Setting A Selling Price In A Fair And Easy Way

In a For Sale By Owner (FSBO) transaction, you are faced with two options in arriving at a selling price: you can hire an appraiser or set the price on your own. Getting an appraiser of course may cost you some bucks, so it can defeat the purpose of your going FSBO in the first place. But while setting the price on your own can work in terms of not having to pay an appraisers commission, it can spell some trouble. Most buyers, owing to their personal attachment to the house and inexperience in sales, tend to price their homes if not too high, too low.

The price defines the flow of the whole selling experience. Put another way, the price determines the success of the sale. Too high, and you discourage potential buyers. Too low, and you get less than what your house is actually worth. When selling a house, you should pin down a selling price that can benefit both you and the buyer. Some kind of a win-win price you gain, the buyer gains.

How much is your home worth?
The amount you bought the house for may not exactly determine its current value. The challenge now is to determine its current value using timely and relevant factors. The size of the house and lot, for instance, can say a lot about the value of the property. Definitely, a three-bedroom house is more costly than a two-bedroom. More so, if it has added and detached facilities like a car port, gazebo, and pool. But although a price-per-square-foot formula is still a general way of home valuation, there are other considerations you should take into account.

For one, you can determine your home's value by its location and proximity to structures and establishments. If, for example, the house is near the school, church, hospital, and other public facilities, it is generally fair to price it a little high. If you have made improvements and additions, you can also consider them in your pricing. The entire property should as well be in an agreeable condition to ensure you of a good price.

The present market condition is also a reliable benchmark to derive a fair and realistic price. If there are favorable changes in the property market, say the mortgage interest rates are low, it is most likely a good time to sell a property at a bit high price. The trick here is to keep abreast with the changes in the property market to make necessary adjustments in the price.

It is important to consider the sales of comparable homes in the same neighborhood. Having a comparative analysis brings you to a price close to the actual value of your home. So in case there are open houses in your neighborhood, it would help if you go and talk to the hired real estate agent (or the owner himself if he is also into FSBO) to discuss how he arrived at such a price.