Selling a house can create all kinds of fears and concerns. Learn the difference between the myths and truths to alleviate some of those worries!
Myth #1: You should always price your home high and then negotiate down.
Truth: It is difficult to obtain a reasonable offer on an overpriced property.
If you list too high, you’ll miss out on buyers (as many as up to 60%) looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won’t even take the time to look at it or they have been researching homes online and see the price discrepancy and move on. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents — the first 2-4 weeks it is on the market. The longer a house “sits on the market”, it is like the Kiss of Death, doomed to attract fewer and fewer buyers every day making it harder and harder to sell. To obtain proper market exposure, it is an absolute necessity to be competitive in price, terms, and condition with similar properties that are selling in the area as soon as you put it on the market. If you are serious about selling your home, price your property at market value and attract serious buyers. You will stand a much better chance of getting full-market value and your property will sell much more quickly.
Myth #2: 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.
Most buyers are looking for homes that are turnkey or move in ready. They do not want to have to do a lot of work on a new home (at least “new” to them). If you have repairs that are obviously needed, a potential buyer will think of repairs with the 2/3rds rule. For example, if you have a hole in the wall that would cost $100 to repair in a day, a buyer will think it will take twice as long to repair and cost threes times as much. So your $100 hole of “deferred maintenance” becomes a two-day repair costing $300. A buyer will go through your home adding up all the “little things” that are wrong with it. If your home happens to attract a buyer who is willing to make repairs, they will begin asking for repair allowances that come out of your asking price. The amount of an allowance that you have to offer a buyer is usually more than what it would cost for you to make the repair (or hire someone to make the repair). Also, remember that the home inspections will point out every defect and safety issue which also will potentially cost you even more. Remember, buyers are comparing your home to other homes that are currently on the market. Your home should be maintained, safe and inviting so that everyone who looks at it can see themselves living there.
Myth #3: 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.
Buyers and their agents often do drive-bys before deciding whether a home is worth their time to look inside. Usually, every dollar you spent on landscaping nets you a 100% return! So make sure your yard looks in top shape with trimmed bushes, some pretty flowers, a well-manicured lawn, and a welcoming entry. Your home’s exterior must make a good first impression so that buyers are compelled to stop and come inside!
Myth #4: Your home must be every buyer’s dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house.
There is a point where improving your home doesn’t pay off. The key is to consider what competing properties feature and look like. Improvements in the kitchen and bathrooms often yield excellent results! I will go through your home with you in detail and determine what it makes sense to repair and replace and what doesn’t. You also have the option to use my Stager to maximize your home to showroom condition! I’ll also show you competing properties so you’ll know what you’re up against!
Myth #5: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply in a timely manner to an offer (and remain flexible)!
When a buyer makes an offer, at that moment in time, they are ready to buy your home. Moods can change and you don’t want to lose the sale because you have stalled in replying and you lose your only offer. Occasionally there are strategic reasons to delay for a short time — when receiving multiple offers for example. Let’s work hard to make this a win-win for you and your buyer and work together! I will walk you through every step of the process to help determine the best strategy for achieving your real estate goals!
Myth #6: You are better off selling your home on your own and saving money on 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, or they inadvertently sell it for less than full market value.
Homeowners who succeed in selling their home by themselves (usually net 6-13% less) than if they had a real estate agent working for them. The National Association of Realtors surveys consumers every year, including homeowners who succeeded in selling their home without a real estate agent. Over 70% of these homeowners say that they would never do it again. 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!
Whether you are looking to buy, sell, invest or lease real estate, I can help you achieve your real estate goals, contact me today!
Christine Kalmbach, Professional Realtor® Keller Williams Platinum 832.755.2954 firstname.lastname@example.org * realtorck4u.com
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