Home Seller Service (FSBO service)
The benefits of listing your own property without an agent, also known as For Sale By Owner (FSBO), can equal to a large amount in savings if done properly. Without any professional consultation, you may end up pricing your property too high, or even worse, too low.
An appraisal cost would be marginal when compared to commission of a real estate agent. An appraisal will ensure you the right price point, gives you professional advice on your property, and gives you a solid negotiating tool when buyers try to under bid on your property.
Without an appraisal the most common situation is that you may overprice your property.
Consequences of Overpricing your Property
Pricing to your own property can be troublesome. It requires large amounts of research, and a lot of time sifting through raw data. Furthermore, you are probably more attached to your own property than anybody else and you may inflate your property sale price.
Without an appraisal you may price your property too low and consequently lose money. On the other end, you may price it too high -a common occurrence- the property becomes unattractive.
The property will just sit in the market. Agents won’t show overpriced homes to their clients because they think the seller will be inflexible with the price. Buyers won’t make a bid or will wait until you reduce your sale price to make a lower offer. As time passes, the property becomes increasingly unattractive.
Having an unattractive property will just waste your own time and cause unnecessary stress where it is unneeded.
“Pricing: This will require you to conduct research, on the Internet at sites like www.realtor.ca as well as touring your neighbourhood to look at what homes are selling for. You will not have the same up-to-date access to what properties have sold for as an agent does, but you can get a general idea as to what your home is worth. You will also need to visit the ‘competition’ to look at how they compare to your home. Most sellers think of their home as unique, or special. Not true. You need to be realistic when setting a price. Most buyers will expect a discount since you are not paying real estate commission. As an alternative, you can get a professional appraisal for $300 to $500 to obtain a more accurate idea of what your property is worth. Go to www.aicanada.ca to find an appraiser in your area.”- http://www.moneyville.ca/article/886628--selling-a-home-on-your-own-5-things-to-consider
