For Sale By Owner – 2 Quick Sources For Setting Your Home’s Sales Price
One of the first steps a for-sale-by-owner must decide is a sales price, and the sooner the better. You can’t very well begin to show your home without some idea about a sales price!
There are several sources you can call on to help determine a price. We will take a look at two of these in this post. However, before you begin the task of setting the “right” price for your home, a word of warning.
Most for-sale-by-owners naturally want to get as much as possible for their home. They may be using a portion or all of that money to purchase another home. They may be trying to squeeze every little bit of equity they can to create some profit. They may also be faced with negative equity, where the present value of their home is less than the mortgage owed. Unfortunately, this is common in today’s real estate market.
So which of the above scenarios will the buying public respond to the most? Warning…the answer may sting. None of them! The buying public is mainly interested in what they will have to pay for the home, not your profit or loss!
The point is, be prepared to have the market set the price for your home. You may stand rock-solid on a price, and demand that you get that price or you won’t sell. But if the market says it’s too high, you may be sitting on your home a lot longer than you wished. And a prolong period on the market can have a negative effect.
So how can you go about determining a price that will make your home attractive to a perspective buyer?
One source is your local real estate company. If you know an agent, you might seek some advice. They have more market data at their disposal and can at least offer a price range for you to consider.
But, don’t be surprised if you’re met with some resistance. After all, their job is selling real estate for a commission, not helping you for free. They probably won’t give you a hard figure on your home for liability reasons. So, you’ll have to settle for a range.
You can use that information along with pricing information gathered from investigating your local newspaper’s classified real estate section, to make your final sales-price determination.
Another resource is your local real estate appraiser. They are trained to extract data from the market to make a reasonable assessment of real estate value. Appraisers are used by every mortgage lending institution to give an opinion of value. It’s part of the loan process.
There is a fee associated with having an appraisal done, so be sure to check around for prices. Your local bank, Mortgage Company, or real estate agent can provide you with a list of appraisers.
If you decide to go with an appraiser, be sure to specify you want a value to sell your home. There are several ways to determine valve of a home. For lending purposes, for a quick sale, etc., so be specific when getting an appraisal.