FSBO
While a real estate agent is the one who will suggest and advice you on the exact asking price of your home as per the existing market condition of the time of sale and the local area that the house is located, you are the one who sets the price, but ultimately, it is the buyer who determines the exact selling price of a home. FSBO is very tricky, especially when it comes to determining an obtainable and realistic selling price that will ensure you sell the home fast. Keep in mind that when a potential buyer is looking for a home to buy, they do so in the price range they know they can comfortably afford, and the one that is within the market range in the locality.
Home buyers of today are more informed that ever before, remember they are pre-approved or pre-qualified, and with the advancement in technology, today buyers enlighten themselves on the process of home buying by searching online, so they come prepared with an overview of the cost of the home. Therefore, if you set an asking price that is way off the hook in the current market, you will simply be scaring buyers away. Most of them will not even bother to place on offer as they would have already assumed you cannot negotiate – this they determine through the impractical listing price that you have determined.
It therefore goes without saying that when a home is priced right, many potential buyers will come flocking in, wanting to have a closer look at the home in question. Simply put, the right asking price generates the expected amount of traffic, meaning it will determine whether you will sell your home at the right time frame. There are very many factors as to why homeowners over-value their property. Perhaps it is because of the prime location, perhaps the homeowner wants to get out of the deal with a good amount in the pockets but the local markets is down or slow, or perhaps the property owner is ill-informed regarding real estate and home pricing, or lacks the basic knowledge of selling a home.
Be advised that if you over value your home, you will miss very many potential buyers, which only means your property will stall in the market. You might also want to remember that the banks do their own appraisal of a property when lending out money to home buyers. Thus, if you overprice your home, the bank can only lend so much, leaving the burden to the buyer to come up with the remainder – indeed an improbable scenario. Be informed and price your home accordingly, even if it means seeking professional help in setting the asking price.
Tags: selling real estate
