Being a Realtor with a working team and also the CEO of a “For Sale By Owner” website, I will attempt to take an unbiased approach to this argument and cover the pros and cons of each stance. There are 4 points that a Realtor will base their arguments on and so I think it is only fair to address each of these points.

4 Points Or “Arguments” A Realtor Will Make
1. A Realtor can price your home more accurately.
2. A Realtor can negotiate the deal better than you can.
3. A Realtor can sell your home for more money.
4. A Realtor can sell your home faster.

So let’s ask each question and talk about the real answers. For the sake of this discussion, let’s first assume that the Realtor we are talking about here is an experienced agent that sells more than 12 homes per year. Why is that important? Because over 80 percent of Realtors sell 3 or fewer homes per year and cannot truly make any of the arguments listed above. How can they? The agents that only sell 3 homes per year have to relearn the business on almost every deal. This is true across the industry. There are too many “part-timers” for these arguments to be a blanket statement for every Realtor.

CAN A REALTOR PRICE YOUR HOME MORE ACCURATELY THAN YOU CAN?
Up until a few years ago, the answer was most definitely “Yes” but that has recently changed. Let’s compare.

Realtor
It is true that, on average, Realtors price homes more accurately than a FSBO seller will. Realtors have resources available to them to see all of the recent sales in any given neighborhood. They can also see all of the available homes currently on the market. By analyzing this data, they can make a fairly accurate prediction of what a home should sell for and even how quickly it should sell.

Seller – For Sale By Owner
Most sellers price their home based on what they “think” their home should be worth. Their pricing is based on very little accurate data other than what other homes are currently priced at that are still on the market. No Realtor would ever… or rather, should never base a price on what is for sale but rather what has sold. With today’s technology and the resources on the web, a seller can spend as little as $16.95 and get the same information that a Realtor uses. Now for the tricky part… forget any notion that your home is better than any other seller’s home. Use this report and base your price on hard data and you can price your home as accurately as a Realtor. Get your house value report here

Winner – It’s a Tie … if FSBO sellers use the data available to them and take an unbiased approach in pricing their property.

CAN A REALTOR NEGOTIATE A BETTER DEAL THAN YOU CAN?
There is more to negotiating than just the price. With that being said, let’s compare.

Realtor
There is no substitute for experience when it comes to negotiations. As I said before, there is more to negotiations that just price, there are repairs, time-frames and many other small details that become part of the negotiation. A Realtor has the ability to step back emotionally and really look at the deal in an unbiased way. They should be able to analyze the proposed price and use their data to support the selling price. Through experience, they can recognize which repairs make sense to accept, which ones can be settled with money and which repairs should be thrown out with supporting arguments as to why.

Seller – For Sale By Owner
It’s hard to compete with experience when you are negotiating a contract. It’s like playing cards. You get better the more you play. You learn when to hold fast, when to bluff and when to fold. This doesn’t mean that you can’t do it though. Here is where you have to weigh your options carefully. If you sell on your own and get the raw end of the deal on repairs or even lose a few thousand dollars on price because you didn’t have the data to support your argument, how much did you save by not using a Realtor? The average home seller saves $15,000 in commission when selling as For Sale By Owner. So if a Realtor could have saved you that $3,000 in the selling price and kept you from making that $2,000 in repairs, you are still ahead $10,000.

Winner – Realtor … but is stronger negotiation worth 6%?

CAN A REALTOR SELL YOUR HOME FOR MORE MONEY?
According to NAR (National Association of Realtors), “Sellers who use a real estate professional make 16 percent more on the sale of their home than do sellers who go it alone”. Is this true? Let’s compare and see.

Realtor
We talked about accurate pricing earlier. Accurate pricing in the beginning is key to getting the most money for your home in the end. Realtors have the data available to them to accurately price a home in the beginning. It should be a safe assumption that, on average, Realtors can in fact sell your home for more.

Seller – For Sale By Owner
As I mentioned earlier, FSBO sellers now have the same data available to them to price their home accurately. Accurate pricing is key to getting the most money for your home. It has been proven that if you price your home even 10% above true market value, you will only reach 30% of the potential buyers for your home. The longer your home sits on the market, the more inclined buyers will be to get aggressive with their negotiating in the belief that you are getting desperate. If you price 15% below market value, you will reach 90% of potential buyers but once again, buyers will think you are desperate to sell quickly and become more aggressive in negotiating on the price even lower. Get your house value report here and price your home accurately.

So where does the 16% figure come from? The statistics that back this figure up, though incomplete at best, stem from past FSBO sellers using their gut feelings to price their home or simply listing in the local paper.

Winner – It’s a Tie … again, only if FSBO sellers use the data available to them and take an unbiased approach in pricing their property.

CAN A REALTOR SELL YOUR HOME FASTER?
Let’s hear their arguments and then compare.

Realtor
When you ask a Realtor how they can sell your home faster, their response is almost always “accurate pricing equals a faster sale” and “we offer greater marketing” or “greater exposure for your home” to drive more interested buyers. We have already answered the issue on pricing so let’s move on to the “greater exposure” claim. A Realtor has one main marketing avenue. I am talking about their local MLS of course. The MLS feeds the Realtor’s listings out to Realtor.com which is the largest real estate website in the world with over 5 million unique visitors per month. Only a Realtor can list a home on the MLS. They may also talk about magazine and radio ads but any honest Realtor will tell you that these are really there to advertise their brokerage and drive leads for their buyers agents. Very few Realtors submit your home to additional real estate sites, usually due to lack of know-how.

Seller – For Sale By Owner
How does a seller compete with Realtor.com? It is the largest real estate site on the planet after all. Thanks to the new technology available today, when you list your home on FSBOmarketplace.com, your home will be listed on 30+ of the top real estate sites with over 12 million unique visitors per month combined. That’s a lot more than 5 million. I am by no means discounting Realtor.com. In fact, I think it would be very smart to ensure your home is also listed on Realtor.com. So if Realtor.com and the MLS is only for Realtors, how can you list your home there? A few Realtors (very few) offer a flat-fee MLS listing. For anywhere between $299 and $499, a Realtor will list your home on the local MLS and Realtor.com. You will still be responsible for paying a buyer’s agent 2% to 3% if they bring the buyer but that still saves you 3% to 4% in commissions. On our site, you can get the great exposure of over 30+ real estate sites as well as the incredible exposure of your local MLS and Realtor.com through our Flat-Fee MLS plans and still reserve the right to sell “For Sale By Owner”.

One important detail to consider here is the fact that a Realtor’s service is free to buyers. Because these services are free, they would be foolish not to employ a Realtor. Realtors will NOT show a FSBO home unless they know they will get paid a commission. Plus, the MLS is the only place most Realtors conduct a home search for their clients. It would behoove you to list on the MLS if you are not seeing immediate success selling without the MLS.

Winner – Tie in regards to traffic and exposure … comparing a Realtor to FSBO without MLS exposure.
Winner – For Sale By Owner Seller … comparing a Realtor to FSBO with Flat-Fee MLS option.

VERDICT
So what does this all mean? It means that times are changing. There are enough resources available to you, the “For Sale By Owner” home seller to allow you to sell successfully, quickly and for top dollar. There are times when the need for a Realtor are real and necessary. Their expertise, experience and dedication to help ease your stress during these potentially difficult times can be worth every penny you pay. If you have the money and the ability to enlist the aide of a Realtor, then I feel confident in saying that you will not be sorry. However, if money is tight or you have the time to educate yourself on real estate, then you will be greatly rewarded. Good luck and no matter which path you decide is right for you, know that myself and my team will provide you the support you need.

1. Write positive headlines
   The purpose of your headline is to grab the buyer’s attention and compel him to want to see your home. Writing positive headlines such as ‘Beautiful Home For Sale’ will attract more buyers than ‘Bank Foreclosure’.
2. Describe the best features
   Don’t just list the features of your home. Describe the benefits to the buyer, telling the buyer why they will want that feature. Instead of saying ’family room, fireplace, 3 bedrooms’, say ‘family room with fireplace to snuggle around on cold winter nights. 3 spacious bedrooms with lots of closet and storage space’.
3. Write to potential buyers
   Determine who your potential buyers are and direct your ad to them. If your home is in a good school district, mention the schools in your ad. If you are near public transportation, say something like ‘save money on gas with convenient commuting options’.
4. Include the price in your ad
   May real estate professionals omit the price as a way to get the phone to ring. As a for-sale-by-owner, you most likely don’t want to be bothered with calls from people who can’t afford your home. Include the price as a way of screening potential buyers.
5. Use positive words
   Use positive words in your ad. ‘Needs TLC’ is more appealing than ‘Needs Work’. The word ‘cozy’ will attract more attention than ‘small’ and ‘maintenance free’ says more to a buyer than ‘no yard’.
6. Include the property location
   Buyers are often focused on a certain geographical area. Be sure to include your property’s location, so buyers don’t overlook your property by mistake.
7. End with call to action
   Conclude your description with a reason for the buyer to contact you or other call to action. Something like ‘Don’t let this home get away’ or ‘Will sell fast, call now can make a buyer call for details.

A study was conducted in Canada a number of years ago to determine what words work best to sell a home. Here are the results:

• ‘Beautiful’ homes sold 15 percent faster and for 5 percent higher in price than the average. ‘Good value’ homes sold for 5 percent less.
• The verbiage ‘must see’ was about as popular as a telemarketer at dinnertime, but didn’t significantly impact the number of days on the market.
• Use of the word ‘landscaping’ related to homes selling 20 percent faster than the average, while homes using ‘move-in condition’ took 12 percent less time to sell.
• When conveying the motivation of the sellers, some words worked better than others. Listings using the word ‘moving’ sold for 1 percent less in price compared to 8 percent less with the word ‘motivated’.
• Use of words such as ‘foreclosure’, ‘as-is’, ‘handyman special’ and other terminology relating to a problem related to lower sales prices.
• Words highlighting positive features such as ‘granite’, ‘maple’, and ‘gourmet’ were associated with higher prices.
• Referring to ‘golf’, ‘lake’, ‘views’ brought increased prices. But, positive comments (new paint, new carpet) relating to condition brought lower ones.

Words that help a listing:
curb appeal, move-in condition, landscaped, granite, gourmet, golf

Words that hurt a listing:
motivated seller, good value, as-is, clean, quiet, new paint

1. Reply in writing.
   Take time to review the offer you have in hand and always reply in writing. Whereas mere handshakes worked in days past, having everything spelled out in writing is the only way to avoid misunderstandings and legal headaches further down the road. You have a number of options after receiving the offer. You can accept the offer as is, make a counteroffer or reject the offer outright. If the buyer is not being represented by a Realtor, ensure they are using legal binding contracts. You can find real estate contracts on FSBOmarketplace.com’s Real Estate Forms page.
2. Learn the buyer’s financial situation.
   While considering your offer, you will want to learn about the buyer’s financial situation. If the buyer is obtaining financing, you will want to get a pre-approval letter from his lender, confirming the buyer’s ability to purchase your property. If the buyer is putting down a substantial down payment or paying cash, you will want to verify his funds with a bank statement or other written documentation.
3. Making a counteroffer.
   Often a buyer’s initial offer is considerably lower than the asking price. Let’s face it, the buyers is trying to get the best possible deal for himself and if it is a buyers’ market, he probably won’t make his best offer. Don’t be insulted or take the offer personally, but review the terms of the offer and by all means make a counteroffer. It is always a good idea to make some concession to the buyer in your counteroffer rather than coming back at full price. You want to make him feel like he has gotten ‘something’ and want to continue negotiating.
4. There is more to consider than price.
   Price is important, but there is more to consider when reviewing an offer. What contingencies is the buyer asking for? Is the sale contingent on the sale of the buyer’s current home? Is a home inspection required? Is there any ‘give’ to the closing date? Does the buyer’s desired closing date work with your schedule? If the buyer offers you full price, but doesn’t want to close until 3 months after you have to be at a new job in another city, full price may not look so attractive. Take all terms and conditions into consideration before responding to the offer, especially if you know the buyer will ask for repairs after the property inspection.
5. Legal contract review.
   Once all parties sign a contract, it is a legal, enforceable document. It is a good idea to include a ‘document review period’ into your contract, giving you time to have an attorney review the contract and making sure you understand all of its provisions.

We hope this information will help reduce your stress. To find a home inspector or real estate lawyer, visit FSBOmarketplace.com’s Real Estate Service Providers page.

1. Home inspection.
   Your contract may allow the buyer to conduct a home inspection to determine the condition of the property and ensure there are no flaws to the property’s major systems. After the inspection, the buyer may ask for repairs to be completed for him to move forward with the sale. Repair requests are negotiable and can cause the deal to fall through if you and the buyer cannot agree. Keep possible repairs in mind when first accepting an offer.

   Any agreed upon repairs will need to be completed prior to closing with an additional inspection from the buyer to determine work has been done in a workman-like manner. Consult with your lawyer to see where your obligations are. Find a Home Inspector.

2. Property Appraisal.
   Once the property inspection is complete and repairs negotiated, the buyer’s mortgage company will order an appraisal of the property to make sure the buyer is not over-paying, and may even hire a surveyor to verify the property’s boundaries. Find an Appraiser.
3. Title Search.
   The buyer’s lawyer (usually associated with the title company) will perform a standard title search on your property to make sure there are no liens or other legal restrictions on your property. Some restrictions might be benign, such as easements (right of way) for storm drains, or even an access road for a neighboring property. If the title search does turn up any liens, your lawyer will advise you; you may be required to clear any problems. Find a Title Company for closing.
4. Removal of conditions.
   If any conditions or contingencies were written into the contract, such as the buyer selling his own house before completing the purchase of yours, then they must be removed (waived) by the date specified in the contract for the sale to go through. Otherwise, the contract becomes null and void. It is a good idea to keep in touch with the buyer as these dates approach, to ensure that everything is on track, and make any changes (such as extending the date of the condition, if you are both willing).
5. Final walk-through.
   A few days prior to or on the day of closing, the buyer will usually perform a personal inspection of the property, to make sure that it is in the same condition as agreed upon in the contract – you are legally obligated to keep the house in materially the same condition. All disputes over repairs or the condition of the property must be resolved before closing can take place.
6. Closing Day.
   As closing day approaches, you should advise your mortgage company that you intend to pay out the mortgage, and let your utility providers know when to shut off services under your name. Your lawyer will take care of all the details needed to close the deal, such as collecting outstanding money, settling the transfer of taxes, paying any loans or liens, transferring the deed to the new owner, and securing title insurance. Find a Title Company or Real Estate Lawyer for closing.

Congratulations on a successful sale!

Employment and income
• Where do you work?
• How much do you make?
• How long have you been at your job?
• How is your income derived — steady salary or irregular income? (if it’s the latter, plan on providing more details so that you get a favorable interest rate)

Outstanding debts
• What recurring debts do you have?
• How much do you pay a month for auto loans?
• Credit cards?
• How much of your monthly pretax income do these debts consume?

Cash reserves and assets
• How much money do you have in the bank?
• How much will be left after you pay your down payment and closing costs?

Down payment
• How much money are you putting down?
• Is this your own money? A gift? A nonprofit agency grant?

Loan purpose
• Is this mortgage for a home buy or refinance?
• If it’s a refinance, do you want to take cash out at closing to pay off other debts?
• If so, how much?

Property use
• Do you plan to live in the house?
• Is it investment property?

Property type
• A condominium?
• A duplex?

In order to get the best possible interest rate and gain the trust of your lender, you will want to be able to prove that you’ve had steady employment (preferably with the same employer or in the same line of work) for two or more years. You also want to avoid making any major purchases before applying for a loan – if a lender sees that you’ve just purchased an automobile last week, your debt-to-income ratio goes up and your ability to pay down a home loan goes down. It is preferable to be making a down payment of at least 5% of the sales price with your own money and to prove that you have at least two months’ worth of mortgage payments in the bank; however, there are many programs such as Fannie Mae that require much lower down payments.

DOCUMENTS NEEDED FOR LOAN APPLICATION

All Borrowers:
1. Copies of W-2’s for last two years.
2. Copies of paycheck stubs for most recent 30 days.
3. Copies of checking and savings account statements for last three months (all pages).
4. Copies of quarterly or semi-annual statements for checking, savings, IRA’s, CD’s, money market funds, stocks, 401K, profit sharing, etc.
5. Copy of sales contract when ratified.
6. Employment history last two years (address and gaps in employment).
7. Residency history last two years, including name, address, phone number and account number of current mortgage company and/or landlord.
8. Canceled earnest money check when it clears or corresponding bank statement, if applicable.
9. Commissioned or bonused income – if 25% or more of base, must have last two years tax returns.
10. Check for expense of appraisal and credit report.
11. Refinance – copy of Note, Deed of Trust, Settlement Statement, Survey, Homeowners Insurance
Declarations Page.
12. Any assets used for down payment, closing costs, and cash reserves must be documented by a paper trail.
13. If paid off mortgage in the last two years, need copies of HUD-I.

Self-employed Borrowers:
1. Copies of most recent 2 years tax returns (with all schedules, including k-1’s if applicable).
2. Copy of current profit and loss statement and balance sheet.
3. Copy of corporate/partnership tax returns for most recent two year period if owning 25% or more of company – copies of W-2’s and/or 1099 forms.

Documents Which May Be Required:
1. Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits.
2. Previous bankruptcy, need copies of petition for bankruptcy and discharge, including supporting schedule.
3. Divorce decree if applicable.
4. Documentation supporting moneys received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue.

Documents needed for FHA/VA Loans:
1. FHA: Copy of social security card and drivers license for each applicant and co-applicant.
2. VA: Original Certificate of Eligibility and copy of DD-214 Discharge Paper.
3. VA: Name and address of nearest living relative.

After the inspection, the buyer has a number of options… he can (1) remove the contingency clause. Or if he is not satisfied with the condition of the property he can (2) ask for repairs to be completed by the seller or (3) merely walk away from the contract and have his earnest money deposit returned to him. Bottom line, the home inspection is a re-negotiating tool for the buyer.

You, the seller, also have options. After being notified of an unsatisfactory report, you can refuse further negotiations and return the earnest money deposit, put the house back on the market and wait for another buyer. Or, negotiate the repairs asked for in the inspection report. You can not only negotiate which repairs are to be done, but who is to do them. You’ll want to spell out whether you will hire a licensed contractor or if the repair is something you can do your self.

It is not unreasonable for you to ask the buyer for a few days to talk with contractors and get estimates for the work that needs to be done. You may also want to consider giving the buyer a dollar amount at closing for them to get the repairs made after the closing rather than you doing the work. This is certainly less hassle and the buyer can make sure things are done exactly the way the home seller wants it done.

All agreed upon repairs must be completed prior to closing. The buyer will have a final walk-through, determining all repairs have been made. The homebuyer may ask to bring their home inspector to this final inspection.

One important point to remember…the inspector is working for the buyer. They are being paid to be nitpicky and will point out minor, even cosmetic repairs. Don’t take offense and stay focused on the major issues that should be repaired.

With an estimated 80%+ of home buyers starting their search on the Internet, photos have replaced curb appeal as the most important place where first impressions are made. According to a National Assn. of Realtors survey of the Web features that buyers found most important, 83% chose photos, 81% selected detailed property information and 60% selected virtual tours.

Every day, decisions about which homes to see and which homes to skip are made based on what a home buyer sees while viewing homes online. You can clearly see the importance that photos have on selling your home. If you can’t get the buyer in the door, you can’t sell the house.

So, is there a way to get better photos, short of hiring a pro? Here are several tips to spruce up your home and photos for maximum effect.

• Try not to take a picture facing directly into a bright window. If it can’t be helped, try facing the camera away from the window, hold the shutter down half way and then face the window and take the shot. This will lock in the exposure and improve the exposure of the room.
• Make the room look inviting. Set the dining room table with fresh flowers and complete place settings.
• Arrange books or magazines on the coffee table with the colorful ones on top.
• Don’t ignore the background. Remove all electrical cords from view, tidy up bookcases and fluff couch pillows.
• Wet down the patio and concrete pool surround (but do not leave puddles) to avoid it being too bright in the photo. Wetting it down also brings out the rich color in the brick.
• Remove clutter! Also remove excessive personal photos. The goal is to have potential buyers envision themselves living in your house; your family’s photos interfere with that process.
• When shooting your pool, use a flash and try your shot in late afternoon or early morning.
• Consider using software such as Adobe Photoshop to touch up the exposure or color.
• If there’s no furniture in a room, get some or move it from another room.
• De-clutter. Remove all personal effects, especially items hanging on the refrigerator.
• Move excess furniture out of the way. You don’t want to be shooting directly into the backs of chairs.

Too many times, a “for sale by owner” home seller or even real estate agent will list a home without any photos or wait until a later date to upload photos. Do not make this mistake! Get a minimum of one or two photos and post them online at the time you first list your property and get the rest of the photos online as quick as humanly possible.

If you prefer to hire a professional, visit FSBOmarketplace.com’s Service Providers page for Real Estate Photographers and Virtual Tour Providers.

1. Turbo Boost Sales Time
   Experts all agree and studies show staged homes sell quicker than non-staged homes. Sometimes 30-50% faster in most areas. This is more important then most people realize because the longer a home is on the market….the greater chance for a price reduction. Most buyers and their agents believe that, if a home has been on the market for some time, there must be something wrong with it or that the seller will be anxious to sell and will take much less than the asking price.
2. First Impressions Last a Lifetime
   People’s first impression of your listing is critical. Staging gives you the best opportunity to make a positive first impression rather than a negative one. The stronger the impression the less likely a potential buyer will be bothered if some things aren’t perfect.
3. Gone In 60 Seconds…
   Psychology experts have proven that people react based on emotion and then seek logic to back up the feeling. From a real estate perspective, a buyer will make an initial reaction in less than a minute whether they like your listing or not. Then, after the potential buyer’s initial decision has been made, they will either confirm that decision or rescind it in the next 6 to 20 minutes as they tour the property. This is why proper staging is critical for any listing.
4. Ready, Set, Go – Move-In Ready Sells Faster
   A properly staged listing not only appears to be in “Move-In Ready” condition, but it really is. Staging a house for sale means that every component of the house is as close as possible to model condition. All buyers prefer to buy home where they can just move-in and start enjoying life. They will even pay a premium for this.
5. Imagination Not Included
   Did you know that only 5% of the population can truly visualize how beautiful a home can be or see past the clutter, grime and so-so appearance? It’s true. Help potential buyers see themselves happily living in your listing and let the offers come pouring in.
6. Be the Needle In The Haystack.
   Staged homes have a much greater competitive advantage over houses that are not staged. Let’s face it. Experts are predicting that more and more listings will be sitting on the market for sale in the next few years. Some areas have already seen a 100-300% increase in available inventory and average time on market. A staged home stands apart from other listings because it has been properly merchandised to bring out the best qualities of the listing.
7. No Skeletons In The Closet
   Staged homes project an image of being well maintained and well cared for. The underlying psychological message that is sent to potential buyers is that it’s worth more. More importantly, staging helps remove a certain degree of risk that a potential buyer might have about buying a house that is in disarray.
8. Appraise It High Or Go Home
   As more and more homes become available, you need every advantage possible. One marketing advantage you might overlook is to create instant loan to value (LTV) by getting an appraisal after the house is staged. If you can show a potential buyer how much the home is worth i.e. appraised value and the sales price is less….instant value. It will sell faster because it appears to be a better deal.
9. Move To The Head Of The Class
   Real estate professionals never like to show a house that’s not going to impress their buyer. A well staged home could easily be described as “staged to sell” which means that it’s going to impress their buyer. Staged homes are always at the top of the list when it comes to which properties an agent will show.
10. The Exception To The Rule – The Buyer’s Rule
    Would you show a house to a buyer that didn’t meet their exact criteria? Maybe…but ONLY if the house is staged properly and gets clients excited. If an agent knows that a listing shows really well, but doesn’t match the buyer’s criteria exactly, it’s possible they’ll show it anyway. A well-staged home could be the one to get a buyer excited enough to make an offer.
11. Peace, Love and FREE Advertising
    Brokerages love showcasing beautifully staged homes because they draw more business to their firm. They usually invest considerable money to advertise a well staged listing to generate leads for other agents. Why not capitalize on your firm’s need to generate fresh leads by learning how to stage every listing to its fullest potential and then sit back while they use it for shameless promotion.
12. Show Me The Money!
    The better a home shows – the higher it will sell for which means more dollars in your pocket. Non-staged homes are more likely to require price reductions in order to sell as opposed to staged homes, which are more likely to enjoy a number of offers, possibly a bidding war or a sale above the asking price.
    Information provided by AHS.

Above article provided by Texas Home Central

Tip #1 – PRICE YOUR HOME ACCURATELY
Once you know what your home is worth, now is the tricky part. Setting the selling price. If you set it too high, you will get less visitors to see your home. If you set the price too low, potential buyers will be suspicious and think something is wrong OR think you are desperate to sell and try to negotiate you down even further. The trick is simple, price it accurately the first time and within a few thousand of where you want the home to close at. Ultimately, there will be more offers and less negotiating on the price.

Doesn’t sound like much of a trick? Well you’d be surprised at how many real estate professionals have NOT figured that one out. Let me share with you a dirty little secret. There are a lot of Realtors that will tell you that your home is worth more than it is in an effort to win the listing. They lead you to believe you can sell for more if you list with them knowing full well that they are going to convince you to lower the price after a few weeks of no offers. The real problem is the longer your home is on the market, the more desperate you become and the more potential buyers will try to negotiate with you even more. In the end, you the home seller always lose but that shady Realtor still gets paid.

Tip #2 – PRICE YOUR HOME PRECISELY
Ditch the three zeros at the end of your sales price and use a more precise figure. A research team at Cornell University found that home buyers will pay more for a home if its listing price does not end in all zeros. If your home is valued at $255,000 try listing it at $254,500.

I recently read an article in the Washington Post that covered this very idea. Here’s the condensed version:

Washington Post- Researchers (at Cornell University) say sellers make more money if they price their home at $325,425 rather than $326,000. … Results were confirmed by examining 27,000 transactions in two markets – South Florida and Long Island, N.Y. In South Florida, having three zeros at the end lowered the selling price by 0.73 percent. … According to the authors, if there is one house with a list price of $485,000 and another with a list price of $484,700, “our results suggests the the house with the more precise list price will sell for about $1,380 more” than the house with the three zeros.

If you are interested in selling your home quickly, remove your personal feelings from your pricing strategy, get a house value report for your home and price your home precisely.

Above article provided by Texas Home Central

Obtain A CMA (Comparative Market Analysis):
When selling your home as “For Sale By Owner”, it is especially important to get a CMA or “House Value Report” which will give you an idea of the price your home should sell. A CMA details the prices of similar homes recently sold, on-the-market homes as well as homes that simply did not sell in your area.

Be wary of real estate agents attempting to “buy” your listing. An agent practicing this technique will often sweet-talk you with their elevated price recommendation waiting only a few weeks to insist on a price reduction. Be mindful: a home on the market for extended periods become less sellable. People begin to wonder if there are significant defects with the property or whether the seller is truly motivated.

Some agents suggest under pricing your home hoping to start bidding wars amongst hungry home buyers. While this technique may work to an extent in some markets, it is often a wiser decision to market your home at an appropriate price from day one.

Calculate the Price per Square Foot
The average square feet of homes in your area can be considerable help in determining a proper listing price for your home. However, it is not recommended you rely on this tidbit of information solely.

Evaluate Market Trends
How quickly are homes selling in your area? Are prices increasing or decreasing? Are you in prime selling season (typically during spring) or attempting to sell in the drooping winter season? How many offers are sellers typically receiving once on the market? These are only a few of many questions that your agent can help answer.

What Major or Minor Problems Exist Within Your Home?
If you’re in a sellers market you may not need to worry about fixing most problems in your house. Buyers are much more open to problematic homes when they are having a tough time finding one in the first place. However, if you’re in a buyers market it would be wise to fix as many problems in the house as you’re financial able to.

Either way, a home with problems will not generate as much value as a home in almost perfect condition (no home is perfect!). An advisable solution would be to evaluate the potential cost of repairs. Determine whether these costs could be recouped during the sale of your property. It is certainly worthwhile to consult your agent as well as other professionals for matters such as these.

Jazz Up the Deal
Often, buyers come to the table with terms that some sellers are not open to accept. Some include quick sales, lease-options, or asking that closing costs be paid by the seller. If you are motivated to sell offer something up front to attract buyers that may be interested in such terms.

Reaching a listing price can be tricky; however, using reliable information with personal feelings aside, you can reach an acceptable agreement.

Above article provided by Texas Home Central