Profile picture for jillperk

How does one go about setting a home price for a FSBO sale? Appraisal minus 6%?

The house we bought was a foreclosure, and we paid quite a bit less for it than the appraisal for our loan.  We have made many improvements to the property and wonder what is the best way to find it current value?  We are considering selling to someone who once lived in the home as a renter, and will probably not use a Realtor. Any advice on setting a price?
  • March 23 2013 - Asheville
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Answers (7)

Hello, While I think getting an appraisal is a great start, you may also benefit from speaking with a local Realtor as well. Even if you plan to sell by your self, it is important to get a sense of what an ACTIVE agent thinks. With all due respect to appraisers, sometimes appraised and market value can be quite different. I'm more than happy to help you understand the value of the property you're considering selling. [Promotion and website removed by Zillow moderator. Please see our Good Neighbor Policy.]
Have a great day~
Jason Brodsky
  • March 26 2013
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Profile picture for Bill Eckler
Your most reliable and down the road, defendable resource is to have the home professionally appraised and base your price on this information.
By spending a few hundred dollars you have arrived at an accurate value that hopefully your buyer will benefit from when they apply for a loan.

Good luck,

Bill
  • March 24 2013
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Here is a link to find a local appraiser near you. Typically a seller would not give a full 6% 'discount' for selling without a Realtor, but something like 2-3% is common.

Appraisals are the market value for a typical home, but yes a typical home usually always has a 5-6% selling commission.

I would still suggest you pay a Realtor to help you with all of your forms. Why risk not having a correct disclosure ? Youll have no one to assign liability to if you ever get sued by the buyer except yourself. . . .
  • March 23 2013
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Profile picture for Ofe Polack
Have an appraisal done, good luck!
  • March 23 2013
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The easiest way to get a number is to order an appraisal.  You can do this by performing a google search, make sure you include your zip code.  Another option is to do what the banks do on their foreclosures to get a valuation.  They hire local brokers to complete a BPO (Broker Price Opinion)  They usually hire two local brokers and if those numbers are in line then they are done if not then they also hire an appraiser.

Don't skimp, when people try to save a nickel they end up losing thousands  

Also make sure if you don't hire an agent you at least hire an attorney.  

A colleague of mine sold his house to his renter who was living in the property.  

After closing there was big rain and leak.   The total damage was $23,700 but since seller didn't think it was his fault and he no longer owned the property he didn't want to pay and was sued by the insurance company of the buyer.  Net effect is this cost him an additional $16,000 in court and legal fees.  Proper paper work would have prevented this.

He saved a tiny bit of money by not hiring a real estate pro or attorney but ended up losing Months of time and Close to $40,000.  

I think most realtors are useless but there are good ones out there, who more than pay for their commission.   You might even want to ask a local broker if for 1.5% he can put together the paper work and manage the transaction.    That way you are saving 4.5% off the normal fees but still getting the protection and assistance that would be valuable. 
  • March 23 2013
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We often list homes at market value or a little more or a little less. Figuring market value is the key and if you had an appraisal more than a month or two ago it is as worthless as the paper in the bottom of the bird cage. You could pay an appraiser to come up with a new market value for you.
  • March 23 2013
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If you opt to not use a Realtor, the best way is to pay for a professional appraisal. Just make the appraiser aware of your intentions, as appraisals can be for many purposes (and have different valuations).

There will be some closing costs at your end (attorney fees, title company fees, transfer fees, city mandated inspections, taxes in some states/counties). So you will want to factor those costs in when coming up with a sale price. A title company can provide you with a break down of the costs for closing. That way you get as much money as possible.
  • March 23 2013
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