Pricing Guide

Access to the information that is necessary to arrive at the optimum price for a home was the main advantage that real estate agents once had over FSBO sellers. However, many people who knew this have used the internet to make this information available to anyone, leveling the playing field so that agents no longer have this advantage. The result is that there are now several websites which allow internet users to get an approximate value of their home using the same resources previously used only by agents. The primary resource used to arrive at these values is public tax records.

Perhaps the best and easiest to use of the websites is www.zillow.com, which has a tax record database that includes records for more than 60 million homes in the United States. A source for a second, or even third, opinion are counties’ official public tax records databases. See Public Records Databases by County. It is the most time-consuming of the three, but may be worth the effort.

There are several other factors that should be taken into consideration when pricing a home other than the expected market value. The most important of these should be the homeowner’s desired timeline for the sale. If your desired timeline for selling your home is shorter than average for similar homes in your area, take this into account. Likewise, if your are not in a hurry or have no particular timeline in mind, you will be in a better position to get the best price for your home. Remember, you can always lower the price in the future if you change your mind. In this case, be sure to advertise that the price has been reduced, as that is always appealing to buyers. When deciding which homes to use for comparison, select those which are as similar to yours as possible, then adjust for any significant differences in size, location, amenities, etc. Also keep in mind that the same information that allows FSBO sellers to be just as knowledgeable about markets is also available to buyers, and they are likely to make use of it.

Other important factors to take into consideration are the specific qualities of your particular home. Be sure to adjust your initial price for things that you may have had done, such as any addition like a sunroom or an enclosure for a hot tub, a granite counter top, a new deck or a partially or fully finished basement. On the other hand, adjust your price for things that may need to be fixed in the near future such as damaged shingles or a severely cracked driveway. A home inspector can help you identify problems. See our Partner Inspection Services page for more information. Consider large renovations that may increase the value of your home, but keep in mind that many renovations do not significantly increase that value.

One final consideration to make is your willingness to negotiate with a buyer. This also relates to how quickly you want to make the sale. If you are able to leave your house on the market for a little longer, you may command a higher price and/or be less willing to negotiate or not willing at all. Conversely, if you must sell quickly, you may wish to negotiate in order to accomplish this, or even start out with a lower price. FSBO sellers have a distinct advantage in this area, as they can reduce the price of their home and still save a significant amount of money. All of this is up to you and how you want to conduct the sale of your home.

Some sellers choose to hire an appraisal service. An appraiser will examine your house and take note of any recent improvements and any potential problem areas. They combine this information with tax records, recent nearby sales of comparable homes and other similar sources to arrive at an appraised value. You can take this value, or any value from any of the other sources available to you, and adjust it according to your desired timeline and willingness to negotiate. See our Partner Appraisal Services page for more information.

Pricing a home is an inexact science, but homeowners have access to all the information they need to make an educated and informed decision. While there is no guarantee that you will be able to reach the magic price that will maximize your home’s value and minimize its time on the market, there is no guarantee that anyone else will be able to do this, either. If you haven’t already, be sure to read about lack of incentive for an agent to get the best price for your home in our About Us/Why FSBO? section. It turns out that you may be in a much better position (and much more willing) to find the magic price than anyone else. Much of the outcome depends on the buyer, and it can vary considerably from person to person. One buyer may see a home as overpriced while the next buyer sees it as an outstanding value. This is another reason why it is helpful to show your house as often as possible. The more buyers you show it to, the more likely you are to find one that loves your home as it is, at the price you have set.

As you can see, you have many options when it comes time to name your price. If you are an informed seller, you should be able to set a price that is fair to you and also leads to the sale of your home. Be realistic, be optimistic, be flexible and take whichever approach best suits your needs. We wish you the best of luck!