Wednesday, January 24, 2007

How Much Should You Sell Your House For?

Quite possibly one of the most difficult things to do when
selling your for sale by owner home is to set a fair asking

(there is a free ebook: 101 Tips For Selling Your House,for you
to download,that helps you set a price for your house, from a
link at the bottom of this page).

This seems to be the case because of the wavering definition of
what exactly is “fair.”

It is quite easy as well as understandable to place a higher
value on your for sale by owner home than what is expected,
simply due to the fact that it is your home; the home you have
cared for and lived in for however long of a time period you
have lived in it.

You may have replaced the kitchen cabinets or retiled the
floors or even have had new carpet put in.

Other things that you might increase value in your for sale by
owner home would include the addition of a swimming pool or a
nice flower or vegetable garden in the backyard.

Unfortunately, all of these things mean nothing in the grand
scheme of setting a fair asking price. Well, they may not mean
absolutely nothing at all but they will not play much of a role
at all in the price that your house demands.

The single biggest reason for sale by owner homes fail is
because the owner has set an asking price far above what other
houses in the neighborhood have sold for.

This is the main determining factor in deciding how high to set
your asking price. As was mentioned before, for sale by owner
home additions are nice, but simply because the addition was
what you had always been wanting does not necessarily mean that
the potential buyer will agree with you and want to pay extra
for what you felt was a luxury item.

The swimming pool example holds up well here. Someone with no
children and who is afraid of water will not want to pay extra
money for something that they consider to be a liability. For
these reasons, it is important to check out the previous
selling prices of homes in your neighborhood.

If you require assistance in this matter, it is always a good
idea to enlist the aid of a real estate appraiser, however,
nowadays; Internet databases make this task easier than

There are a few other things to remember when considering the
asking price of your for sale by owner home. It is important to
consider all selling costs such as closing fees as well as to
consider how much cash you want after the sale.

It is a bad idea to start with the amount of cash you want from
the sale and work backward to get a price. This complicates the
deal and can end up causing you to raise the price

It is best to consider the fair market value of your for sale
by owner home and in order to raise the price a little, you may
want to either offer what is known as seller financing or allow
the buyer to simply assume the mortgage payments to your for
sale by owner for sale by owner home.

Seller financing is an option that should be used under the
guidance of an attorney in order to draft proper contracts. A
financial advisor should be involved as well in order to
determine appropriate interest rates.

The asking price should be fair and accurate in order to avoid
any unnecessary complications in the sale of your for sale by
owner home.

If you follow the tips above, you will stand a good chance of
selling your home quickly.

By: Geri Mason

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