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Brian Petrelli
303-817-0209
bpetrelli@kw.com
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10 Biggest Selling Myths Uncovered
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.
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