Selling Your Home Yourself Pricing It Appropriately

Selling Your Home Yourself Pricing It Appropriately



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!




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