As the "For Sale By Owner" seller, you will want to set the right price for your home. First you will want to estimate the true market value of your home. This is where the Comparable Market Analysis will be of use. The Comparable Market Analysis will show houses listed by address and the number of square feet in the home. It will also have the asking price of the home and the actually price the home was sold for along with the date of the sale. This will give you an idea of the true market value of your home.
You will look at the houses closest to the same size and number of rooms. You might even want to look at the houses in your neighborhood listed on the Comparable Market Analysis. You will want to look at the size of the lots to determine if they are larger or smaller than your lot. You also want to judge the general condition of the home compared to your own. Then set your price according to your observations. You can make it higher or lower than the price of the homes in your neighborhood already sold.
You might find it simpler to have your home appraised by a real estate appraiser. He or she will place a value on your home based on its condition, plus the sale prices of similar homes in your neighborhood.
You will need to consider the closing cost, which is the amount of money you will receive after the sale. The closing cost includes expenses incurred by the seller, which does not go into the price of the home. These expenses are attorney fees, title search, recording fees, surveyor’s fee, or any other costs accompanying the sale and purchase of the home.
If you accept a buyer brought to you by a real estate agent, you will pay half of the closing costs, which will run approximately 3% to 3.5% of the selling price. If you list your home with a real estate agent you can expect to pay 6% or 7% of the selling price.
The ideal situation since you are selling your own home, is for you the "For Sale By Owner" to advertise your own home, and get your own buyer. You will then pay nothing to the real estate agents.
As the seller for the "For Sale By Owner" home you can limit your costs by putting specific instructions in the sales contract as to the maximum amount he will pay towards the buyer’s mortgage costs and other closing fees. If a real estate agent is involved, the fees are subject to a separate contract with the agent and are not limited in the sales contract.
Since their a fewer buyers in the market for new homes in cooler weather like the fall and the winter, a "For Sale By Owner" seller might have to lower the price of the home to get a buyer. Families with children prefer to move when the children are out of school, which is typically during the spring and summer months. The only exception to this trend is in warm weather parts of the country. Buyers will not look to purchase a house in the extremely hot weather and will typically wait until spring and fall when the weather is cooler.
