You finally made the decision to sell your house—and take advantage of the market to move up. You have done your research and you are ready to go. As part of your research you call a former neighbor of yours who sold their house a few months ago.
The conversation goes something like this: 'Hello Jane, this is Suzy, how is that new home working out for you?' Then you have the courage to ask her: 'We are thinking of selling our home and were wondering how much you got for yours?' Jane's reply was: '$225,000.'
Armed with this neighbor’s account, you price your home for $250,000. After all, yours is a much better home. It is not as large as Jane's, but it has more amenities. If hers could sell for her asking price, then you should have no trouble finding a buyer for yours. Now with the price all set, you place your sign on the front yard. You want to sell it yourself to avoid paying a commission. You are now known as a FSBO (For Sale By Owner.)
With both you and your partner working, you have been limited to showing the house in the evenings or on weekends. After two months of trying to sell on your own, you feel a little bit discouraged. You have a nice home. It is clean and shows well. But you have had very few showings. The people who did see your home never came back. And you wonder, 'What more can we do to sell it?' You have let several good opportunities to buy another home slip through your fingers.
Little did you know that Jane was embarrassed to tell you that she had overpriced her home and had to take less. The facts are: she was asking $225,000 but only received $195,000.00 after all the negotiations were complete. That is the real story. Little did you realize that you now have an over-priced home—one that won't sell at your asking price.
Since Jane sold her home through her professional Realtor, all of her marketing information would be available through the MLS. If you had acquired a CMA from your local Realtor, you would have been armed with the information about her sale without asking her, and you would have known the facts long before you decided to put that sign in your yard. The information is free for the asking. It doesn't cost you a cent.
Napoleon Hill once said: 'Every individual has the power to change his or her material or financial status by changing the nature of his or her beliefs.' Until next week keep smiling.