Many people choose to sell their homes themselves in order to avoid paying commission to a real estate agent. While you can save a great deal of money with a For-Sale-By-Owner home, you also become responsible for dealing with all of the logistics of selling the house, from reviewing the contract for sale to advertising and marketing the home. You also need to make the choice on how much you are going to price the home at.
How to Set the Price of Your Home When You Sell It Yourself
The decision on how to price your home is one of the most important choices that you will make when trying to sell your house. If the home is priced too high, you may turn off potential buyers and get few people coming to open houses or to see the space. If your home is priced too low, then you will leave money on the table and will not get as much for your house as it is worth.
Without a realtor to help you to decide on the appropriate price, you will need to do some research on your own to find the right target. In order to do this:
- Take a look at what other homes in your area have recently sold for. You should be able to find some houses that are in a similar location, that are a similar size and that have a similar amount of land. This can give you a reasonable idea of what the market is like and what your home should sell for.
- Use online estimating sites. For example, Zillow.com will provide you with an estimate of what your home is worth based on market trends in your area. The Zillow estimate and other web-based real estate estimators are based only on general information and are only as accurate as the information available to them. They also don’t know specifics about your home such as what upgrades you have done or what condition the house is in. As such, these estimators are not exact. They can, however, give you some idea of what your home may be worth.
- Look at what other homes in your area are currently selling for. Being the most expensive home in your neighborhood is usually going to be a big disadvantage that makes it hard for you to sell your house. Being the lowest cost house, on the other hand, can make your home seem like a bargain but can also result in you getting less than you deserve. You should try to price your house in line with what is reasonable based on the other homes around you. If you want a quick sale, then you may opt to go on the low end of the market.
- Consider having a home appraisal performed. There is a small cost to having your home approved (usually around $200 to $500) but you can get an accurate estimate from a real estate professional. Buyers will need to get the home appraised in order to secure a loan from the bank, so it can also be helpful to have a professional appraisal so you won’t waste time pricing your house higher than a bank will be willing to grant a mortgage for.
By taking these different steps, you should be able to arrive at a reasonable price for your home so your sale can be a successful one.