When determining what kind of an asking price to attach to an FSBO home, there are several points to consider.  Because you have omitted a third party – a real estate agent – asking price can be more flexible.  Still, you need to be sure the price you set on your home is reasonable and fair – for both you and the buyer.

Get an Appraisal

Obtain a house appraisal from a qualified appraiser.  One recognized by lending companies and banks.  Interestingly enough, banks and mortgage companies do not lend money to homebuyers based on the value attached to the property by a real estate agent.  This is so since they do not regard real estate agents valid evaluators.  And for a good reason!

Most times, a real estate agent’s reasonable market study does not signify the real market value of a home. So, guard yourself by getting an assessment done by a professional evaluator, one that will provide a precise, impartial assessment of your home.

An evaluator computes a property’s worth using a direct sales evaluation approach – based on the actual selling, not asking price, of similar properties in your neighborhood.

Even a property owner can get a comparatively precise assessment of their property. Through undertaking a little research, making use of an online house appraisal service, and by collecting data from the interactive Home Price Information Services available in many major cities.

Set a Reasonable Asking Price

Without having to think through a real estate agent’s fraction of the selling price, as a “for sale by owner” homeowner you have more freedom when deciding on an asking price.  However, make sure the price you attach to your home is realistic. 

While you can set the price a little higher than the house appraisal if location or other aspects of the property are especially desirable, it is in your best interest to be conservative when attaching an asking price on your home for sale by owner.

Several buyers will make a reasonable offer on a reasonably priced FSBO home they like, however will shun making any bid if the asking price is set excessively high.

Buyers are typically warned by a buyer broker or lawyer to bid lower or at the evaluated value.  Even so, except the market is slow in your area, setting your asking price at 3 to 4% over the appraised value of your home will not discourage most serious buyers.

Selling the Buyer on Your Asking Price

After setting a reasonable price on your home based on the house assessment, sell the buyer on your asking price.  There are advantages to buying a FSBO house.

First, the selling process is less complicated for both the seller and the buyer. Finding a buyer is often faster, too.  A large percent of FSBO homes that sell were originally listed with a real estate agent, before the homeowner became frustrated and took matters into their own hands.

In some cases, the asking price of a home FSBO can fall by 6 to 7% from what the real estate agent had it listed for, and yet put more money in homeowner’s pocket while saving the buyer big bucks!

Enhance Your Chances of Making a Quick Sale

To increase chances of making a quick sale, advertise wisely.  Advertising online using resources like Virtual Real Estate Listings can save you hundreds, even thousands of dollars in newspaper advertisements and other forms of advertising.

For a reasonable, one-time fee, a full page ad complete with color pictures is made available to interested parties around the clock, 7 days a week.  And placing an inexpensive one or two line notice that includes the online ad’s URL in area newspapers will prove one of the most cost-effective ways to advertise your FSBO home.