How Much is my For Sale by Owner home worth?

One of the most difficult aspects of selling your home, whether you have selected to work with a local real estate agent or take the “For Sale by Owner” (FSBO) approach, is to accurately price the property. It is important to understand that price is the single most important factor in finding a buyer for your home.

Today’s well informed home buyers are particularly price sensitive. It is important to properly price your home or you won't receive any offers, worse, you may not get any lookers.

Determining that optimal price for your FSBO home sale can be challenging. While the homeowner tends to be intimately familiar with the home, there is a tendency to overvalue the home based on that intimacy. It doesn't even matter what you think it should be worth. Ultimately your home is worth what a buyer is willing to pay for it or fair market value. Why would a buyer pay more for your home than a home of comparable size, condition and location?

If the homebuyer is considering the FSBO approach they may want to consider selling below the market price to further enhance the likelihood of selling your home. This price reduction is absorbed in the savings associated with a FSBO home sale.

Another consideration is that prospective of home for sale “by owner” expect the regular commission to be entirely discounted. This tactic can be considered if you are looking to make your home very attractive and facilitate a quick sale.

What is a realistic market price for your home?

One way to determine the value of your home is to request a local real estate agent to perform a CMA (Comparative Market Analysis). This is usually a free service provided by Real estate agents or real estate brokers in an effort to list your home with him or her.

Another option is to do your own home appraisal. Find out what homes similar to yours (real estate comparables) have sold for in your area over the past six months and compare them to yours. There are many online sources that may be able to provide you with sales data on comparable homes in your neighborhood.
 
Another option is to hire a professional real estate appraiser. This individual has access to the database of recent home sales in your area. They can accurately generate a “fair market” price for your home. If you use the price determined by the professional real estate appraiser the actual appraisal can be a very compelling tool to influence a prospective home buyer to put an offer on your home. Be sure not to confuse “asking” price with “selling” price. Asking price is typically 10% higher then selling price.

You may also obtain an electronic real estate appraisal of your home through FreeFSBO.com.

The idea is to make a reasonable list of home sales in your area and their features or specifications then conduct your comparison. The most important considerations are:

  • Square footage
  • Size of lot
  • Number of bathrooms/bedrooms
  • Upgraded kitchens and/or baths
  • Condition of home and landscaping
  • Location

Often this information will accompany the location and price.

Accurately determining the fair and reasonable value for your home is critical to the successful sale of your home, not only to finding a buyer, but to satisfy yourself that you're getting full value for your home.

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