You’ve heard it all before — buyers and sellers don’t need an agent, spring is the only time to sell, to heck with an inspection…the list goes on.
There are many myths floating around that are simply not true. In order to keep everyone informed on the buying and selling process, here are six real estate myths we busted.
FSBO deals make more money!
Many sellers feel that by selling their home themselves they’re going to make more money off the sale. True, some FSBO sellers have been successful, but more often than not they already had the right knowledge and/or experience to pull it off. The fact is, however, a majority of FSBO deals end up costing more, either in money lost during the sales negotiation or from contract details missed along the way.
Sellers will earn back the money — and then some — invested into the home
While it’s true that remodeling certain rooms like the bathroom or kitchen can help the home look more appealing, sellers should not expect to receive back every last penny they put into their home just prior to the sale. Necessary improvements, like a damaged roof, should also be made without the expectation of getting a big return on investment. Sellers should be informed that while putting money into certain areas can help raise the selling price it won’t guarantee them a 100% or more return at time of sale.
Buyers should wait until spring to find a great home
We all know that spring is typically the busiest season in real estate, but that doesn’t mean a buyer should stop from house shopping in the fall or winter. There might be less inventory on the market in the off-season, but there are almost always some good opportunities out there. In fact, you may actually land a killer deal in the dead of winter as sellers have a tendency to be more motivated to sell.
You don’t need to stage or prep a home
Some sellers might be under the impression that if their house is in pretty good condition they won’t need to prep it for showings. Not so. Even if the home is in great condition or has been recently renovated, there are usually some staging details and minor improvements that can be made to enhance the home’s appeal. A seller should trust your judgement — or a professional home stager you recommend — when it comes to setting up the home for listing photos, showings and open houses. A well-staged home could be the difference between getting the asking price or having to settle for less.
You don’t need a home inspection
This is 100% false. As a buyer’s agent, it is always wise to get the home your customer wants to buy inspected immediately after getting an offer accepted. Even if the home appears to be in great condition or is in a brand new neighborhood, there may be a potential problem lurking that the home seller either doesn’t know about or — heaven forbid — failed to disclose. If you happen to find something wrong, you can use that to your advantage when negotiating price. As an agent, you should keep your buyer informed on house inspections and make sure they know that while it’s an added expense, it has the potential of saving them a chunk of cash in the long run.
Overpricing leads to more money
Whether sellers feel like their home is worth more than it is, or think it’s a great way to leave room for negotiation, overpricing tends to scare away potential buyers. The truth is if a home is overpriced then many home buyers will give it a wide berth and instead look at reasonably priced homes in the neighborhood.
Any missing from the list?