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Five Myths About Selling A Home Posted On :Nov 12-2015

In real estate, there are endless myths about selling a home. Here are five of the most common and pervasive beliefs.

 

 

YOU GET BACK MORE THAN YOU SPEND ON MAJOR RENOVATIONS. In fact, surveys show that sellers rarely get back more than 75-80% of the cost of significant upgrades. If the upgrades are too specific in style and have compromised the quality, it can return much less, if anything at all. However, carefully selected minor improvements can easily return more than two to three times the investment.  

 

 

SETTING YOUR HOME’S LIST PRICE 10% HIGHER THAN IT IS WORTH IS A GOOD STRATEGY BECAUSE IT GIVES ROOM FOR NEGOTIATING. If a home is listed too high and remains on the market for some time, it may be perceived as “stale” after a while, and buyers will tend to offer far less. There are some pricing guidelines that can minimize that risk, and still allow for room to negotiate.

YOU HAVE NICE FURNITURE SO THERE IS NO NEED TO STAGE YOUR HOME. In fact, a skilled stager creates an “environment” that helps to evoke a more emotional and positive appeal for buyers. Sometime the placement of various furnishings or the combination of accessories can make a significant difference in how the home feels even if the changes are quite subtle or small.

YOU CAN SAVE MONEY BY SELLING YOUR HOME YOURSELF. Of course, an owner can sell their own home and thus not need to pay a listing agent. However, most such sales are done by agents working with buyers, and they will still receive a commission. As buyer’s agents, their primary fiduciary responsibility is to the buyer, which most likely could disadvantage you as a seller in the negotiating process. Also, if you do sell it directly to a buyer, they may expect a 5-6% discount because you do not have an agent representing you.

There are also several potential risks of selling a home without an agent, due to today’s complex selling details. Numerous disclosures must be properly completed, various ordinances complied with, and comparable sales data prepared for appraisers.

ALL REAL ESTATE AGENTS ARE BASICALLY THE SAME, AND PROVIDE SIMILAR SERVICES. In fact, there are significant differences between various real estate agents even in the same office or community. For example, all agents will provide basic marketing such as putting the listing in the MLS, posting a sign and scheduling an open house for agents to preview the property. Some agents offer a more vigorous plan of action to help your property show well and to also provide maximum exposure in print and online.

Other major differences can impact your sale in the negotiation and escrow management phases. Some agents will have far greater expertise in negotiations and in finding creative solutions to issues that may arise. They may be more on-top of the little details that must be properly handled in order to complete the escrow, so you are not one of sellers who have the emotional experience an escrow falling out. That fall-out rate today is between 20-25% in most areas.

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