How to Set the Right Price for FSBO House
Of all the problems our FSBO will encounter, pricing their house correctly and accurately is by far the most crucial. The wrong price could cost them thousands of dollars any way you look at it.
Here’s why: A price that is “too low” will result in a “net” that is thousands less than they could have gotten with a little research. A price that is “too high” will cause the house to stay on the market for a longer period of time and quite possibly…never sell!
Not selling means paying more mortgage payments, taxes and, insurance until the FSBO lowers the asking price to what the market may have supported in the first place. In addition, if the house sits on the market for too long it will get “Shopworn”. The FSBO will get discouraged and think about giving up altogether.
As FSBO Professionals, we all know the only way to determine the correct price for a house is what comparable houses have recently sold for and been recorded for. (i.e., houses nearby and similar to this one that have recorded sales prices at the courthouse).
The sale prices that are recorded are the prices the local real estate market will bear in connection with this house. There is no other reliable benchmark with which to base a good pricing decision.
The price that your FSBO will receive for his/her house is going to be about what others have gotten in the recent past for similar properties. Without a doubt, a full blown appraisal done by a Certified Real Estate Appraiser is the best way for arriving at a price to sell your house.
A full appraisal involves a property inspection by the appraiser. He will look for defects and benefits and will complete written report with pictures of your house and the houses used as comparisons.
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