Setting the Right Price when Selling Your Home "For Sale by Owner"

When you are conducting a home sale by owner, there are many things that you will need to consider. One of the most important parts of the process is deciding how much money to list your home for. Here are a few things to consider about setting the right price when selling your home without going through a real estate agent.

Market Considerations

You need to make sure that you do not overprice your house compared to the rest of the market. Each real estate market is different, and it is constantly changing. When trying to look at market factors and come up with a price for your house, you might want to consider consulting with a real estate agent. Even if you are planning on selling your house by yourself, you should be able to find a real estate agent who will talk with you about your property.

Many real estate agents will do a free comparative market analysis on your property. This is a document that an agent will prepare based upon information that she has access to in the local real estate market. She will look at many different recent sales of properties that are similar to yours. She will look at how long it took these houses to sell, and then she will make a recommendation as to how much you should sell your house for. This is typically a very detailed report that has pictures of the comparable properties as well as other information about the local real estate market. This can be a very valuable resource when setting the price of your home.

Owner vs. Agent Listing

Something else that you should consider is the difference between what you might list the property for if you were selling it through a real estate agent and what you should list it for given that you are selling it on your own. When you use a real estate agent to list your property, you will have to pay a real estate commission once you sell the property. Typically, this will take six percent out the price of your sale. If you are selling the house by yourself, you will not have to pay anyone this commission. Therefore, you could choose to reduce the price of the house by six percent if you want to sell the house quickly. You could also choose to leave the house at the higher price so that you will have some room to negotiate once you find a potential buyer.

Start High

When you are setting the price for your home, you should always start out by listing it on the high end of a price range. When a potential buyer comes along, he is going to offer you the listing price or less than that number. He is never going to go up from the listing price. This means that you should start out a little higher than the amount that you would actually take for the property. At that point, you will be able to negotiate downward.

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