For Sale By Owner - Selling Your Home for the Right Price

When I first started working as a Real Estate agent, my broker told me that most “For Sale by Owner” sellers eventually agree to have an Agent represent their home after their house has been sitting on the market for awhile without any offers and little in the way of interest. The most common reason for that lack of interest? An unrealistic asking price.

Often, FSBO sellers are so attached to the home they’ve lived in for many years and its many advantages, that they fail to consider the market forces at work and set an asking price far above what other nearby houses are currently selling for in today‘s real estate market. Sometimes, the home owner is setting an asking price based upon what kind of prices houses were fetching six months earlier and find themselves wondering why no one is interested.

The problem is, the real estate market moves quickly and information that is six months old is quite stale. You need information on the current market in order to set a fair asking price. But there’s an easy solution. Within days of advertising your home “for sale by owner”, you’ll usually find that more than one Realtor or Broker will contact you about your FSBO property. They’re interested in getting your listing and will entice you with free advice and a Comparative Market Analysis (CMA) for your home. My advice? Take them up on their offers. It doesn’t take long for an Agent to do a CMA because they have all the tools to hand. So let them help you and then use that information to set the asking price for your home. Just be certain that you state upfront that you plan on marketing the home yourself so there are no misunderstandings.

Finally, set your asking price based on real information. Do not go by the asking price of houses for sale in your neighborhood. Real estate agents often have their hands tied by unreasonable sellers when it comes to the asking price, so be sure you know actual selling prices for your neighborhood. Your local paper will generally have a list of local home sales each week. Spend a month or so monitoring actual home sales and forget about asking prices for homes that have been sitting on the market for months at a time.

Just remember: the research you do today will save you time and trouble tomorrow and will ensure that your property is positioned to sell swiftly. Frequently, time is as important as money, especially if you need to sell your current house before buying your new one.