How To Price Your Home In Fort Worth Texas Market
How To Price Your Home In Fort Worth Texas Market
One of the greatest obstacles to selling a home on your own… and one of the most common mistakes that many “For Sale By Owner’s” make… is in pricing the home for sale.
It's only natural and common sense that many homeowners have grown attached to their home because of the years of service, work and sweat equity they have put into the home. All the memories and emotional attachments that have gone into the home over the years sometimes cloud the process of pricing a home for sale.
So, what typically happens is that many “For Sale By Owners” overprice their homes – thus the reason that over 90% of them eventually fail and list with an agent.
This step deals with how to avoid overpricing your home… and at the same time… how to get every penny out of your home that you possibly can.
Now, undoubtedly you have an idea what your home is valued at… maybe you've gotten some information out of the mail from the local real estate agent who is concentrating on your area… or maybe you've looked in the newspaper… or maybe you picked up a flyer from a house up the street for sale in your area right now.
Whatever the case maybe, the first thing you need to do when determining price is to get at least three other opinions (and then compare those to what you have in the back of your mind).
Research is essential in pricing your home for sale. Simply start the process by picking up the Sunday newspaper and turning to the “Real Estate Section.”
Your goal here is to look for other homes advertising in your area for sale that are closest in terms of style, square footage, year built and characteristics to your own.
Include in your search, the number of bathrooms, acreage, bedrooms, garage spaces and location if possible. It won't take you to too long to determine what ballpark your asking price should be in.
One other note related to researching like-homes in the paper - don't be afraid to call the ads and talk to the owner or real estate agent about the details of the home. This will help you to narrow down the range even further to a realistic price.
When you do call, ask for more details about the home… for example: does it have hardwood floors? Has it been recently painted? Does it have a new roof? Are they any important updates? Does it have a pool or hot tub?
The second place you should get an opinion of value from directly is with 2-3 real estate agents who consistently work your area. Call at least two local real estate agents for their input.
When you do this be as “stupid” and as “naïve” as you possibly can… this will allow you to ask an endless number of questions to get all the information you need to make a sound decision on pricing your home.
A real estate agent should also be able to tell you more about the current conditions of the marketplace… such as where buyers are coming from (internet, newspaper, relocation or other).
There's no obligation to a real estate agent to conduct a “Market Analysis” for you… but it is a good policy to be direct and honest with him or her about your situation and that you are planning on trying to sell your home yourself.
Most real estate agents will be glad to conduct a FREE “Market Analysis” for you even if you tell them that you plan to go “For Sale By Owner”. This is because the odds are that you will eventually list are still in their favor… but they don’t know you have this manual.
A word of caution!
A word of caution, make sure the agents you contact for your “Market Analysis” used homes that have actually sold in your area.
This is an important distinction. The difference between asking prices and selling prices usually are substantial, which means, you want a “Market Analysis” from homes like yours that have actually sold… not from homes that are still currently on the market and unable to sell.
Remember also that real estate agents often tend to overestimate homes value as an enticement for you to list your home with them.
Remind yourself of this often and remember what your ultimate goal is: To save the real estate commission and do this yourself… so don’t get over excited or have unrealistic expectations based on a “Market Analysis” from any real estate agent you talk to.
If you take a more conservative approach to pricing your home (especially because you are a “For Sale By Owner” – and all buyers know this) you’ll have a much better chance to sell your home inside of 30 days.
Another convenient source to determine your sales price is to contact your local title or company.
Many people don't realize that title companies have the same information the real estate agents do. Plus, they are often more direct and honest with you… because they don’t want to list your home.
Many title companies around the country will provide this information for free in order to get your business when you do sell… others may charge a nominal fee that’s probably not worth mentioning here.
Remember, establishing a price of your home involves a little guesswork… so don’t be discouraged if some of the information you get from the paper, the agents and the title companies contradict each other a bit. You’ll have to “weed” through the piles of information you get to determine the most probable asking and sales price.
There is one other option
If you really want to be sure about the fair market value of your home before you try to sell it may want to consider having it professionally appraised.
Appraisers are estimators of the official value of properties around country, their used by lenders to determine the terms of real estate loans.
Appraisers will use objective business-like techniques to derive a reliable estimate a price.
If you do hire an appraiser you can expect to spend somewhere between $300-$500 per professional appraisal.
Once you have your research done… you must answer a few more questions to finalize a legitimate sales price. These questions help you determine your motivation factor – which will ultimately set the final price for your home.
Are you being transferred?
Do you have immediate financial needs?
Are you in a rush to sell your home or do you have all the time in the world?
What is the employment rate in your area?
How are the interest rates? High or low?
What time of year is it?
Taking a look at these common sense questions will help you further determine your ability to be a successful “For Sale By Owner.”
The next step in the process is going to be to market your home effectively to the buyers out there… and how to grab their attention with the right type of marketing approach.