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5 Smart Ways to Price Your Home for FSBO

5 Smart Ways to Price Your Home for FSBO

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.

Use Comps

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.

8 Steps to Selling Your Own Home

8 Steps to Selling Your Own Home

Selling your own home will help you generate a higher return on your property because you don’t have to pay the real estate agent’s commission.

And it is not as difficult as you may think!

With a bit of planning and organization, you may sell your home faster than any real estate agent.

Write Down Your Home’s Selling Points

Conduct an overall assessment of your home and write down the features that would make visitors interested in buying it.

Among the important things to consider:

  • Swimming pool
  • Number of rooms
  • Number of toilet and baths
  • Size of garden
  • Capacity of garage

The idea is to pinpoint features and amenities that would make your house an attractive option compared to others in the neighbourhood.

Create Marketing Copy

Using the assessment you made on your house, try to create compelling marketing copy. This is not a particularly difficult task.

But if you are not confident of your copywriting skills, hire a Virtual Assistant.

Virtual assistants are highly skilled and proficient in creating marketing copy. They know the best keywords to use so your marketing copy can easily be found online.

Take Photos of Your Home

Good quality, high- resolution images are a great way to attract more interest in your home.

Hiring a professional photographer is always a good idea but they could be expensive.

If you have a friend who dabbles in photography in his spare time, ask him to take the photos as a way of getting more practice and experience.

Research Online for Comparative Pricing

Pricing is often the deal breaker in many negotiations. While buyers are open to adjusting their bids, your selling price must not be unrealistic.

You can check out a number of home value sites online to get an idea how much property in your area has been selling the last 6 months.

You can also ask a property appraiser to give you an estimate on your home based on current market values.

Sign Up in an FSBO Site

One of the most effective ways to get your house moving in the market is by listing it in a For Sale By Owner or FSBO site.

Thousands of people visit these FSBO sites to look for the best homes at the most affordable prices. You will definitely get a good number of visits in your FSBO page.

If you opt for the free membership, you will have to update the images and text content yourself. Or you could simply designate this task to your real estate Virtual Assistant.

Utilize Social Media

Find out if your neighbourhood has a community page in Facebook or other social media. Ask the administrator of the page if you could join the community.

It is possible that one of the members would know someone interested in buying a home in the neighbourhood.

Remember to link your social media page to your FSBO account.

Schedule Open House Visits

Open House visits can draw in a large number of interested buyers. Do the following before opening up your home for inspection:

  • Conduct general cleaning
  • Remove all personal items
  • Open up spaces
  • Have marketing materials printed out
  • Have the contract of sale ready

Be ready to negotiate at any time during the Open House. You should already have a price range in mind.

Create a Short List of Prospects

If your efforts have allowed you to generate a considerable number of bids, review all of them carefully and identify 3 of the best prospects.

Schedule a day in the week to meet with each prospective buyer individually.

When it comes to selecting the best bid, it’s not just the price that should be considered but also the terms and mode of payment.

It’s very important to keep in mind that it is best to sell your home within 4 months. Otherwise the perceived value may drop.

This is another advantage of selling your own home. You can devote 100% full attention while a real estate agent with all of his or her clients cannot do.