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The Golden Rule For Pricing Your Property For Sale FSBO

By Noel Peebles
Co-Author For Sale By Owner Home Selling Secrets ebook.

Setting a realistic asking price is where most FSBO home sellers go wrong.

The golden rule in real estate is "Price your property to sell!" Now, that
doesn't mean giving your property away for next to nothing... It just means
being realistic and listening to the market. Why? Because, price is usually
the most critical facet in selling a home. Just as you want the best value
for your money, your home buyer will want the best value for his or her
money too.

Unless your home buyer knows something you don’t, or unless they are stupid,
it is unlikely that any home buyer will pay more than what the market says
the property is worth.

Again, there are exceptions to the rule. For example, in some cases a “buyer
frenzy” can develop when two or more home buyers are chasing after the same
property. In such cases, the successful home buyer may end paying more than
the true market value.

However, generally a property will sell for around what similar homes in the
same area will sell for. These are homes of a similar size, with similar
amenities, similar in style, age etc.

MARKET VALUE is what recent sales will tell you your house is worth TODAY!

This is why it is important to price your house correctly. Base your price
around what similar homes have sold for recently, not on some “pie in the
sky” dream. It really doesn’t matter what you “want to get” or what you
“need to get”… you home is only worth what someone is prepared to pay for
it. Recent sales of comparable properties in comparable areas are usually
the best indicator of what someone might be prepared to pay.

Lets face it; we are only interested in ourselves. It’s the old WIIFM –
“What’s In It For Me.” A home buyer really doesn’t care about how much you
might want or need... they really only care what the property is worth to
them.

If you over-price your house above the market value then you might be left
sitting there with all those other over - priced homeowners who can’t sell
either. In cases like this, the agent usually blames the seller and the
seller usually blames the agent.

Fact is; no two homes are exactly alike and that’s why some are easier to
sell than others. For example I sold a house with magnificent harbor views,
2½ minutes from the city center… it was of a similar size and standard to
the surrounding homes. However, I sold it for higher than market value
because, unlike the others, it had drive-on access for 3 cars. That was the
reason I got a higher price.

Rule of thumb is that if a property is in excellent condition, then it
should sell close to the full market value. If the property is not up to
scratch, then the sale price is likely to somewhat less depending on its
condition.

The price a home buyer is willing to pay will generally reflect the
condition of the property. The condition of the property is something that
can often be improved with careful thought and careful use of money.

If a real estate agent is really honest, they will tell you that ‘over
pricing’ is usually the number one reason why a property fails to
sell.

Usually the quickest way to get result when selling a property, is to alter
the price. If your house has not sold because of its condition, either fix
what’s wrong, or alter your price until it does sell. As any good agent will
tell you, “when priced correctly, a property will sell regardless of
condition or location.”

© Noel Peebles, Market Leaders ebooks.

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Noel Peebles is author of the best selling ebook
"173 Powerful Ideas, Tips, Tactics And Proven-To-Work
Strategies To Sell Your Own Home."
For details http://www.forsalebyownerguide.com
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