After 20 years of selling real estate, I have a considerable collection of "Myths vs. Facts." In today's real estate market, it is essential to identify which is which. For any of you who have been in real estate for more than a week, you've probably already encountered most of them. Hope this helps!
Myth: "Houses just aren´t selling."
Fact: MOST houses aren't selling, it's true. The good ones still are, however, and at prices that are at or very close to the asking price, provided the asking price is nota pipe dream to begin with. The "good ones" are those that have been properly prepared for marketing.
Just last week I had a transferee shopping for homes in the $350,000 - $400,000 range. I was amazed! Even in that price range, sellers had not prepared their home to sell. Carpeting was worn and shadowy from frequent traffic, countertops were stained, scorched or scratched, the homes smelled of cigarette smoke and pet odors. Not just in one or two of the homes, but every one! Except for the next-to-last home. Pristine. Great colors, completely updated, clean, clean, clean. And at the same price as the others. Hmmm, which one did they buy? Take a guess.
Myth: "We should price it just a little higher to leave room to negotiate down to the price we really want."
Fact: That is the major reason MOST homes aren't selling. Instead of having a price that causes a buyer to fear losing it to another buyer, sellers (and weak agents) "play the real estate game." They try to out-think buyers and wind up outsmarting themselves. Today's buyers are smart; they are extremely well-informed. If you want to play the "real estate game" in a buyer's market, you will lose.
Myth: "The Multiple Listing Service (MLS) is really what sells homes, so it doesn´t matter which Realtor® you choose to list your home."
Fact: Fewer than 40% of the homes listed on the MLS sell. That´s right! More than 6 out of 10 homes listed on the MLS DO NOT SELL. Choosing an agent with an aggressive marketing plan and proven track record for getting homes SOLD could make all the difference in whether your home sells, when and for what price.
Myth: "My brother-in-law has a real estate license and sells real estate on the side. He can sell our home."
Fact: You've heard of the 80/20 Rule - 20% of the people in any industry - cars, insurance, whatever - do 80% of the business. In real estate, the ratio is even more extreme. Recently, the National Association of Realtors indicated that 5% - 10 % of Realtors in any geographic market account for more than 90% of the real estate transactions in that area.
Think about it. The successful 10% of real estate agents do 90% of the business and the other 90% fight over the 10% of scraps that are left. Consistent success doesn't happen by accident.
Unless your brother-in-law is in the top 10% (and can prove it), hire a Realtor with a proven record of success.
Myth: "We can always come down if we get an offer; we want to leave room to "negotiate.´"
Fact: Typically, buyers want to buy the most home they can afford. If your home is in the wrong price bracket, you will be competing against other homes with more to offer. You won't see an offer, especially an offer you can accept. Overpricing will exclude your legitimate buyer and leave you with "low-ballers" who are looking for a bargain.
Myth: "We can always come down but we can't go up in price."
Fact: You can do anything you want - down, up, sideways. But if you're hiring a Realtor to give you good advice, it's probably a good idea to listen to him or her.
Just a week ago, a couple wanted to overprice their home and just "test the market." After explaining such a strategy in this market would most likely fail, I finally looked at them and said, "Now let me get this straight. YOU called ME to list your home because I am an expert in the area, one of the most knowledgeable, experienced and successful agents in West Michigan and you want me to do precisely what the UNSUCCESSFUL real estate agents do, is that right?"
Myth: "It only takes ONE buyer."
Fact: Actually, it takes at least TWO -- one to write out a buy/sell agreement and the other to scare 'em into it.
Buying a home is the largest single purchase most people will make in their lifetimes and the longer they can put off making a decision, the better. Buyers shop till they drop ... or until they find a home that is close to what they are looking for and recognize that someone else will buy it out from under them unless they act quickly.
Myth: "If I spend money redecorating, maybe I won´t choose colors a buyer will like."
Fact: You are probably right. That is why you should get the advice of a good Realtor, one who knows what buyers are buying. Remember this: Buyers want to see themselves living there, and it is often very difficult for them to see past olive-color carpeting, harvest gold appliances or powder blue bedrooms.
Myth: "I need to price my home at $(insert amount here) in order to be able buy my next home."
Fact: Buyers will offer a fair market value for your home without regard to your personal finances. Pricing your home based on what you need for your next home is like pricing a used car $2,000 over Blue Book because you owe money on your credit cards.
Myth: "I had an appraisal done when I refinanced two years ago and it says my home is worth $ (insert amount here)."
Fact: Appraisals are not buy/sell agreements. They are nothing more than one appraiser´s opinion of value. Only the marketplace can establish a true value for your home -- that is, the amount an able and willing buyer will pay for the property.
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