One of the good services that Trulia offer is their Home Price index and the research they are conducting with home buyer and seller. Last year, Trulia published an interesting research showing how far buyers are willing to go to get a house.
This is so relevant to today’s Saratoga, Campbell, San Jose and Los Gatos markets that you would not believe. In fact, we lost on a Los Gatos home with a cash offer of $1.5M where the home was listed at $1.55m. The home went for $1.69M and closed in 3 days.
This research highlights the critical role pricing plays in the maximum amount you could net from the sale of your home. As you can see with every percentage point that your home is over-priced, you lose significant number of buyers who are willing to meet you at that price point.
In fact, the number of buyers goes from 25 to 9, when your expectations are for a 6% over asking price offer. That’s losing 64% of your potential buyers which is huge when it comes to marketing a home for sale.
That’s why we have written extensively about pricing as the most critical part of a FSBO sale along with other risk factors that for sale by home owners have to navigate. In additional to the typical challenges with marketing, pricing and negotiation that For sale By Owners face, there is always the you will under-price your home as well since according to CAR studies, FSBO homes fetch 28% less than homes marketed by agents!
So, call us if you are considering a For Sale By Owner.