The real estate market is going CRAZY right now. There are tons of buyers and very few sellers. I want to take some time today to debunk some myths that home sellers here every day. Most information found through online sources (and offline too) are taken for face value. It’s unfortunate, but thats okay! I’ve got your back!
Again, selling your home is not like selling an old phone, laptop, or even car. We are talking about selling one of your life’s most expensive assets! You simply cannot afford to NOT do your homework. Here are 10 myths you cannot afford to believe!
Myth 1 - “The home’s selling price is set by the owner.”
As an appraiser and active valuator, I hear this ALL the time. “I know my home is worth X amount.”
Sure, as the owner, you will be making the final decisions as what level the house sells for.
However, the actual selling price will be subject to market conditions, characteristics, location, size, amenities, etc. This is why it is important to have a professional value your home before listing it for sale. This way you have a good idea of what it’s worth on the open market and what it will most likely appraise for!
Take the guessing out. Save yourself time and possibly thousands of dollars… get an expert opinion on value and decide how to proceed.
Myth 2 - Overpricing a home results in higher prices
So lets take this into consideration.. would you as a home buyer buy the first home you see online?
I highly doubt that.
If your home ends up being “overpriced” in comparison to other homes similar to yours or in your area, it is very likely your home will not make it onto the buyer’s short list. Your home ill be ignored for potential viewing consideration!
You hear the time’s old, “Lets see how the market reacts'“. Well I can guarantee you that if you’re coming onto the market with an over priced property… it will sit.
Sorry to be so blunt.
Myth 3 - The longer you wait, the better the offers
“Whoa, if the agent was able to bring me an offer this fast, can you imagine how much better the offers will get in a month?”
“I am in no hurry. A better offer will surely come. We only need that one buyer to love it!”
Ahh, All too familiar. Reality is, the longer the home sits, the lower the offers. The buyer’s agent and the potential buyer will look at homes that have been sitting and think two things. “I wonder how much lower we can negotiate?” and “I wonder whats wrong with the home?”
Don't learn this the hard way. Days on the active market is not your best friend!
Myth 4 - The real estate agent with the lowest commission will make you more money
Selecting the right real estate agent is crucial. Find an agent who knows how to successfully market homes and will fight for you. If the commission is 6%, why would an agent be wiling to work for less?
1- The agent is working with a company with a huge inventory. The huge inventory means less time spent marketing your home and one and one attention. Could you score by saving on commission? Possibly. You must consider if the agent has the time to properly market your home and vet the buyers to ensure you are getting the absolute most out of a transaction. Worst thing to happen would be to close and know the buyers were willing to pay more or you could have saved money at the table. Their cut rate services gives you the bare bone support and cheaper marketing efforts, but why not pay the total commission to get the full service? Often times, this nets the seller more money at the close of the transaction.
2- The agent has little experience or no proven track record. Could you take a shot and hope for the best? Absolutely! Again, we are talking about one of your most expensive assets. It should be handled with care and by a professional who knows how to negotiate for their client. I am not saying “Don’t give them a chance” because heck, we all have to start somewhere. However, time and effort is money. You decide. Favorite quote: “If you think its expensive to hire a professional, wait until you hire an amateur.”
Myth 5 - You can depend on online valuations.
It takes only a matter of moments for these online data bases to spit out a home value for you.
Maybe you’ve heard of a Zestimate?
Unfortunately these data bases do not take many things into considerations. Recent upgrades, your homes amenities, etc. A day will come when they have the perfect system for valuing homes without a professional, but it hasn’t happened yet!
However, obtaining a quick valuation is a good starting point and something to reference when you speak to your real estate agent on current values and home sales in your area!
Side note: Recent Zestimate accuracy studies have came in at predicated values of 256% higher than the actual sales price. Some as low as 62% of final sales price. That’s a huge gap!
Myth 6 - Selling a home “For Sale By Owner” will save you money
Honestly, why wouldn’t anyone want to sell their own home? You’ll save tons of money on commission right? Unfortunately this is not the case and if it was, I wouldn’t have a job.
There is a lot more to think about than taking pictures, putting a sign in the yard, and posting your home for sale online.
You can easily get a market relevant listing price just by interviewing a few agents but here are the facts. 93% of transactions taken place over the last year were agent assisted. That’s 3.5 homes out of 100 are sold with the two parties not knowing each other before hand. Also, NAR found that FSBO homes sold for 23% less than that of agent-assisted transactions. That is a whole lot of money to be giving away.
Here are a few things to consider.
Who will be marketing the home to get maximum exposure?
Who will be screening home buyers?
Who will be handling the incoming inquiries throughout the work day?
Who will be assisting with the buyer viewings throughout the work day?
Who will be negotiating the contract and covering its multitude of contingencies?
Who will be dealing with the home inspection findings?
Real estate professionals do all of this and more every day!
Thank you for checking out this blog post for today! If you have any questions or concerns, please feel free to comment below or shoot me an email: firstname.lastname@example.org. Please like our page on Facebook and follow us on Instagram! Be sure to take advantage of the free Market Analysis and other freebies on the our home page located here. My name is Matt Beard, and I am not your REGULAR Realtor. Have an awesome day!