News & Advice Selling

home selling misconceptions

When it comes to selling a home there is no shortage of advice from a number of sources, such as family and friends, however being given a lot of information doesn’t necessarily mean that it is the right information.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, receiving advice and information from so many different sources can lead to uncertainty about certain key aspects of the property sales transaction.

He notes that in today’s age of technology there is a vast amount of information at consumer’s fingertips, but having access to information and determining what can be trusted are two very different things entirely.

“It is not always easy to determine what information and advice should be held onto and what to ignore. As a result there are several misconceptions that have made their way into the marketplace,” says Goslett.

He provides a few truths and facts to debunk the misconceptions and steer sellers in the right direction:

Misconception #1 – Sellers determine the home’s selling price

While sellers will have a say in setting the home’s asking price, the selling price of the property is largely based on the market and what buyers are prepared to pay.

It is important that the asking price of the home is what is considered to be a fair market value based on key elements such as the home’s size, condition, location, the current property market conditions and the selling prices of comparable homes in the area.

“It is ultimately the seller who will have the final say as to what the home is listed for, however it is important to note that the initial asking price and the actual selling price of the property could be vastly different,” says Goslett.

Misconception #2 – Pricing the home above market value will leave negotiation room

Overpricing a home does two things – it chases potential buyers away and makes other homes in the area look like a bargain.

A seller may feel that they are giving themselves some cushioning during the negotiating process, but in actual fact overpricing has the opposite effect because it turns buyers away and the deal never gets to the negotiation stage. If buyers have done their homework and researched home prices in the area, they will recognise an overinflated asking price and will likely bypass taking a second look at the property.

According to Goslett, there might be buyers who can afford to purchase the property for its fair market value, but overlook the property if it is listed for too much. There is also the matter of buyers who can afford the inflated price, but soon realise that home may not compare to others in a similar price bracket.

Overpricing will lead to the alienation of buyer pools, which can result in the property sitting on the market for longer than it should and ultimately selling for less than it should.

Misconception #3 – There is no need to spend money on the property before selling

There is a market for buyers who are looking for a home they can fix up or renovate themselves, however most buyers want a home that they can simply just move into.

“There is no need to completely update the home, but it will be easier to sell a property that is aesthetically pleasing and well-maintained. This could be merely a matter of a coat of paint and a few minor repairs. It would be ideal to have any major repairs done before the home is placed on the market, but the extent of what is done to the home will depend on the buyer’s financial position and time frame.  If any defaults are found during an inspection, the seller can then discuss options with the buyer regarding additional repairs or dropping their asking price,” says Goslett.

Misconception #4 – Renovations and home improvements pay for themselves when you sell

Although certain renovations and home improvements will add value to the property, very few renovation projects will provide a complete payback on the money invested.

Goslett says that before embarking on any project it is important to get expert opinions on what should be fixed or changed and what kind of return can be expected as a result.

“Debunking misconceptions and knowing the truth about selling will help homeowners to get the most out of their property transaction. It is always best to take advice from a trusted source that can provide accurate and helpful information. If ever in doubt, sellers should seek out the counsel of a reputable real estate professional who will be able to guide them in the right direction,” Goslett concludes.

This article “4 Home Selling Misconceptions Debunked” was issued by RE/MAX Southern Africa.

Leave a Reply

You might also like...

4 Home Selling Myths Exposed
10 Ways To Chase Away Your Home Buyer
4 Elements That Influence Property Pricing
5 Lies Real Estate Agents Tell You
5 Things To Avoid When Selling Your Home
Repo Rate Cut: Encouraging News For Home Buyers
Is Now The Right Time To Upgrade To a Bigger, Better Home?
Why Creditworthiness Is Just As Important For Tenants
Is Investing In Property During The Recession Still A Good Idea?
28 Important Questions To Ask When Buying Property
Is Hosting Your Property On Airbnb Legal?
5 Easy Ways to Sell Your Home FAST!
Divorcing And Need To Sell? 3 Possible Options
Unrealistic Expectations Can Sour Relations With Agents
Poor Economy Affecting South Africa’s Property Market
Does The Property Market Still Need Estate Agents?
New Landlords Need Experienced Agents
Make Your Bond Work For You
The Perils of Rising Consumer Debt For Landlords
The Gap Between Asking and Selling Price Widens
First-Time Home Buyer? How To Avoid Tax And Get Up To 44% More Space
Is Now The Right Time To Upgrade To a Bigger, Better Home?
Is Investing In Property During The Recession Still A Good Idea?
28 Important Questions To Ask When Buying Property
3 Most Annoying Things About Buying A Home (And How To Avoid Them!)
House Hunting: How To Get Over The One That Got Away
Factors To Consider When Letting Out Property
7 Deadly Sins to Avoid When Investing in Property
4 Hot Tips For Investing In Student Accommodation
Is Property an Asset or Expense?
Property Buyers Value Lifestyle Over Value-Growth Prospects
How Older Buyers Show The Power Of Home Equity
How To Make Your Offer To Purchase More Attractive To Sellers
How To Find Your Diamond In The Dust?
Essential Questions For Home Buyers To Ask Their Real Estate Agent
Top Tips For Selling Your Home in Winter
5 Easy Ways to Sell Your Home FAST!
Unrealistic Expectations Can Sour Relations With Agents
Cut Your Price and Get The Jump on Other Homesellers
Unrealistic Seller Expectations Contribute To Declining Sales
Key Aspects And Features That Sell Homes
Lightstone predicts a buyer’s market for 2017
House Won’t Sell? Here’s What You’re Doing Wrong!
Factors that determine property value
Create Home Buyer Appeal Through Home Staging
Is There A Difference Between Offers?
How To Decide When To Sell
Does My Agent Care About Me Or Just The Commission?
3 Questions To Ask Before Listing Your Home
I Just Bought A Home – Now I’m Unexpectedly Being Transferred
Why Creditworthiness Is Just As Important For Tenants
Factors To Consider When Letting Out Property
New Landlords Need Experienced Agents
The Perils of Rising Consumer Debt For Landlords
First-Time Tenant? What You Need To Know
Average residential rental values on the increase
Is It Possible To Terminate A Lease Agreement Without Recourse?
New Generation Digs Now On The Rise
When Is Your Rent Due?
Gauteng Property Rental Market Forecasts Growth
Keeping Track of Parking On Common Property
How And When To Legally Evict Tenants
The Rental Housing Amendment Act: Waiting For Light In The Dark?
Tenants: Be Aware Of Ongoing Credit Checks
How To Rent With Pets
Divorcing And Need To Sell? 3 Possible Options
5 Mistakes To Avoid When Relocating
7 Tips For Packing And Moving Quickly
Moving? Things To Think About!
Maximising Small Spaces
7 Tips To Help Your Children To Adapt To The Move
What To Do With Your Home When You Have To Relocate
Moving With Pets Can Be Tricky
Estate Agent Moving Tips
Telltale Signs You Need A New Home
Seven Signs You Need A New Nest
Über Wealthy On The Increase And On The Move
First-Time Home Buyer? How To Avoid Tax And Get Up To 44% More Space
Repo Rate Cut: Encouraging News For Home Buyers
Is Investing In Property During The Recession Still A Good Idea?
4 Hot Tips For Investing In Student Accommodation
Make Your Bond Work For You
Energy-Saving Tips For Your Home This Winter
Costs To Consider When Investing In Property
Smaller Properties Yield Great Investments
8 Myths Preventing People From Real Estate Investing
Own Fixed Property? You Need a Will!
Tax Tips for Landlords – What You Need To Know
The Perfect Investment Property
St Francis Bay’s housing market attracting top dollar
Factors that determine property value
Average residential rental values on the increase
Is Hosting Your Property On Airbnb Legal?
How To Protect Your Commercial Property Investment
Commercial property still important asset class for private buyers
Know The Risks Before Building Airbnb Castles In The Sky
Green Buildings Catching On In South Africa
Digital Disruption And The South African Commercial Real Estate Market
Can You Run A Business From A Sectional Title Home?
What’s Driving Change In The Commercial Property Sector?
5 Ways Commercial Property Space Planning Can Save You Money
Investing In Commercial Property an Attractive Option
3 Obvious Signs That It’s Time For Office Relocation
3 Things You Need To Know Before Buying Vacant Land
Price Correction In Commercial Property Market
South Africa: Evolution of Industrial Properties
The Commercial Times Are Changing