How do I set a price for FSBO?

amysrqMarch 31, 2009

I am getting ready to sell my townhouse in an area with a very thin market. Not much for sale and very few condos similar to ours. So, it's pretty tough to do comps.

One unit did sell last year for 219,000. It was not as good a building, had no improvements, but it had a detached garage. I am in a better building, have a bunch of improvements and all new appliances.

We are considering FSBO and my neighbor, who rents, is interested in buying, too. I'd want to set a fair price for him, but I am just not sure how to do that. If we go FSBO, I assume I need to mark the price up a bit so there's room to come down.

Can I get an appraiser in to hep me with pricing? I do not feel right calling in realtors to do comps when I think I may not use them.

I know there are lots of folks who think FSBO is a mistake, but part of me wants to give it a try. OTOH, I wonder if a realtor might be able to get a bit more for the place making it a wash to pay the commission.

The place will show well. I staged and sold successfully last year in FL. We don't live there so it will stay clean. I have the time to show the house. All in all, I think we're good candidates for FSBO...I just don;t know where to set the price.

Thanks for any and all input....even any efforts to talk me out of this! :-)

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housekeeping

A professional appraisal is what you need. Finding the right appraiser may take some doing, though. You want someone who is used to doing non-mortgage driven appraisals. I suggest asking your bank, and your attorney for some referrals.

And then speak with the person who would be doing the appraisal and ask specifically how many similar (or as much as possible) jobs they do, both for the type of property and for private, present market value appraisals.

Ask, as well, if they will take the time and walk you through the numbers beyond just the cover page. That will help you use the document effectively for price-setting in this situation.

I have used this tactic with good success. (I have to confess, however, that once I got a terrible appraisal - poorly done, way off the mark numbers, and simply clueless overall. I shredded it and ate the $400 cost, since it had no value.)

And if you do get an appraisal, keep mum about it with any propspective FSBO buyers (in most cases). Since what's in it is for you to know and base your negotiating strategy on. And if they know it was done they will want to see it. And a refusal to share will make them skittish.

HTH,

Molly

    Bookmark   April 1, 2009 at 5:00AM
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