Purchasing or selling a home can be a complicated process for many beginner buyers and sellers. Even if you are lucky enough to have family and friends who offer great advice, some things are just not as crystal clear as they sound.
In fact, receiving advice from different sources could actually cause more confusion on a subject that sellers and buyers don’t know much about!
Information is so easily available these days and it can be acquired through a number of places. This makes it difficult to determine what to take seriously and what to ignore.
As a result, there are several home selling myths that are circulating and they have become commonplace in the real estate market.
Many of them simply aren’t true and these myth-breakers will bust it wide open:
Myth #1: Sellers determine the property’s price
Fact: This statement could not be more misleading.
Setting a fair asking price that reflects the value of the house is made up of different factors such as the size of the home, condition, location, the current property and market conditions, and the selling prices of similar homes in the area.
It is true that the seller makes the final decision when it comes to listing an asking price, but the actual selling price is largely determined by the buyers and what they are willing to pay for that specific house in the current market.
The initial asking price can vary greatly from the selling price and what is paid upon purchase. Sellers often have to negotiate with buyers or adjust the price if the home is still listed after a long period of time.
Myth #2: Overpricing the home will leave room for negotiation
Fact: Instead of creating the effect that sellers want, overpricing the home could actually turn interested and potential buyers away.
Overpricing a home makes it look less attractive to buyers, especially to those who have done their research and their homework regarding homes in the area.
There may be buyers who can afford to purchase the property but might feel like the price does not accurately reflect its value. Buyers who can afford the home might also start realizing that similar houses sell for a price in a different pricing bracket.
Alienating buyers can result in the property sitting on the market for much longer, prolonging the sale of the house.
Myth #3: There is no need to make repairs and get the home sale-ready
Fact: While there is a market for buyers who want to repair a home, most buyers want a home that is ready to move into.
A home that looks good from the inside out and that is well-maintained home will definitely be easier to sell than a neglected house. It is important to consider doing repairs before listing the home.
Upon viewing, any experienced real estate agent will also mention the reparations that have been done and this can be a huge selling point.
Myth #4: Renovations and home improvements pay for themselves when you sell
Fact: Certain renovations and improvements can offer an excellent return but very few of them will provide payment in full upon selling the home.
Before embarking on any renovation project, it is wise to get expert opinions about what should be fixed or changed, how that will influence the value of your home, and what the returns on such an investment would be.
Knowing the facts will enable sellers to get the most out of their property transaction.
If homeowners are ever in doubt, a professional real estate agent will be able to assist with any advice and guidance.