Objectivity is Key When Determining an Asking Price
Saving $10,500 – $12,000 in commission fees (for a typical $150,000 home) is enough incentive for many home sellers to decide to sell their own homes. If your home is going to be a For Sale By Owner (FSBO) you will have to determine an asking price that reflects current market value. Pricing it too high will result in your dissuading potential buyers from even looking at your house. Pricing it too low will result in a quick sale, or bidding war, but will most probably leave you with less than what you’d had netted had you hired a realtor. For optimal results, you’ll have to do your own homework.
Look at the Facts
Start paying attention to the market. The best way to arrive at a selling price is to find comparable houses that have sold within the last six months. As you record the addresses of recently sold homes in your neighborhood (and similar neighborhoods), take pictures. These pictures will come in handy as you determine a selling price. Does your house have the same curb appeal? Or, is your house actually more appealing? The pictures will also justify your asking price to potential buyers. Once you have the addresses and pictures, go to your tax assessor’s office, usually found in city hall, and look up the records of each listing. See if these homes are indeed comparable. Compare property tax rates, square footage, number of bedrooms and bathrooms and lot size. Note the price paid by the current owner. Use this price as a baseline for your analysis of both homes. Make sure you add value to your house for positive assets lacking in the comparable and deduct value to your house for assets it lacks. Keep a running list of advantages/disadvantages and continue to add/deduct value to your asking price. Make sure you leave the assessor’s office with no less than three verifiable comparables.
Look at the Competition
Next, study homes that are currently for sale and which will compete directly with your own house. You can do this easily by checking the signs of “For Sale” homes that appear to be similar to yours. Go to the realtor’s web site and check the details of each house. You will generally see the house’s features listed in a standard form. This includes number of rooms upstairs and downstairs, number of bedrooms and bathrooms, square footage, taxes, and other details. Also note the asking price. These prices aren’t necessarily market value. Remember that homeowners have the final say as to what price their house lists, and the asking price might not be representative of its value. If the price has dropped, it may be more reflective of the true market value. Knowing the competition will help you accentuate your house’s assets which are lacking in your competitor’s house.
The Pasir Ris Central price will be determined after considering the competition in the sub zone. With the residential area, the transportation services in the individual zone should be good.
Arrive at Your Asking Price
Basing yourself primarily on the sold comparables, determine your house’s value. Once you have a figure of what the house will most probably sell, list your house for roughly 10 percent more. This will give you a bit of wiggle room to dicker. You probably didn’t pay asking price for your house and neither will your buyer. Buyers are looking for a bargain, and a bargain is made when the price agreed upon is lower than the asking price.
Market Your Home
The best priced home will not sell unless you market it. There’s a lot more to consider than just putting up a sign. Although you will save a hefty sum by selling the house yourself, you will have to spend $200 to $400 a month to advertise its availability. If nothing else, be sure to advertise all open houses. There are realty advertisers who promote For Sale By Owner houses. These companies include your home in their FSBO publications, which are updated regularly. You can also advertise your FSBO for free on Craigslist.
Jane Castro is a journalist and media enthusiast. She graduated from the University of Bacolod in the Philippines. She loves skating, scuba diving, and archery on her free time.