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.
