- 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:
Fix-ups can wait until later. There are more important things to be
done.
Truth:
Fix-ups 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 walEBays
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 a 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 do
use 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 angle at negotiating.
