Selling a house
can be a bit like having a baby -- everyone gives you advice
that may or may not be true for you. Here are ten myths
uncovered:
1. Myth: You should always price your home high and gradually
lower it if it doesn’t sell.
Truth: Pricing too high can be as bad as pricing too low.
You may think by listing high you can always accept a lower
offer, but if you do, you'll miss the buyers looking in the
price range where your home should be. Offers may not even
come in, because interested buyers are scared off by the price
and won't bother to look. By the time the listing price is
corrected, you will have lost a large group of potential
buyers. Your real estate agent will offer you a comparable
market analysis. This is 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.
2. 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.
3. 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 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 lawn, trim
shrubs and trees, and weed the garden. 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. Place potted flowers out
front, hang a wreath on the door and put out a pleasing
welcome mat for added curb appeal.
4. 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. Spending a few thousand dollars for the
right work on your home before you sell it, usually translates
into 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.
5. Myth: Your home must be every homebuyer'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
exceed 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.
6. Myth: Buyers are never swayed by sellers that offer
creative financing options.
Truth: By offering flexibility in financing options, you
may lure 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.
7. 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 complete the sale without the
service of a professional real estate agent.
Sellers who sell their home without a real estate agent often
net less from the sale than sellers who use one. You visit a
doctor when you’re sick and take your car to a mechanic when
it needs repairs. It makes sense to contact a real estate
professional when you are preparing to sell your biggest
asset!
8. Myth: Good sellers should be available to guide prospective
buyers through the home, giving the whole process a more
personal touch.
Truth: Prospective buyers will feel more like the house
could be theirs if the current owners are not there.
The presence of homeowners during a viewing can make buyers
feel like they are intruding. They need to be able to
visualize your 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.
9. 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 the buyer’s
adversary, you risk losing a perfectly solid buyer for no good
reason.
Both you and the buyer have the same goal: for you to sell
your home and for the buyer to buy it. Work with your real
estate agent to approach negotiations positively and with a
win-win frame of mind.
10. 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 stalled in replying. |
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