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Pricing Traps For Unwary FSBO Home Sellers

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

What does your home value at? What would a prospective buyer be willing to
pay for it?

When selling a home FSBO (for sale by owner), sellers often badly
miscalculate the true homevalue in today's market. They have no idea what
their home should value at, so simply think up some ridiculous figure in the
hope that someone will rush in and pay their grossly inflated asking price.

Truth is; if you price your home too high it may take a long time to sell.
The house might start to look “shop-worn”, as it sits on the market
month-after-month waiting for a buyer that may never arrive. If this happens
you’ll no doubt get discouraged as you continue to pay your mortgage, taxes,
insurances etc. When you do finally reduce the price, you may have to sell
it for less than you would have, if you had set the right price in the first
place.

The point is; most buyers will want to know how long your home has been on
the market. If it has been for sale for some considerable time, then the
buyer may think something is wrong with it, or that you are desperate to
sell --- which you might be.

On the other side of the coin; if you price your home too low, you’ll get
thousands of dollars less than you would have if you had done your homework
by knowing the true market value.

So, when selling your home FSBO, it pays to do some research rather than
simply guessing the value. Look around to see what similar homes in your
area have SOLD for, ask some agents to value your home, or consider
contracting an appraiser to give you a more accurate market value.

Here are 4 pricing traps to watch out for:

Pricing Trap 1.

This can be a BIG trap!

Many homeowners price their home based on what some other homeowner is
asking down the street. Your neighbor can ask a million dollars, but it
doesn’t mean to say they’ll get it. The asking price is NOT the selling
price. Base your price on what the market will stand, not on some
ridiculously inflated price that some neighbor might be asking.

People tend to exaggerate when talking about the fantastic “deal” they
pulled off. It’s an ego thing. So, be wary if a neighbor tells you they sold
for ________ dollars. Work on facts, not fiction.

Pricing Trap 2.

Forget about what you paid for your home – it has no relevance to the
current value or what it might realistically sell for in today’s market.

Pricing Trap 3.

Take care valuing your property based on your Tax Assessment (sometimes
called Rateable Value), plus some magical percentage added on for good
measure. Depending on where you live, Tax Assessments can be quite different
from the true market value.

Pricing Trap 4.

What you “want” or might “need” in monetary terms from the sale is
irrelevant. This has no bearing on the market value. A buyer will not be
interested in your personal circumstances. Your home is only worth what
someone is prepared to pay for it, which in most cases will be the true
market value.

At the end of the day, price will determine how quickly your home sells.

If you need to sell your home in a hurry, then in most situations, you will
need to price it at or below the market value.

If time is not so critical, then you can try to get full market value or
above.

A good marketing campaign can only do so much. Price will determine how
quickly your property sells.

© 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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