FSBO or For Sale By Owner is an approach to home selling where the property owner does not contract the services of a licensed real estate agent to preside over the sale. By foregoing the services of a real estate agent, the property owner effectively improves his or her net return on the sale of the home by 2% to 3%.
More home owners are choosing FSBO over the traditional approach of hiring an agent not only because of the promise of high returns. It is also an approach that is doable. Marketing and promoting your home will take the bulk of your time. But once this is ongoing, you should shift focus to coming up with the price.
Pricing can be a deal killer if it’s not done with thought, strategy and purpose. Here are 5 smart ways to price your home for successful FSBO:
Visit Online Home Valuation Sites
Online home valuation and dedicated For Sale By Owner sites are great sources for getting ideas on how properties in your area are being priced.
Some will provide with information on number of visits per area and average sale price all in comparison with national statistics. There are also online valuation sites that can give you an estimate on your property.
Comps are summaries that show comparisons on home prices over the last 6 months. You can purchase the information from real estate agencies or some online websites.
With comps, you have to find properties that have similar features to yours so you can have an idea on how much a home like yours is worth to potential buyers.
Attend Open Homes and Auctions
Open homes and auctions are great venues to get more concrete ideas on pricing. Talk to buyers and brokers and find out how they arrive at their purchasing decisions.
You will also get a feel of how a real estate transaction takes shape. You can observe and note down the typical behaviors of buyers when inspecting homes.
Hire a Property Appraiser
A good option is to hire a Property Appraiser to give you an assessment of how much your home would be worth in the real estate market.
It may cost you $400 to hire a Property Appraiser but in return you will get an authenticated document to support your asking price. Of course, be wary that buyers may have their own appraisers as well.
Contract the Services of a Desk Appraiser
A Desk Appraiser is a much affordable option than a Property Appraiser. He or she will not visit your home. Instead the Desk Appraiser will pull together a comp summarizing the sales prices of homes in your area within the last 6 months.
The Desk Appraiser will assign a range value and it will be up to you to figure out where your home falls in the price range. A Desk Appraiser will typically charge you $80.
The price of your home will determine whether you register a sale or you will stay in the property market longer. Keep in mind that it is better to have your home sold as quickly as possible in order to get the price you want. The longer it stays in the market the lower becomes its perceived value.
A good idea would be to hire the services of a Virtual Assistant with the experience and expertise in the real estate industry. The real estate VA may be able to put together comps, make a CMA or research pricing at online home valuation and FSBO sites.
When it comes to pricing, do not identify a price range based on how much you want to earn. It must have good basis and references in order to make it more realistic and enticing to prospective buyers.