If you’re selling your Michigan home yourself (known as “For Sale By Owner” or FSBO for short), how do you determine the value of your home?
And more importantly, how do you set a fair sale price for your home that is both appealing to buyers in the current market AND to you as the seller?
At Mitten Made Properties, we’ve bought and sold a lot of properties in Metro Detroit — and here’s some advice for setting the initial sale price for your property based on our own experience! Remember: You can always change your sale price down the road!
Calculate “After Repair Value”
The first thing you should do is determine the after-repair value (ARV) of your home – that means how much your property would be worth if everything was totally fixed up and no repairs were needed. Go to Zillow and look at the sale price of homes that have sold within the last 3-6 months in your neighborhood. Compare properties that are similar to yours in size, number of bedrooms, quality, and location. Those sale prices will give you a good baseline to start with.
Consider Unique Elements
Next, you’ll need to consider elements unique to your property, both positive and negative. Factor in features like the age of your roof and furnace, updates you’ve made or ones that are needed, and so on. Does your kitchen have outdated avocado-green appliances? Does it need any major repairs? Or is it in pristine condition? Does it have a pool or detached garage? Outdated appliances and repairs will put your home value further from the ARV you calculated above, and a pristine home will be worth more.
Determine Your Timeline
How quickly do you need to sell your Michigan home? This will be a huge factor in determining an effective listing price. If you need to sell quickly, then opt for a lower listing price. If you aren’t in a hurry, then you could afford to price it a little above market value to see what you can get.
Set Your Price
Don’t overthink it! After you’ve done the above, set a price that you’re happy with and that you think will be appealing to sellers. You can always change your price later if the home isn’t selling or – even better – if a bidding war begins!
Hope that helps!
And if you want to skip the headache altogether and sell your Southeast Michigan house as-is for a fair cash price, give us a call at (248) 883-3340. We can close within two weeks, and we’ll even pay all closing costs!