Top 5 Seller Real Estate Myths as discussed on The Today Show on Monday 1/26/09 with Barbara Corcoran. I will also expand on each topic with my own opinion and experience in my community.
Myth #1: Now is the absolute worst time to sell your home.
They note that it really depends upon where you live because the worst hit markets are beginning to turn around. Also, if you are planning to buy a bigger/more expensive home, the loss you'll take on your currenthome will be more than offset by the bargain price you'll be getting on your next purchase
Myth #2: Never respond to a low ball bid.
Since most buyers today feel obligated to put in low-ball offers, we must deal with these offers. You should come back with a reasonable counter offer. If the buyer is serious, the will probably come up close to your price to close the deal.
Myth #3: The First offer is never the best offer.
Four times out of Five, the first offer is the best you'll ever see. Most of the sellers have convinced themselves to never take the first offer, especially if it is too low for their liking.
Myth #4: I can always reduce my price later.
In the past, sellers (as well as real estate agents) have priced homes high for a few weeks to "test the market". Since buyers search for homes by price brackets, you may loose some traffice. You can also be helping sell someone else's home -- You say how? Well, if a buyer is searching in a particular price range and they see yours (which is overpriced) and they see another home that is superior to yours (larger, more updates, etc...) this just shows the buyer the real value in the other home. Ultimately you will be "Chasing" the market with price reductions.
Myth #5: Before you refinance, shop around.
Usually your best deal will come from your current lender because they want to keep your business. PLUS, the closing cost are generally much lower when you refinance with the same lender. Lastly, you may be spending a lot of precious time researching other lenders.
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