Although most people go through a real estate company when it comes time to sell, you also find people choosing a “For Sell by Owner” or FSBO. When using a realtor, he or she would conduct market analysis coupled with an overview of your home to set the price but when selling the house on your own you will need to set the price, which can be a little unnerving. Obviously, you want the best price possible but without pricing yourself out of the market.
As a part of the price setting process, many factors come into play. For instance, there is the home’s location, condition, amenities, fair market value when compared to other similar homes in the area, and so on. Although the price of your home is an important aspect of selling, you need to be realistic. One option is to conduct all the research on your own. Some of this can be done with the internet while some research may need to be done the hard way, through physical investigation.
The other option to help you price your FSBO to sell is to hire an appraiser. This person would do a complete walk-through of your home to determine its worth. In addition, most appraisers know the market and can provide you a good ballpark for pricing. The cost of a good appraiser could run between $200 and $500 but this money is well spent, helping you get the most from your home. Then, once the appraiser has gone through the house, you would also know the items that need to be repaired to boost the price even more.
One of the most important things to remember when pricing your FSBO home is to get the price right the first time. In other words, it is worth taking the time to do all the research first and then price it accordingly than to price and find out you are way off base. What happens is that if you were to price the house too high and it sits on the market for weeks or months, it quickly becomes “old news”, meaning realtors and potential buyers begin wondering why the house is not selling. Additionally, if the price is overpriced and does not sale, and then you turn around to lower it, it immediately tells buyers that you had it priced too high originally. With this, question is whether the house is still priced too high, even though you have reduced the asking price.
Just remember, the location of your home will play an important factor in the price. If you have a home on a quiet street with a school not too far, you will be able to ask more than if your house were sitting on a busy street and possibly far from a school. The condition will also make a huge difference not just in asking price but the time in which your FSBO sells. Before you put the house on the market, take time to fix old faucets, replace damaged flooring, paint walls, put on new kitchen cabinet hardware, and so on.