There are many false ideas that surround home selling. Sometimes they are ideas that were true in the past but are outdated ways of doing business, sometimes they depend on the current market conditions. And sometimes they’re just completely false! I’m going to review the top 5 misconceptions I run into with sellers, and provide some clarity to the truth!
1. PRICE HIGH TO GET MORE MONEY
This strategy may have worked during the pandemic buying frenzy when interest rates were under 3%, but we’re in a way different market now. Buyers are very savvy these days. They watch home pricing, they go to the open houses, they know their budget, and they search for homes within their price range. If your property price has been inflated, then it’s going to be competing against other properties that appear to be a far better value for the money, rather than sitting in the price bracket it should be in! You cannot fool buyers with an overpriced listing. Pricing at market or right below market value gets the most interest, the most offers, and puts you in a position of strength to counter for the “highest and best offer”.
2. YOU HAVE TO DO REPAIRS
I always recommend getting pre-sale inspections, but repairs are not required by law. Carbon monoxide devices, smoke detectors, and water heater bracing are all required, but repairs are a point of negotiation. The only time you may have to do repairs is if your buyer has financing such as an FHA or VA loan that requires any health and safety risks to be corrected.
3. YOU SHOULD NEVER ACCEPT THE 1ST OFFER
The first offer could be your best (and possibly the only) offer. Some properties only get 1 offer on the home because it has features or location that don’t match the needs of as many buyers as other properties. If you want to hold out for more offers, you always can, but it also means your days on the market are increasing, and buyers start questioning why your home hasn’t sold yet, which devalues it in their mind. Your agent can help advise you whether you should consider your first offer or not. You might just have been lucky enough to have the right buyer come along at the right time.
4. MAJOR RENOVATIONS OFFER THE HIGHEST ROI
Many homeowners believe that if they spend $100,000 on home improvements that they can just add that to the list price when they go to sell. Sadly, it’s not quite as simple as this. Not all remodels have a one-to-one relationship with increased value.
Not all buyers want the same finishes as you do. Many buyers prefer to start with a blank canvas so they can do their own renovations.
That’s not to say that certain renovations are a bad idea, but if you’re only doing them to see a return when you go to sell, then you must do the type of renovation that will bring you the best return. I work closely with my design and project management team to put together a scope of work and a budget for your home to get you the highest return on your investment.
5: IT DOESN’T MATTER WHO YOU HIRE, THE HOUSE WILL SELL ITSELF
In a sellers’ market it’s easy to believe that any house will sell. Truth is it probably will. The bigger question is will it sell for the highest possible price?
We’re all interested in saving money and making money. However, brokerages that offer large discounts need to make quick sales or the business model falls apart. How do they do this? Pricing your home below market for a quick sale and/or pressuring you to take a low-ball offer. So, in the end, you’re likely to net less with a discount broker and the level of service, expertise and marketing provided is typically minimal at best.
Every house in any market will sell within a certain price range…where it sells in that range depends on:
- How buyers perceive the value of the home (affected by house preparation, staging and pricing strategy).
- How many people see the house (dependent on the marketing reach)
- Whether or not the buyers connect with the house (heavily influenced by photography, staging, and the marketing copy). Buyers who fall in love pay more; that’s just a fact.
It’s frustrating when potential sellers seem more concerned with a small commission percentage than with how much more money they can sell their house for with a full service brokerage. My team and I excel at preparing and marketing homes for market, and we will always make getting you top dollar our first priority!
I believe that with Information, Preparation, and Strategy, you can achieve great success. Let me show you how!
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