10 Biggest Selling Myths UncoveredFree Real Estate Report for House
SellersSelling a house can be a bit like having a baby
-- everyone gives you advice that you may or may not have asked for, in spite
of the fact that the experience is unique to each individual every time. And just
like having a baby, there are many myths and "old wives' tales" to be
de-bunked. Among the truths are the following ten: - Myth: You should
always price your home high and gradually correct the sales price downward.
Truth: Pricing too high can be as bad as pricing too low.Your
strategy in listing high may be that you will always have the chance to accept
a lower offer. But the truth is that if the listing price is too high, you'll
miss out on a percentage of buyers looking in the price range where your home
should be. Offers may not even come in, because the buyers who would be most interested
in your home are scared off by the price and won't even take the time to look.
By the time the listing price is corrected, you may have already lost exposure
to a large group of potential buyers. Your real estate agent will be able to offer
you a comparable market analysis for your home. This is essentially a document
that compares your home to other similar homes in your area, with the goal of
helping you to accurately assess your home's true market value. - Myth:
Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to
maximize your return (or minimize loss) on the sale.By and large,
buyers are looking for an inviting home in move-in condition. Buyers who are willing
to tackle the repairs after moving in automatically subtract the cost of needed
fix-ups from the price they offer. You save nothing by putting off these items,
and you may likely slow the sale of your home. - Myth: Once potential
buyers see the inside of your home, curb appeal won't matter.
Truth:
Buyers probably won't make it to the inside of the home if the outside of your
home does not appeal to them.Many buyers today will drive by
a home before deciding whether or not to look inside. Your home's exterior will
have less than a minute to make a good first impression. Spruce up the view of
the house by keeping the lawn mowed, shrubs and trees trimmed, and gardens weeded
and edged. Clear the walkways and driveways of leaves and other debris. Repair
gutters and eaves, touch up the exterior paint, and repair or resurface cracked
driveways and sidewalks. You can also add additional appeal by placing potted
flowers out front, hanging a wreath on the outside of the door, positioning new
street numbers, and putting out a pleasing welcome mat. - Myth:
Once potential buyers fall in love with the exterior look of your home, you put
interior improvements on the back burner.
Truth: Buyers have no
qualms about walking right out the front door within 60 seconds if the house doesn't
look like it could be theirs.Remember that most buyers are looking
for an inviting home in move-in condition. You might consider spending a few dollars
on: painting, if the existing paint is in bad shape or an unusual color; carpeting,
if it shows excessive wear or an outdated color or style; refacing kitchen cabinets;
scrubbing bathrooms until they are sparkling clean; or several other key repairs
or replacements. Although you may be uncomfortable with spending a few thousand
dollars on your home right before you sell it, it's not uncommon for the right
work to more than pay for itself in a higher selling price and shorter marketing
time. Your real estate agent will consult with you about the repairs and replacements
that will benefit you most. - Myth: Your home must be every home
buyer's dream home.
Truth: If you get carried away with repairs
and replacements to your home, you may end up over-improving the house.At
some point, improvements that you make to your home can rise far above and beyond
what is customary for comparable homes in your area. For instance, there may not
be another swimming pool in your entire subdivision. After spending $20,000 to
install an in-ground swimming pool that you hope will lure buyers, you may find
that it only raises the market value of your home by $10,000 because there are
no other comparable properties to support the market value of the pool. As a rule
of thumb, if your improvements push your home's value higher than 20% above average
neighboring home values, don't expect to recoup the entire amount of improvements.
Your real estate agent can advise you as to the scope of projects you might consider
in preparing your house for sale. - Myth: Buyers are unswayed by
sellers that offer creative financing options.
Truth: By offering
flexibility in financing options, you may lure even more prospective buyers.You
might consider offering seller financing, paying some of the buyer's closing costs,
including a one-year home warranty, or other buyer incentives. Your real estate
agent, who has professional knowledge of local market activity, can help you decide
what incentives, if any, to offer. - Myth: You are better off selling
your home on your own, thus saving the commission you would have paid to a real
estate agent.
Truth: Statistically, many sellers who attempt to
sell their homes on their own cannot consummate the sale without the service of
a professional real estate agent. And those sellers who are successful
in selling without a real estate agent often net less from the sale than sellers
who use do a professional real estate agent. You probably visit a doctor when
you are in ill health. You also likely take your car to a mechanic for repair
and maintenance. When you require legal advice, chances are that you seek the
services of an attorney. Doesn't it make sense that you should contact a real
estate professional when you are preparing to sell your biggest asset? - Myth:
Good sellers are available to guide prospective buyers through the home, giving
the whole process a more personal touch.
Truth: Prospective buyers
will feel more that "this house could be" their home if the current
owners are not there.The presence of homeowners and/ or their
family members in the home while it is being previewed can make buyers feel like
they are intruding. They really do need to be able to visualize this house as
their home, which can be difficult to do when they are acutely aware that it is
still your home. Your real estate agent will be happy to look out for your home
during open houses or showings. - Myth: Successful sellers insist
that the terms of the sale happen their way or no way.
Truth: If
you approach the sale of your home as an adversary of the buyer, you risk losing
a perfectly solid buyer for no good reason.Always remember that
both you and the buyer have the same basic end goal: for you to sell your home
and for the buyer to buy your home. Your real estate agent will join you in approaching
negotiations in a positive frame of mind, which often results in a win-win proposition
for both you and the buyer. And if both parties are satisfied with the outcome
of negotiations, very few things will come between you and the closing table. - Myth:
When you receive an offer, you should make the buyer wait. This gives you a better
negotiating position.
Truth: You should reply immediately to an
offer! When a buyer makes an offer, that buyer is, at that moment
in time, ready to buy your home. Moods can change, and you don't want to lose
the sale because you have stalled in replying. |
