to determine its market value. You may want to hire a professional appraiser to prepare a written appraisal. But a double-check with local realty agents may be wise, especially in appreciating or declining markets.

Even if you are thinking of selling without a realty agent, it pays to invite at least three local realty agents to evaluate your home’s market value, using a written “comparable market analysis” form.

Select agents to interview from recommendations by friends and relatives, agents who “farm” your neighborhood, and agents whose “sold” signs or newspaper ads in your area attracted your attention. Be sure to interview agents with both local independent firms and nationally franchised brokerages. What is important is each agent’s success record, not the name on the door.

Ask lots of questions of each agent about their fees, services, list of client references and anything else you want to know. Inform them you are undecided about listing your home with an agent and want to know why you should list with that agent.

Make each agent persuade you. However, beware of any agent who estimates an abnormally high sales price for your home without justifying it.

After each agent has left, phone their references--the previous sellers--to ask, “Were you in any way unhappy with this agent and would you list your home for sale with the same agent again?”

Don’t be afraid of young or new agents. They are often eager to succeed and may work twice as hard as a longtime salesperson who now may be taking life easy.

Before deciding if you should list your home with an agent and with which agent, here are the factors to consider:

Advertising. Can you write newspaper ads about your home? How much will advertising cost? Who will answer the phone? What information will you give to callers? Will inspections be allowed only during limited hours or will you leave work to accommodate an interested caller?

Will you hold and advertise weekend open houses? Do you understand Regulation Z Truth in Lending limits on advertising finance terms, such as down payment, interest rate and other finance conditions? Are you going to put up a lawn FSBO sign? Since you have only one home to sell, how can you compete with the hundreds of homes realty agents have available in the multiple listing service?

Financing. Are you familiar with and can you explain mortgage finance terms to buyers? Which local lenders offer the best terms and are the easiest to deal with? What programs are offered by FHA, VA and state mortgage plans?

Are you aware of land contract benefits and pitfalls? Can your existing mortgage be assumed? Does it have a prepayment penalty? How much of an earnest money deposit should you require? Who will hold the buyer’s deposit money?

Legally binding contract. Are you able to negotiate the sales price and terms in face-to-face negotiations with the buyer? Do you know how to handle the bargain-hunters who prey on inexperienced FSBO sellers?

Do you have an attorney who has advised you on essential terms to include in the contract? Can you qualify a prospective buyer to be sure he can really afford to buy your home and is not wasting your time tying up the property?

Sales terms. Can you negotiate with the buyer about the sales terms and financing? Who will pay the closing costs, such as title insurance, transfer fees, escrow charge, attorney fees and other negotiable expenses?

How will you handle tax pro-rations, move-in date, rental for hold-over occupancy, personal property to be included and excluded, disclosure of hidden defects (to prevent future liability to your buyer), and compliance with state laws?

Urgency and security. Do you need a fast sale to avoid making loan payments on two homes at the same time?

Can you screen out potential troublemakers and even thieves from the serious buyers who will phone you? Can the home be shown at any time or only when you are not at work?

Closing the sale. Are you acquainted with local title settlement closing procedures? Do you have an attorney who will handle the details?

How will the loan papers be processed, old loans paid off, liens cleared and documents recorded?

Times Design Critic Sam Hall Kaplan, whose column has appeared in this space for the past several years, has taken a leave of absence to pursue his interest in design.