Knowing how to set the price of your home is one of the prerequisites to selling FSBO properties. Take note that buyers always look at selling prices of for sale by owner properties before they finally decide to make an offer. You don't have to worry about how to set prices as there are easy steps to follow.
Learning about how to set prices will make you find the right buyer for your FSBO property. You cannot just set a high price or buyers may just run away from having a transaction with you. Well, setting the FSBO price too low will also be at your disadvantage as you may lose earnings.
5 steps to set FSBO property prices
As the sole person taking charge of selling FSBO properties, you are responsible for setting the price for your home. You should know how to do it if you want to set an asking price that is comparable to other homes. The following steps will help set FSBO prices:
1. Familiarize yourself with your competitor. It is best to make online and offline searches. In both venues, you should compare your home with other FSBO listed properties. Check on those that are the same size and have the same number of bedrooms as yours. Learn about the prices they have set so you will have the idea for how much you will sell your FSBO property.
2. Attend open houses within your area. You do not have to necessarily visit for sale by owner property. What you need to do is visit open houses to see how your FSBO home compares to others.
3. Get ideas from properties which were sold just recently. This can be helpful in knowing the market value of certain FSBO properties at the moment. You can then take a peek at the price and learn why they became saleable in the market. These FSBO or Flat Fee MLS listings may be available at local government offices near you. They can also be found through the net or through the public assessor's office.
4. Assess your FSBO home. With all the listings you have gathered above, it is fair for you to judge on how you should sell your FSBO property. Be honest enough in making your assessments. Ask yourselves some questions like: “What is my home's edge over that of others?" and “In what condition is my house compared to those that are offered by other people?"
5. Always make sure you are working on setting your FSBO price with that of what is prevailing in the market. Simply put, set the FSBO property's price based on current assumptions. You cannot just look back to how the real estate industry fairs three to five years ago and make that your basis to set a cost on your property.
Always take advantage of the Flat Fee MLS fact that you can sell your property by your own. Remember that your property should be priced fairly. You do not need to add up the possibility of paying for a commission with the cost you will set. After all, you do not need an agent in FSBO listings. What you need is to use a flat fee MLS instead.