Great Real Estate Question of the Week: Making an offer on a For Sale By Owner Question

If I’m making an offer on a FSBO, can I take an automatic 6% off the asking price because they are not paying REALTOR fees?

A person most often lists their home as a FSBO to save the commission in hopes to put those extra proceeds in their pocket. We do sometimes see properties being sold by the owner directly to be, to some degree, overpriced as they usually base the value off of an estimate or some other computerized valuation model, and these are many times inaccurate. Some believe that you need to price to leave room for negotiating; however in the real estate world the opposite is true- if a home is overpriced, it will not get showings as buyers are more savvy in today’s market place and do not have interest in attempting to negotiate an inflated price. In other situations, some sellers may be underwater and cannot afford to take any less and still pay of the mortgage in full.

Keep in mind that fair market value is established by recent, comparable sold homes in the area, and will need to be validated by an independent appraisal if financing is being sought by the buyer. A thorough search of recently pending or sold comparable properties and subsequent analysis of the major factors impacting values in the immediate area and current supply/demand will be your best guidance on offer price.

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Larry Eberhard – Keller Williams Realty

 651-702-4000 ~ Office

Email:  larry@larryeberhard.com

www.larryeberhard.com

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