Appraisal News For Real Estate Professionals

2006/04/06

Tips For Selling Your Home - FSBO

Homes that are listed For-Sale-By-Owner, without the assistance of a real estate agent, are known as FSBOs (pronounced FIZZ-BO). Selling your home "on your own" will require a significant amount of "homework" if you're going to do it right. One piece of advice that is consistently given by the FSBO experts? Do NOT "Overprice" Your Home! It's very hard to be objective about your own home because of your emotional attachment to it. As you read through this tips, from a variety of FSBO experts . . . . See if you can find the "common thread"! Don't SELL Yourself Short FSBO Basics suggests: "If you are selling your home without OR with a real estate agent you should get an appraisal before you set the selling price. A real estate agent's market analysis will get you in the ball park but do you want to stumble around in the dark with your hard earned equity? I know a retired couple that set their selling price based on the agent's analysis. The house sold in three days and the appraisal [for the lender] was $20,000 above the selling price. It can be just as bad if you price it too high and it doesn't sell. An appraisal will have to be done anyway. Why not get it upfront so you can protect your equity?" "Keep in mind that no two appraisers will come up with the same exact value to the penny. Market changes and sales in your neighborhood can impact the value in a short period of time. However, it is far more accurate than a market analysis. Don't sell yourself short. Having an idea in what is involved in appraising a piece of property can greatly help in maximizing the appraised value and avoiding costly details and re-inspections." Pre-Listing Advice and Preparation The Real Estate Perfect blog in there post "Top 10 FSBO Tips to Selling Your Home by Owner " says; "There are only two legitimate and well-recognized ways of determining a fair market value. One way is to contact a real estate agent or broker to provide you with a CMA otherwise known as a comparative market analysis. " "The best and most accurate way of determining price comes from a full-blown appraisal done by a professional real estate appraiser." From the Death & Taxes blog; "Before your home is placed on the market, a good realtor will talk extensively with you about setting a listing price, taking into account things like sales of comparable homes and the state of the local real estate market. To this end, I think it’s a great idea for FSBO sellers to spend $300 or $400 to obtain an appraisal of their home by a licensed Illinois appraiser. " "People using the FSBO approach are notorious for listing their homes at a price that’s unrealistically high; instead of letting your ego or lack of market knowledge get in the way, find out what your home is really worth. You will also want to put yourself in a prospective buyer’s shoes, and think about what repairs and/or improvements should be done to the home before it’s put up for sale." Don't Overprice Your FSBO Home The FSBO Listings blog says, "Sure, you can overprice your home and have it sit on the market for months, if not years. But aren't you trying to sell your home?" If so, just follow these simple steps:
  • Get your home professionally appraised.
  • Set your price reasonably around that appraisal.
  • And don't get greedy! Because that is the number one reason people do not successfully sell FSBO.
Tips For Pricing Your Home from the
Sell Fox Valley Homes blog:
  • Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?
  • Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
  • Consider your contingencies. Do you have special concerns that would affect the price you'll receive? For example, do you want to be able to move in four months?
  • Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home's value. Be sure to ask for a market-value appraisal.

To locate appraisers in your area, contact The

Appraisal Institute directory , The REALTOR® Appraisal Section directory or the XSites Network for some recommendations.
  • Ask a lender. Since most buyers will need a mortgage, it's important that a home's sale price be in line with a lender's estimate of its value.
  • 'Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.
  • Know what you'll take. It's critical to know what price you'll accept before beginning a negotiation with a buyer.

An Appraiser's Point of View Brian J. Davis, RAA, owner of

Brian J. Davis & Associates says, "Owners often have an inflated opinion of their home's value and an appraisal helps them to realistically price their home to sell it quickly. An overpriced home will not attract buyers, which means no offers and no closing and that you have wasted valuable time, money, and efforts. In addition to the question How Much?, there may be other important questions to ask yourself before listing your home. Questions like:

  • ''Would it be better to paint the entire house before we sell it?”,
  • ''Should I replace the carpeting?'',
  • ''Should I complete my basement remodeling project?''

Many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect (Cost = Value). While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense, right before one puts the home on the market!

Appraisers can step in and help you make an imformed decision. Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells for. Appraisal fees are based on efforts to complete the report and not a percentage of the sales price. So a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

The OurAppraisal.com site offers a large selection of links to FSBO related Web sites to help you find answers to many of your questions. Here are some additional helpful resources:

Online Property Presentation , Sell Your Home Online Video , Pre-Listing (FSBO) Appraisals

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