Why Do For Sale By Owners Fail to Sell by Owner?
I see homeowners everyday at www.infotube.net who decide sell their own home. I presume the reason they decide to sell their own home, instead of listing with a realtor, is to save money. But, do they?The reality is that many owners need a reality check. Many homeowner's could easily sell their own home, but they set themselves up to fail. How? They price their home for thousands of dollars more than any agent could sell it for.
For example, one FSBO I watched this month, put their home on the market for $198,000. The 3/2/1 dated, ranch-style home backed to a busy, commercial throughfare. Their asking price of $198,000 translated as $130 per square foot, in a neighborhood averaging $110.00 per square foot.
The house sat on the market, of course. No serious buyers were interested, imagine that. Obviously desperate, they listed the home this week with an agent for $187,000. $187,000? After the 6% commission, this FSBO will net $175,780, with a full-price offer.
What were these seller's thinking? Why would they list their home for $23,000, or 12% less, than they were attemping to sell it for? The paradox is that in their effort to sell quickly and save money, they they set themselves up to fail. They wasted weeks of their time, and as a result, they will net thousands of dollars less than they could have.
Don't kid yourself. FSBO is not an ammenity a buyer, or their mortgage company, will pay more for. The reality is that a home will not sell for more than its real market value. If you are putting out the effort and cash to market your own home... don't set yourself up to fail.
posted by Pozos at 10:45 PM
5 Comments:
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If I was to sell my house for an average or the highest of what is selling now $ per sq feet in the market in my area it would be below the market value set by the assessors office, in which I pay property taxes.
Dear Anonymous,
Why has the sales price dropped in your area? Has something changed in your town or neighborhood?
Also, if the house will not sell for the tax assessed value, why have you not lowered it to reflect the true market value?
Sales price didnt drop in my area, house are making 30,000 - 65,000 more than their 2004 tax value. They are selling for 122 - 154 per square ft.... My place is going for 176 per sq....but if I changed to 154 per sq it would be under my 2004 tax value. I just dont think the article is fair to say it is based on sq foot alone....it depends on the amentities, the condition, how many baths, rooms, location, some of the other places are not as good as condition as mine...an assessor came out physically and stepped in everyones home & she upped my because of some remodeling, fireplace,etc
In California,
Real Property is re-assessed when sold.
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