Setting The Asking Price

Setting The Asking Price

For sale by owner homes are often a positive choice for both buyer and seller.  The key for the seller is to be able to set a fair asking price for their home. Sometimes this can be one of the biggest difficulties for the seller because they look at their house with a personal bias.  They tend to see the time they have spent in fixing up the house, the little extras that they have added, or the special attractions that their house may offer.  In looking at all these factors, people tend to think their house is worth more than it is, and they set the asking price too high from the start.  This can create a disappointing process and discourage many potential buyers.  However, with a little bit of knowledge and a plan, this problem can be avoided and the stress of this decision can be eliminated.

The first step in making this decision is to find out what the selling price has been for comparable houses in your area. These houses need to be ones that are similar to yours in basic square feet, rooms, and property. In finding this information it’s important to realize that the points about your house that you feel are the strongest, may not be something that would cause others to want to pay more. A big flower garden or a swimming pool might seem special and look nice, but they shouldn’t have a strong impact on the asking price.  In the past locating selling prices of nearby homes was a more difficult task for the ordinary person.  However, with the easy access to the internet, this task has been made a lot easier. You also have the option to consider talking to a real estate appraisal agent about the sale of other similar homes if you would like to have another opinion.

After locating the prices of similar homes, it’s also important to take into consideration other fees.  You will want to figure in the costs of closing on the house and whether the buyer or seller will pay these fees. Also important is to figure out how much cash you will want for your house.  However, be careful about working backwards in this process. In starting with how much cash you want, you may end up asking more than what is reasonable for your house, which is the major cause of why for sale by owner homes fail.  It is extremely important to start with the average sale of comparable homes and then work forward from there.

Other factors to consider when selling your for sale by owner home are whether you can offer seller financing, land contract options, or rent to own.  Offering a variety of options will often allow you to get more money for your house. However, if you choose to offer one of these options, it is important to use a lawyer who is familiar with setting up these terms so as to prevent complications later.  A financial adviser can also help you come up with proper interest rates for these options.

Selling your house for sale by owner offers great benefits to both the buyer and seller.  This option can often result in a better deal for both parties. Starting out with a fair and accurate asking price is one of the most important steps to making this a successful venture.  Being prepared ahead of time with the right information will help make this important task a little easier and lead to much better prospects of successfully selling your home.


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