If you’ve made the decision to sell your own home, then kudos to you! Being a FSBO (For Sale By Owner) requires a good amount of work on your part, but can be a great way to save money by taking out or minimizing agent commission fees.
As a FSBO, one of your first tasks is also one of the most crucial: pricing your home. Setting your listing price can set the entire tone of your For Sale By Owner experience. Your price must be appropriate and accurate, in terms of other homes in the neighborhood and surrounding area.
Read on and we’ll show you some ways to set your home’s price like a pro…
How To Price A Home
Getting your listing price right is just like being a FSBO itself: it requires a lot of homework and research. You can’t just sit around wondering, “How much is my home worth?” You have to start doing some digging and some legwork of your own.
Luckily for you, a majority of the information is on the Internet, just waiting to be discovered. Roll up your sleeves, fire up your mouse, and let’s start scouring the ‘net.
Create Your Own Comp
Professional agents use “comps”, short for “comparables” to determine home prices. To properly price your home, you need to so some basic number crunching and come up with your own “comp.”
Real estate agents and Realtors have access to tools, reports, and data—but so do you! Start your pricing project by going to popular, high-traffic listing sites such as:
Once you’re on these sites, type in your property address. Depending on how dense the population is in your neighborhood, determine a radius for you to compare properties.
For example, if you live in the suburbs where houses and populations are quite dense, set your comparable radius to 3 miles. If you live in a more rural type of area, set your radius to 50 miles, etc.
Compile a list from these sites that show home listings in your designated radius area. Compare homes that meet the same criteria as yours: year built, square footage, number of bedrooms and bathrooms, etc.
Then you can draw up your own comp to help set your price. Don’t forget to also look at recently sold homes in your area, too. Current listings and recent sales can give you a pretty decent range and starting point.
Purchase A Comp?
It is possible to purchase a recent Comparative Market Analysis from your local Realtor or real estate agent. Not all agents will agree with selling this information, so you may ask around or better yet, find a friend who’s an agent and ask them for help. A CMS from a full-service agent will run anywhere from $100-$250.
If you don’t trust comp numbers or simply don’t have the time to properly do your research, you can always pay a few bucks ($300, roughly) and get your home appraised by a professional.
A professional appraiser will inspect your home, its records and look at sales data in the area to come up with their own “comp.” This should provide a good number to start with when it comes to listing your home for sale.
Another thing to keep in mind is any special features or additions your property may have. For example, you may have a larger lot than some of the other homes in your neighborhood. Or perhaps you have:
- a view
- put in a pool or spa
- a recently remodeled kitchen
- added on a den or a loft, etc.
Take any and all of these “extras” and work them into your pricing. You can’t, however, add the entire cost of these extras into your asking price. A good rule of thumb is half, as in fifty cents to the dollar. For example, if your kitchen’s remodeling costs you $40K, then add $20K to your price. And be sure to highlight these features when you write up your listing description.
Fizber.com Helps FSBOs
Good luck pricing and selling your home on your own. Visit Fizber.com to add some listing and marketing juice to your sales plan. Each free listing also includes a free home valuation, which can definitely help you set your price.