10 Home Selling Myths That Are Completely False
If you have ever bought a home, and didn’t experience a smooth transaction you may be fearful of the stress when you decide to sell your home. There is no shortage of information about selling your home online, which is not all accurate. Not to mention you also have a network of family and friends who may have gone through the process, which makes them an expert, right?...Wrong!
Just because something happened to someone you know, or they were advised to do something a particular way does not mean is is correct. There are a lot of myths that can make it harder to sell your house. And considering your home is probably the most valuable investment you own, you cannot afford to make selling mistakes that are often based off of “facts” that are not only useless, but misleading.
Before you consider selling your home, consider the myths listed below, and then contact an experienced Realtor in your area. I happen to know a good one if you are located in Central Maryland ;)
1. Reality TV is NOT how real estate really works
Who doesn’t love to binge real estate TV shows? I am in the industry and am addicted to these shows! Your favorite real estate reality show may be fun to watch, but at the end of the day it is still a show designed for our entertainment. A lot of these shows cut out all of the complicated portions of home buying and selling. They are only showing you three of the homes (maybe) that the buyers looked at. It is SO rare for a buyer to purchase a home after only looking at three properties. When you list your home for sale, it rarely flies off the market at an open house. While these shows are great for entertainment and allow us to see a variety of home styles and features that may help inform you on what should be on your “must have” list, please keep in mind that it is just a show.
2. You need an Open House to sell a home
If you aren’t familiar with what a real estate agent does to market a property for sale, you may think that an open house is a non-negotiable part of the marketing plan. It sounds ideal to open your home up and allow the masses to come in and view it in one fell swoop to limit the inconvenience to you for accommodating multiple showings. If your agent’s strategy is to just hold an open house, then it’s likely that most of the people who come are not in the position to buy it. They may be your neighbors, those looking for something to do or even people daydreaming about being able to buy a home like yours. That is not to say that open houses are not worth it though. If marketed appropriately to an engaged network of agents, an open house can be an effective way to get a pool of qualified candidates. But they are not required in order to sell a home.
3. You set the price when you sell your home
While your home is your property, and you can certainly do what you want with it, setting the price is not something I recommend. The seller doesn’t set the price. The Realtor doesn’t set the price. The market is in fact what set the price! Market conditions overrule how you may feel about what your home should go for. Of course you want to sell for the highest price possible, or at least get what your neighbor got for their home. But home price is determined by the market - all the homes being bought and sold leading up to the time of your sale. Failing to respect what the market is reflecting is a sure way to struggle with your sale. Buyers and their agents know what the market is doing, so there is no way to fool them.
4. You should set your price as high as possible
I don’t know many homeowners who don’t want to sell their home for top dollar. I get it. You want to make as much money as you can. But the problem with this strategy is that homes that are priced too high don’t sell. Buyers avoid these homes. Why look at the highest-priced home in the area when there are plenty of other comparable options? Even if you somehow convince someone to pay above market value for your home, the lender will require an appraisal and will refuse to cover the difference if it comes in under value. Overpriced homes tend to sit on the market and active buyers and agents have seen it and its price drop, leading them to think there is something wrong with it. Your best option is to price it competitively from the start.
5. You want a Realtor who asks for the lowest possible commission
If you don’t know by now, you really do get what you pay for. Realtors are no exception. I know that a low commission can be enticing, but what does that commission really get you? A sign in the yard and an MLS listing with photos taken on their cell phone? On the other hand, an agent that knows they will get paid is likely to work harder. Better marketing, effective negotiation, and likely a higher sale price.
6. You want a real estate agent who isn’t busy
Wrong! I can understand the thought process behind this one. So many sellers think they shouldn’t hire an agent who is busy because they won’t get excellent service. But most top-producing agents have systems in place that make them successful. They typically have great staff in place to help with the repetitive tasks of the process allowing them to focus on what really matters. There are reasons why some agents aren’t busy, and most of the time it’s because they aren’t good.
7. For Sale By Owner will save you money
Seems like a great idea - you sell the home yourself and you don’t have to pay anyone commission. If selling homes was easy, then don’t you think more people would do it? If you are fortunate enough to get someone to buy the home, chances are you won’t sell for as high as you would have with the negotiation help of a Realtor. Selling your home requires targeted marketing, great photos/videos, positioning experience, and negotiating skills.
8. You don’t have to do anything to get your home ready to sell
Well, this one is tricky. This could be true if you are on top of your home maintenance and you maintain your home like a model. Or if you simply don’t care what you get for it. There are some homes that are in such poor shape, they have to be sold “As-is.” However, for most homeowners taking the time to prepare the house for sale can really pay off. It is best to clean the house up and prepare it for potential buyers, as well as fix serious issues before a buyer tries to use it to negotiate a lower price.
9. Online valuations are all you need to price your home
You can certainly go online and look your home up and get a price. But it is not the proce you should be using to list it. There are a lot of factors that are not taken into consideration with online home valuation tools. Zillow home value is almost like WebMD for real estate, get what I’m saying? More often than not the Zillow value is off by tens of thousands of dollars. You are far better off having an experienced Realtor in your area run the comps and give you an estimate of what they think your home could sell for. If you are interested, I can provide you with a free home valuation.
10. My home improvements should be reflected in home price
This may be one of my favorite myths. Just because you spend a certain amount of money on a renovation does NOT mean you get that plus more on your return. Most improvements sellers make to their home don’t yield the return they expected. There is often a disconnect between what a seller thinks their home is worth, and what it really is. There are also a lot of improvements that a buyer in fact interprets as home maintenance that don’t carry any improvement value, but still need to be done. Remember, if you are going to be selling your home, don’t over improve.
