I am considering the FSBO approach to selling my house. I have done
extensive repairs/remodeling and consider it to be in good shape.
I see MLS services (http://www.ilflatfee.com /) that will get you listed
on relator.com. (also has PDF files of important disclosure
agreements). (Not spaming, just an idea. )
How do you come up with a reasonable asking price? Homes in my area
very so much in design and features the range from $240K-$320K. Hate
to price it under and loose some $$$, or over and waste my time.
(nw suburbs of IL -in case that matters)
On 10 May 2005 13:24:44 -0700, c email@example.com wrote:
Oh Chris, you're asking questions for which there are no answers.
Let me see if I can help.. at least a bit. I'm a contractor, but
part of what I do is buy homes, fix them up, and sell them for profit.
Been doing it for 20+ years.
Unfortunately, I've been doing it in Canada, so I am not familiar
with what is or is not deductible from what in the U.S.
I always use a realtor -- they save me time, they save me aggravation,
they add an insulation to the negotions, and quite often, they can
get me more than I would get FSBO -- even after their commission
(average 5% before discounts).
That said, there are realtors and there are realtors. In most
places, the licensing requirements are such that my dog could get a
license... so what you are looking for is smarts, drive, enthusiasm
and a willingness to spend on your behalf. Pick one who has been in
the business for ten years or more -- if he/she has survived that
long, he/she probably is somewhat competent.
Here's what I mean: On our last sale, I asked three professionals
(ReMax) to put a value on the house. One said list at 239, sell at
235. Two said list at 249 and take something close to list.
I picked the realtor I wanted ... had her redo her market analysis
with more comparable comparables -- and finally got her to agree to a
list price of $280. We spent a lot of time on the listing
description -- and she brought in two professionals -- a photographer
and a decorator -- at her expense. Her partner thought she was nuts
and opted out of the listing (and the costs).
The house sold in ten days for $275. If I had been going FSBO, I
might have gotten 235 - 240 (buyers always credit themselves with the
commission saved) ... by spending 14 grand, I gained forty or so.
But remember, I had to challenge them with my own view of the market
... and press them for high quality photos .. and a decorators touch.
From the questions you're asking, I'd suggest you focus on finding a
good realtor -- there's just too much of a learning curve: But,
don't be shy about asking hard questions and make darned sure the
comparables they use are truly comparable.
Get a book from the library ..on how to sell your house ... learn
what you can about appraisals, learn what you can about selling.
Essentially, the listing, the pictures and MLS exposure is what you
are buying -- realtors do little beyond listing the property ...
Hey, you may save >$10,000 so spend about $500 and get an appraisal.
Tell the appraiser that you want an HONEST appraisal of Fair Market
Value based upon recent comparable sales in your immediate area. Make
sure to tell him/her that you are NOT going after a home equity loan and
thus you do NOT want, nor need, an unjustifiable inflated appraisal!
Don (a broker in two states)
I wouldn't spend the $500 for an appraisal, but maybe that's just my
personal preference. To determine a selling price, just find a couple of
brokers that offer a free, no obligation, market analysis of what your home
should sell for. Keep in mind that they may all give you different
I suppose so. But as a contractor, I'd been called out many times by
realtors to provide a "free written estimate". We never actually got any of
the jobs - they were just using thew numbers as negotiation tools.
Yep and the advice will be worth the price you paid. Agents are not in
the business of selling property. They are really in the business of
obtaining listing contracts. Expect a pie in the sky high price quote
from the agent, they need you to think they are going to make you a lot
of money, then when you list you can expect offers and or recommends of
lowering your price.
Even if you use an agent an independent appraisal is a good investment
and an excellent sales tool.
For what its worth, I've sold several properties on my own and it can be
tricky. Consider a reduced fee broker (FSBO type) or at least a lawyer
to help you avoid any future liabilities.
i bet any decent book on fsbo has a whole chapter devoted to how to set the
price. have you done any research on how to sell your house yet?
the money to be made by selling your house on your own, is earned through
knowledge. otherwise you would probably be better to use an agent.
how do you come up with a reasonable price? you price it too high and see
what people offer on it. its worth exactly what someone is actually willing
to pay you for it.
Let me make sure I understand what it is I think you're saying.
You're saying that you are going to handle a complex land title transfer
deal on your own, yet you don't even have an idea what to ask?
If that is what you're saying, I predict that this is only the start of your
problems. There's a lot of hidden snakes in there, and you're about to find
them the hard way.
As I say in advice I give here:
Do it once. Do it right.
The best of luck to you.
Good point. I wonder if anyone has real data on the selling price of owner
versus realtor listed sales. I'd be looking to save a little buying from
you since no broker is involved.
The real value of any house is what someone is willing to pay for it.
Setting a selling price comes down to a good guess based on experience.
We sold ours FSBO last year and it went pretty smoothly, but I think I
undersold by about $10K. Our plan was to just put up a sign for one
month, then the next month ads in the paper, and on the third month,
list the home with a realtor. Result: we sold it in two weeks with a
full price offer. We had about 5 lookers and with two open houses on
other properties going on one of the weekends, we got lots of extra
traffic. Was a quick and easy process, we had a lawyer friend give us a
contract to use and their lender handled the rest (appraisal, title
work, inspections, etc.) No hassle and no bad experiences, relatively
little work involved except for keeping the house immaculate for those
We were shopping for our new house and the realtor we had showing us
homes came over and said we may be priced a little low. We thought
that if we ended up going to a realtor to list, the price was going to
go up to make up for the commission. We mentioned that to everyone that
looked at the house and maybe that motivated them to move quickly. I've
seen homes on that street selling for about $30k more than we sold ours
for a year ago so a realtor or an appraisal would have helped us make
more money but there is a chance we could have had a harder time
One source of info we used was Selling Your Home for Dummies. Most of
the info was pretty much common sense but the checklists detailed how
to make your home marketable were great. The value of curbside appeal
is what you should focus on the most. My lawn was the most manicured
and well fertilized one on the block which made it stand out. I edged
it and kept it mowed and planted lots of yellow flowers, and trimmed
the bushes. We also boxed up all the clutter and tried to make the
house look like a display home, we took some to store at the inlaws and
the rest stacked neatly in the basement. Make the house smell nice and
play a little quiet elevator music. Yellow flowers on the table. I am
no marketing expert but for some reason yellow is a kind of focus color
for sales. At least thats what our realtor friend told us. Seems to
have worked well for us anyway. Clean clean clean!
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