Quite possibly one of the most difficult things to do when selling your for sale by owner home is to set a fair asking price. This seems to be the case because of the wavering definition of what exactly is “fair.” It is quite easy as well as understandable to place a higher value on your for sale by owner home than what is expected, simply due to the fact that it is your home; the home you have cared for and lived in for however long of a time period you have lived in it. You may have replaced the kitchen cabinets or retiled the floors or even have had new carpet put in.
Other things that you might increase value in your for sale by owner home would include the addition of a swimming pool or a nice flower or vegetable garden in the backyard. Unfortunately, all of these things mean nothing in the grand scheme of setting a fair asking price. Well, they may not mean absolutely nothing at all but they will not play much of a role at all in the price that your house demands.
The single biggest reason for sale by owner homes fail is because the owner has set an asking price far above what other houses in the neighborhood have sold for. This is the main determining factor in deciding how high to set your asking price. As was mentioned before, for sale by owner home additions are nice, but simply because the addition was what you had always been wanting does not necessarily mean that the potential buyer will agree with you and want to pay extra for what you felt was a luxury item.
The swimming pool example holds up well here. Someone with no children and who is afraid of water will not want to pay extra money for something that they consider to be a liability. For these reasons, it is important to check out the previous selling prices of homes in your neighborhood. If you require assistance in this matter, it is always a good idea to enlist the aid of a real estate appraiser, however, nowadays; Internet databases make this task easier than expected.
There are a few other things to remember when considering the asking price of your for sale by owner home. It is important to consider all selling costs such as closing fees as well as to consider how much cash you want after the sale. It is a bad idea to start with the amount of cash you want from the sale and work backward to get a price. This complicates the deal and can end up causing you to raise the price unnecessarily.
It is best to consider the fair market value of your for sale by owner home and in order to raise the price a little, you may want to either offer what is known as seller financing or allow the buyer to simply assume the mortgage payments to your for sale by owner for sale by owner home. Seller financing is an option that should be used under the guidance of an attorney in order to draft proper contracts. A financial advisor should be involved as well in order to determine appropriate interest rates.
The asking price should be fair and accurate in order to avoid any unnecessary complications in the sale of your for sale by owner home.