PRICING YOUR PROPERTY
Two of the three biggest mistakes FSBOs make is either pricing too high (usually) or pricing too low (occasionally). This section will hopefully keep you from making either one of those mistakes.
Buyers are more sophisticated than ever before. They come into the transaction knowing as much, or more, about your property than even you — thank you, Google. They also know what your house should sell for and will not pay more. As a matter of fact, many FSBO buyers are looking for a deal.
There’s an adage when it comes to selling your own home. “Two people can’t save the same dollar”. Of course, that’s referring to commissions.
Buyers know you’re not paying commissions to an agent, so they expect to save that money. So do you. Don’t be surprised if offers start at least 10% below your asking price. This is to compensate for the fact that you, the seller, aren’t paying real estate fees. Have your comparables and any other information you have ready to defend your price.
In truth, someone is going to pay commissions, either you by way of a reduced price or the buyer by paying your price. When deciding on an asking price, consider that.
How do you price your home? There are only three methods. 1) Have an appraisal done by a real estate appraiser, 2) have your home evaluated by a real estate agent, or 3) arrive at a price using your own methods. What your competition is asking is irrelevant, and if you match their prices, you will be right in the middle of the over-priced pack. One of the very few ways you can stand out from the rest is through pricing.
Here are a couple of tips. 1) Pick an odd number. Everyone asks for $XXX,900, pick $XXX,987 instead. 2) Determine the price range and ask a figure as close to the bottom of that range as is comfortable for you.
Pricing your home will not be easy. On this site, you will be offered a program that can really help you. There is a tool you can use called “My Comparables” that will provide you with properties that have features similar to yours. You will be able to see the average sale price, the average sale price per square foot and how close the comparable is to you.