Selling Your Home Yourself ? Pricing It Appropriately

When you're selling your own property, whether it's a house, townhouse, condo, apartment, a finished lot, raw land, a farm, a ranch, or whatever, the first thing to get right is the price you ask for it. If you work with a broker, the legwork is done for you. When you work as a FSBO (for sale by owner), you need to figure it out yourself. Let's look at how to do just that.

Setting a Price

First, don't make the mistake of looking only at what you need to get out of it. It's important to know that, of course, but that number may, or may not, have any relationship whatsoever to market price. It may be lower or higher than market price. The first is situation is great. The latter may require you to rethink whether you want to sell your property at this time.

If you price your property below market price, it'll be snapped up quickly. The problem, of course, is you'll leave a lot of money on the table. This will lead to a lot of seller's remorse.

If you price your property above market price, it may sit there unsold until the cows come home. If it's priced very much above market price, people won't even come and look at it. The market place talks and it talks loudly.

So What's Your Goal?

Market price is nearly always a range of prices -- high, medium, and low -- not an exact price. You want to price yourself near the top of the market price range for your property. That way, you'll have flexibility to negotiate price if need be.

The only exception to the above scenario is if you're in a hurry to sell your property. In that situation, you should price yourself near the lower end of the market price range. Even if forced to do this, make sure you leave some wiggle room to negotiate with a buyer. Buyers will always assume the listed price is negotiable.

How Do You Determine Market Price as a FSBO?

The first way is the simplest and most expensive. Have it appraised by an appraiser who works with one or more mortgage lenders. Call the firm who initially issued your mortgage loan and ask who they use in your area. Be sure the appraiser knows your purpose is to establish the asking price for a sale.

Using an appraiser can cost a few hundred dollars, but it can be money well spent. In addition to helping you price your property, it can also be helpful to show a buyer with whom you're negotiating that an appraisal supports the asking price.

If you live in an area with a tight pattern of sales prices, you can check the price of sales in your neighborhood over the last three to six months. This is particularly true if you live in a subdivision with houses in a narrow range of sizes and styles. Many jurisdictions have this information online. If not, it is a matter of public record and should be available at the courthouse. The more individualized and unique your property, the more difficult this approach. With a little work, however, you can learn a lot.

Another method for establishing a price is an online search. If you search for "pricing + house + your state," for example, you should find sites that will help you price your property. Some of these use real estate agents and brokers as resources, and that leads us to another option.

It's really unfair if you don't intend to use a broker to help you sell your property, but if that's your fall back position (if selling on your own doesn't work out), you might invite a broker to do a market analysis of your property for you. Be up front. Explain that you're going to try it on your own first.

Even under those circumstances, many brokers are willing to help you evaluate the market price of your property without any charge to you. They also usually give you a presentation of how they'd go about marketing your property should you decide to use them. Listen to that carefully, too.

You can start evaluating whether you want to work with this person if you're not satisfied with your FSBO efforts. You also may very well pick up marketing ideas you can implement yourself.

A Note of Caution

Don't rely too heavily on what neighbors tell you in social situations about the sale of their own and/or other properties in your neighborhood. Listen, of course, but be aware that they often just know the original asking price and the fact that there's a buyer in the picture. They don't know that the asking price was lowered because of the condition of the house, a redecorating allowance was given, etc.

Don't talk to a neighbor and then think, "Well, that house sold for $X, my house is in much better condition; therefore, I should be able to get $X + $Y." Maybe so. Maybe not. Base your pricing decisions on the most solid information available to you, not neighborhood gossip.

If you base your pricing decisions on solid information and use good common sense, you should get a good result. In this case, a good result means a quick sale!

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

---

Real Estate Investing and Home Ownership

If you already own your home, you will probably make... Read More

Not Everyone is Buying or Selling, Some are Doing Both

As if one real estate transaction is not hectic enough?... Read More

Selling Houses Fast: Basics of Design & Color Psychology

Fixing up houses to ready them for sale includes a... Read More

Why I Love Country Living

As somone who has lived in both places, I can... Read More

Property Investing Secrets 9

Property Investing: Here Are Two Important Tactics You Must Do... Read More

Seller Objections To Lease Purchase

A large percentage of the mail we receive are from... Read More

Real Estate Negotiation Secrets

When you bought your home, you offered less than you... Read More

How To Find Your Dream Home In Belize

Shopping for property in Belize is not as simple an... Read More

Buying Houses: Types of Bargains to Find

To make a good profit in real estate, you must... Read More

Quality of Life in Sussex County Delaware. Facts, Statistics, Observations and even opinions!

We Sussex Countians are fortunate in many ways as we... Read More

Before You Buy A House ? Top 10 Tips

There are serveral things you need to think about and... Read More

Real Estate Problem Solver

IntroductionThere are many areas one can invest in. Since I... Read More

If You Cant Afford to Retire...Move

According to Warren Bland, PhD, an award-winning author and geographer... Read More

How Can Real Estate Investors Profit From The Internet?

The Internet is a powerful marketing tool, but just how... Read More

A Crash Course On The Payout Options Available To You When Selling A Mortgage Note

Okay, let's take a look at the typical payout options:Full... Read More

A Log Home Story

Solving problems while maximizing valuesThis story has a few good... Read More

Sellers, Are You Having A Hard Time Selling Your Home?

Sue and Chuck DeFiore have the perfect solution for you... Read More

Choosing a Realtor

Purchasing a property, either as an investor or as a... Read More

Selling Your Home ? What Can Go Wrong With Title and Lenders

If you're selling your home, there are going to be... Read More

How To Realistically Get Started As A Real Estate Investor

When it comes to real estate investing, most beginners find... Read More

The New First Impression in Home Selling

As an ASP Home Stager® I know how important curb... Read More

Real Estate Wealth Protection Through Short Sales

Is a sharp correction in store for the real estate... Read More

Do You Want To Sell Your Rehabs Fast?

That's an obvious question ? we all do! So what... Read More

Investment Property Part 2 of 2: What You Need to Know Before You Buy

Welcome to the second portion of a two-part series on... Read More

Real Estate Investing: America Rents

Most people in America rent a personal dwelling!Just think how... Read More

The Real Estate Bubble-When Will it Burst?

More and more individuals are realizing that real estate is... Read More

Transforming Doghouses into Dollhouses

Successful real estate investing depends largely on a correct assessment... Read More

I have a buyer for your property and I can sell it now!

A Realtor has just talked to you and said, "I... Read More

Property Investing ? Port Melbourne Life on the Edge

Property investing prices pick up following a cooler winter last... Read More

The Real Estate Market In Spain: Making Profits Out Of Sand

The Real estate market in Spain keeps gaining momentum and... Read More

Property Investing - Am I Buying for Profit or Prestige?

All of us have emotional preconceptions and assumptions. They are... Read More

Various Aspects Of The Lease Purchase Business

In a previous article, we wrote why we believe that... Read More

Protective Covenants ? Buying A Home

In addition to zoning, some properties have covenants recorded at... Read More