By Frederick W. Jones, Real Estate Attorney

For homeowners planning to sell their home in the Orlando area, the good news just keeps on coming.

While most parts of Florida are slogging through a tough real estate market, existing homes in Central Florida continue to appreciate in value, according to the Attorneys' Title Insurance Fund's Real Estate Index.

Through the summer, average sales prices for existing homes increased as much as 10 percent compared to sales in 2005, despite sales volume falling off significantly.

But one state and national trend Orlando hasn't escaped is the rise in the number of owners squeezed by mortgages, particularly the adjustable rate, interest-only and long-term varieties.

In recent years people signed up for these loans to move into a little bigger house than they could afford with a 30-year conventional mortgage.

Today's lenders are increasing the rates faster than many people expected. More than 5,000 Orlando-area homeowners were in danger of default on their loans in August 2006, according to realtytrac.com, which tracks foreclosures.

These homeowners are at a crisis stage. Homeowners who want - or need - to sell due to escalating loans find themselves facing a challenge - how do you sell a home in a cooling market when you have little equity to offset the expenses of selling?

It's hard for the seller to trim much from the set of fees known as closing costs. And if the house needs some paint or other basic repair to make it attractive to buyers, it's self-defeating to skimp there.

One place where sellers in this situation feel they have wiggle room is by hanging out a "For Sale By Owner" sign, in efforts to save thousands of dollars in real estate commissions. Those owners who have plenty of equity or favorable loan terms may market their own homes too. But whether the homeowner is in a strong position to sell or is pushed into selling before a loan becomes even more unfavorable, there are some important questions to answer when trying to sell your home on your own without a real estate agent.

Do I need to make improvements to the house before I put it on the market?

Selling a home on your own can be an emotional experience. It's hard to look at the place you lived in and see the flaws others may see. It's good to invite a candid neighbor or friend over to give you a better idea of how others will see your house. You may love the pink and black motif in your bathroom, but your friend may helpfully suggest you invest in some white paint. Since the point of selling without an agent is to save money, you probably won't want to redo the kitchen or make other major upgrades. But sometimes relatively small purchases can make a big difference. If you can afford to replace an outdated dishwasher, that's probably worth it. Studies show most purchasers today aren't interested in buying into a repair project.

How do I set the price?

You might hire an appraiser, who will look at your house and compare it to others nearby that have recently sold. Real estate agents can also provide comparable home sales data, even if you're not contracting with them. It's important to set the price right from the beginning. Quite simply, if you overprice your home, savvy agents or buyers won't waste their time looking at it. If you underprice your home, you could lose thousands of dollars in profit.

How do I advertise the house without spending a fortune?

The Internet offers sellers many Web sites that allow you to list a home. Many are free. But as tempting as it is to think you can post a photo and description of your house on a Web page and just wait for the buyers to show up, that's not likely. You'll also want to use low-tech strategies, like posting a yard sign, hosting an open house on the weekend, putting up flyers at the grocery store and asking your friends to let you know if an acquaintance is in the market for a home. Many people who start off trying to sell without the help of an agent wind up compromising and paying a flat fee for the local Multiple Listing Service. However, be prepared to pay the buyer's agent a commission - usually around three percent of the sale price.

How do I put together a sales contract?

Your real estate attorney should draft all the paperwork relating to the sale of your home, making sure everything is legal, complete and does exactly what you intend it to do. Most homebuyers are not aware of complicated state and federal legal requirements and disclosures regarding home sales. You'll need a printed purchase and sale contract, a defect- disclosure form, required and optional inspection forms, a lead-based paint disclosure, proof of building code compliance, energy-efficiency inspection, home owner association or condo association disclosures, etc. - nall of which your attorney can provide. The Florida Association of Realtors and the Florida Bar Association makes available standard contracts, but they are only forms. An attorney will make the contract apply to your specific situation. In addition, your attorney can help you resolve any problems such as those that might come up during negotiations, with the appraisal or the professional inspections; your attorney will also help arrange the closing, including issuing title insurance. Remember, a home sale is a legally binding transaction, and any changes or errors in the paperwork can result in expensive fees and could lead to a lawsuit. You don't want to make a mistake that erases the financial gain you hoped for by marketing the house on your own.

A word of caution though, "FSBO," as it is often referred to when homeowners "go it alone," is not for the faint of heart. Securing maximum value and a smooth closing when selling a home requires a comprehensive knowledge of the local real estate landscape, time dedicated to preparing and marketing your property for sale, and negotiating the terms with prospective buyers. If you're not experienced in real estate transactions, you will need to take extra precaution to ensure your interests are protected throughout the process. Your real estate attorney is an important part of your team in a successful real estate transaction.