Whether you are buying or selling a home for the first time, or you are a seasoned veteran of buying/selling real estate, chances are you think you have the knowledge needed to navigate the process based on what you have read or heard from friends and family. Unfortunately, there are a plethora of myths circulating about buying and selling a home that have become prevalent, but just are not true. The pitfall of believing everything you hear or read is that real estate myths can hurt you where it counts…in the wallet.
Here are eight common ones that can cause home buyers/sellers to make unnecessary mistakes:
SET YOUR HOME PRICE HIGHER THAN WHAT YOU EXPECT TO GET
Setting your asking price too high may net you a lower price. That’s because many shoppers and their real estate agents will not look at houses that are priced above market value. While it is true that you can lower your price if you have not gotten offers in the first few weeks, “Buyers are highly suspicious of houses that have sat on the market for more than three weeks,” says Nela Richardson, chief economist for the brokerage Redfin.
YOU CAN GET A BETTER DEAL AS A BUYER WITHOUT USING A REALTOR
This is a false assumption. When a house is listed with an agent, the total sales commission is already built into the price. If the buyer doesn’t use an agent, that just means the selling agent will get the entire commission.
YOU CAN SAVE MONEY BY SELLING YOUR HOME YOURSELF
While it is possible to successfully sell your home on your own, there is a great deal of work that goes into it. You must know how to get the home listed online, market it to prospective buyers, negotiate the contract and deal with any issues that arise during the inspection or loan application phases. In addition, buyers will expect a significant discount, so what you might save on real estate commission may not be as much as you thought it would be.
THE MARKET WILL ONLY GO UP
Over the years, homebuyers and sellers have experienced a time of increasing home values, then a sharp decline due to the economy and then an upturn where values increase again. But many people believe the market only goes up. You need to be aware that prices can fall dramatically.
YOU SHOULD RENOVATE YOUR KITCHEN AND YOUR BATHROOM BEFORE YOU SELL
If your kitchen and bathroom are in working order, an extensive remodel could be a mistake. Potential buyers might not like what you’ve done with the place, but they don’t want to change something that has just been renovated. You are better off adjusting your price accordingly.
YOU’LL EARN BACK WHAT YOU SPEND ON RENOVATIONS
Repairing things like your heating system, air conditioner or roof may help your home to sell faster, but you probably will not recoup what you spend. The only renovation that is likely to net you anywhere close to what you spent is adding manufactured stone veneer. You will likely only get back 58.6% on a full kitchen renovation. And redoing your bathroom might get you 56.6%.
ALL THE PROPERTIES LISTED IN THE MULTIPLE LISTING SERVICE SHOW UP ONLINE
Your agent must choose to let the listings show up online. Most do, but it’s a good idea to verify that yours will.
OPEN HOUSES SELL PROPERTIES
Homes rarely sell to buyers who have visited them during open houses. Agents like to have open houses because it helps them to find additional potential customers. If you and your agent opt not to have an open house, it probably won’t hurt your chances of selling. On the other hand, having a broker’s open house for other agents might be worthwhile.
If you’re thinking about selling or buying a home in the New River Valley area, contact professional, experienced Realtor Desi Sowers and let her assist you with all your real estate needs. Give her a call today at 540-320-1328!