FSBO - How to Determine Your Listing Price

When you list your home for sale, a professionalThere are many factors why sellers overprice a
real estate agent will advise you on a listing pricehome. It may be the prime location, it could be
according to the market in the area that you live.that the seller needs to get out with some
If you are selling your home on your own, it maymoney in the pockets, but the market in the area
be a bit tricky to come with a realistic listing priceis slow or down. It could also be that the seller is
to sell your home fast. When potential buyers arenot well informed about real estate in the area, or
searching for homes, they will look in the pricehas no knowledge of the basics of selling a home.
range that they know they can afford. Most ofMost activity occurs during the first month of
these home buyers are pre-qualified orputting a home for sale. If you overprice, you will
pre-approved, and they have a clear notion of thebe missing a good pool of buyers, and your home
type of home they can afford. In reality, buyerswill get stale in the market. In addition, consider
are the ones who determine a price in a particularthat the bank will do their own appraisal of the
area, depending on the condition of the market. Ahome, when lending money to buyers. If your
real estate agent may suggest an asking price tohome is overpriced, even if you have a buyer,
list the house, you set the price, but the buyersthe bank will only lend so much, and the buyer will
are the ones who determine the selling price.have to come up with the rest - an unlikely
These days, buyers are more informed than inscenario.
previous decades. With the advance ofIt is better for you to be a bit under the ideal
technology and computers, buyers educateprice that overpriced. At least if you are under,
themselves on the procedures of buying a home,you may get several offers and they could go up.
they search for homes in the internet, and theyIf you are not sure of how to price your home,
come prepared with an idea in price. If you setyou can ask an agent for a free consultation.
your price too high for the current market, youMost are happy to do it, even if you are not
will scare buyers away. They will not even botherlisting with them. An agent can only suggest a
to make you an offer since they think that youprice according to the conditions of the market.
will not negotiate; they determine this due to theReal estate agents do not set prices; you do, as
unrealistic price they see. On the other hand,a seller. You can also see what homes are selling
when you price your home right, you will havefor in your area, and use comparable homes to
many potential buyers wanting to look at yourset a price. In an unstable market, like the present
home. The right price generates the right amountone, this is a bit hard to determine since prices
of traffic. The right asking price will determine ifare all over the place. You may need to consult a
you sell your property in a desirable time frame.professional real estate agent for advice.