Realtors will tell you that you need them to figure out the right listing price by using a Comparative Market Analysis (CMA). A CMA does offer a lot of good information about real estate transactions in your area. However you don’t need to list your home with a Realtor to get one, since flat-fee websites and FSBO websites offer them.
The key fact in setting your home asking price is to look at what other homes have sold for in your community. The ideal price is set by the market, meaning actual sales.
I know a man who sold a home on a free advertising website who had set his price by driving around his neighborhood and finding out what the asking prices were for all homes listed for sale. He adjusted for different things like:
- Property condition
- Age of the home
- Amenities and special features
- Location
Then he determined an ideal price for his FSBO listing compared to the other homes on the market. He decided he wanted to list his home at slightly under fair market value. His reasoning was he wanted some offers quickly and he thought he might be able to receive multiple offers. Sometimes competing buyers will bid up the sales price by bidding against each other.
If you sell a home that will be mortgaged then the lender will require a formal appraisal from a certified appraiser. You may as well go ahead and get one sooner than later since it can help you set your ideal listing price. This is not something Realtors pay for anyway.
You could go one step further and find out what appraiser is used by a quality mortgage lender in your community. Then you could talk to the lender and make arrangements for a mortgage for your eventual home buyer. Your appraisal will already be done.
You Can Learn the Secrets of FSBO Success by listening to a free audio report full of hot tips on how to sell your home quickly at the highest price. Don’t try it on your own without listening to this invaluable free report, What You Must Know to Sell Your Home Without a Realtor.
Leo J. Vidal, JD, MA, CPA is a real estate marketing expert, and a Realtor who helps property owners use special marketing methods to sell their homes fast.
