For Sale By Owner – How to Prove Your Home is Worth Your Asking Price
June 18, 2008
If you were a home buyer and the property owner told you all about how wonderful the house was and all the reasons it was a great place to live, would you believe them?
Homeowners Are Biased
After all, they’re just trying to sell their home and might say anything to close the deal. Not that most people would lie to house hunters, it’s just that the home owner is not the most objective person to ask when looking at the quality and value of the property because they have a lot of money and emotion invested in their house, condo, or duplex.
Understanding the home buyer perspective can definitely help when trying to sell your home. Of course almost everyone selling a home was at one time a buyer and can relate to this situation.
Proving the Value of Your Home
So how can you the home owner convince prospective buyers that your property is worth your asking price? One of best ways is to get a trusted third party to document the condition and value of your real estate.
Home Inspectors – The first thing you might want to do is hire a home inspector to examine your property and document all their findings. There are actually several benefits to hiring a home inspector. The first is that you’ll discover any issues and have a chance to correct them before buyers start looking at your home. If you find something you don’t feel the need to correct, don’t have time, or can’t afford it you can at least determine the cost of fixing it and have that information when it comes time to negotiate price.
The second reason that having your home inspected can help you sell it is that you have documented proof of the condition of your property from an objective third party. Of course, “objective third party” is a key component so make sure you hire a well known and inspector with good credentials.
Home Appraiser – Once you’ve identified/corrected any issues with your home hire a real estate appraiser to document your home, research it’s value, and prepare a report on how much money it’s worth in the current market. This will give you an idea of where to set your asking price and can be used a proof for the buyer that the home is worth the price.
Document Home Improvements
Another thing you can do to help demonstrate both the quality of the home and the care you’ve shown for it is to prepare a list of all the minor & major enhancements and repairs that happened to the property while you were it’s owner. If you’re not the original owner and have details on work done before you bought it, include those as well.
Building Trust in Buyers
Think about it from the buyer’s perspective. If a home owner gives you a copy of a home inspection, real estate appraisal, and documents on all the enhancements and repairs for the property you’ll likely feel that they’ve not only done a good job taking care of the home but also that they’re being upfront with all the details and can be trusted.
What’s Your Home Worth – Summary
Having trusted third parties document the condition and value of your home allows you to build trust with home buyers and can help establish the validity of your asking price. Next time in the For Sale by Owner Tips series we’ll look at a few minor things you can do that make a big difference when getting your home ready to sell.
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All posts by Ben Edwards