Fargos Real Estate Tips: Fargo Real Estate Tips: 8 tips for pricing your home in a buyer's market

Getting ready to sell? The more you know about conditions in your local Fargo Moorhead market, the better your chances of getting the best possible price for your home.





1. Recognize that housing markets are local.

Home prices are like the weather -- very different in different areas.

2. Analyze who is buying and selling in your fargo market.

What's your competition? Who are the buyers, and why are they shopping?

3. Ask the professionals in fargo moorhead.

Don't ignore the elephant in the living room. When you interview real-estate agents, ask about the market conditions for your area and price range.

4. Know what your house is worth.

Talk to a handful of agents. Get an appraisal from a certified professional appraiser. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.

5. Consider strategic pricing.

Here's how it works: If prices in your area are dropping 1% each month, and you want to sell within the next three months, you take 3% off your price right off the bat. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.

6. Rebate your "commission."

If you're selling it yourself and need to move quickly, consider subtracting half of what would have been the commission from the sale price. The standard commission is about 7%, so if you subtract 3%, your $300,000 house would go on the market for $291,000, he says.

7. Evaluate whether you really have to sell now.

8. Assess the market where you plan to buy.

If you're selling one house and buying another, look at the market where you plan to move. "It might be that, with the housing there, it's a great time to buy."

Fargo Real Estate: 5 REASONS TO BUY

1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don't like apartments, the small penalty you pay for missing the bottom may not mean much.

2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price.

3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can't: the mortgage-interest deduction on your taxes.

4. You've found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.

5. You've built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

5 REASONS TO HOLD OFF

1. You've lived in your house less than two years. Chances are you haven't had enough time to accumulate equity in your home. Indeed, you may have negative equity, if you live in many areas such as California, Florida, Arizona or Nevada.

2. Your job security is uncertain. If your company or business is in distress, it's probably better to stay put until the smoke clears.

3. You don't plan to stay in your next house at least five years. While it's not important to buy at the exact bottom of the market, it is important to stay long enough to ride it out completely.

4. You don't have good credit or a decent down payment. Do you have a job and income you can document? As a result of the subprime lending crisis, lenders are much more careful about whom they're giving their money to.

5. You have an existing home to sell in a neighborhood where prices are dropping precipitously or where the number of foreclosures is spiking. In this climate, you're probably better off waiting out the storm.

Fargo Real Estate: It Saves You Time And Is Safer

Who is going to show my property to buyers? What if a buyer wants to view my property during the day while we are working? What are the legal requirements I need to comply with when selling my home? How do I know the buyer is well qualifying to buy my house? How can I best protect myself to ensure that the sale or purchase transaction goes as smoothly as possible? What happens if problems are found during the inspection? What happens if I don't disclose a problem and this is found later by the buyer, am I legally responsible? How do I advertise that my home is for sale? Do I have to use a title company? How do I find out when prospective homes come on the market? What price should I list my house for? These are just some of the questions that need to be addressed by sellers and buyers, if you have a Fargo Moorhead Realtor you will have some one who can guide you through these issues and problems.

It Saves You Money in Fargo Moorhead West Fargo North Dakota

How can using a Fargo Moorhead Realtor save you money when selling your home when it costs on average 6% in commission fees? Because on average a home sold using a Fargo Moorhead Realtor will sell for 16% more than those sold by the owner. Therefore after commissions the average home seller will receive 10% more.

But why do Realtor's get more money for your home? One reason is that Realtors know the market in Fargo Moorhead. They know how much homes are selling for in the area, if its a good market or a slow market and so have a much better chance of pricing your home correctly and not undervaluing or overvaluing it.

They can also market your home better to more prospective buyers. They know when and where to advertise your home, and have access to the Fargo Moorhead MLS which is used by other Realtors to find out what homes are currently for sale.

If you sell your own home you will probably still need to offer a 3% fee for the buyers Realtor. More than 80% of all buyers work with Realtor's, so even if you manage to sell your own property the chances are that the buyer will be working with a Realtor who will want paying. If you don't pay them then the buyer will have to. One common mistake made by FSBO's is offering less than 3% for the buyers commission, if you do this you may find that Realtor's are reluctant to show your property. After all if you were paid on commission and one job offered 3% and another 2% which one would you do?

Another problem FSBO's experience is low ball offers. A buyer often thinks that because the seller is not using a Realtor they can reduce their offer by 6%. The logic being that the seller is saving 6% therefore I they can also ask for this reduction.

OK so you should use a Realtor for selling a home but what about buying a home? Unlike other states, in North Dakota the buyer does not pay a commission to their Realtor, this is paid for by the seller. Therefore it does not cost the buyer anything to be represented by a Fargo Moorhead West Fargo Realtor.

Fargo Focus: How can a Realtor Help?

REALTORS® know current real estate values in your neighborhood and will help you set a realistic, competitive price.
REALTORS® will get information about your home instantly to all other REALTORS® in your marketplace.
REALTORS® can tap into a larger market through referrals, marketing techniques and the latest computer technology.
REALTORS® "qualify" prospects to ensure your home is in the buyer's price range and meets the buyer's needs.
REALTORS® are familiar with available financing and help match buyers and financing to expedite the sale of your home.
REALTORS® will figure the net proceeds from your sale, taking into account your outstanding loan balance, closing costs and possible owner financing.
REALTORS® know all the necessary steps involved in
selling a home from the day you list it, through appointments, phone inquiries, negotiations and closing. They make the sale "hassle-free!"
Real Estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®!