Selling a house can be a bit like having
a baby -- everyone gives you advice that you may or may not have asked
for, in spite of the fact that the experience is unique to each
individual every time. And just like having a baby, there are many myths
and "old wives' tales" to be de-bunked. Among the truths are the
following ten:
1. Myth: You should always price your
home high and gradually correct the sales price downward.
Truth: Pricing too high can be as bad as pricing too low.
Your strategy in listing high may be that
you will always have the chance to accept a lower offer. But the truth
is that if the listing price is too high, you'll miss out on a
percentage of buyers looking in the price range where your home should
be. Offers may not even come in, because the buyers who would be most
interested in your home are scared off by the price and won't even take
the time to look. By the time the listing price is corrected, you may
have already lost exposure to a large group of potential buyers. Your
real estate agent will be able to offer you a comparable market analysis
for your home. This is essentially a document that compares your home to
other similar homes in your area, with the goal of helping you to
accurately assess your home's true market value.
2. Myth: Minor repairs can wait until
later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to
maximize your return (or minimize loss) on the sale.
By and large, buyers are looking for an
inviting home in move-in condition. Buyers who are willing to tackle the
repairs after moving in automatically subtract the cost of needed
fix-ups from the price they offer. You save nothing by putting off these
items, and you may likely slow the sale of your home.
3. Myth: Once potential buyers see the
inside of your home, curb appeal won't matter.
Truth: Buyers probably won't make it to the inside of the home if the
outside of your home does not appeal to them.
Many buyers today will drive by a home
before deciding whether or not to look inside. Your home's exterior will
have less than a minute to make a good first impression. Spruce up the
view of the house by keeping the lawn mowed, shrubs and trees trimmed,
and gardens weeded and edged. Clear the walkways and driveways of leaves
and other debris. Repair gutters and eaves, touch up the exterior paint,
and repair or resurface cracked driveways and sidewalks. You can also
add additional appeal by placing potted flowers out front, hanging a
wreath on the outside of the door, positioning new street numbers, and
putting out a pleasing welcome mat.
4. Myth: Once potential buyers fall in
love with the exterior look of your home, you put interior improvements
on the back burner.
Truth: Buyers have no qualms about walking right out the front door
within 60 seconds if the house doesn't look like it could be theirs.
Remember that most buyers are looking for
an inviting home in move-in condition. You might consider spending a few
dollars on: painting, if the existing paint is in bad shape or an
unusual color; carpeting, if it shows excessive wear or an outdated
color or style; refacing kitchen cabinets; scrubbing bathrooms until
they are sparkling clean; or several other key repairs or replacements.
Although you may be uncomfortable with spending a few thousand dollars
on your home right before you sell it, it's not uncommon for the right
work to more than pay for itself in a higher selling price and shorter
marketing time. Your real estate agent will consult with you about the
repairs and replacements that will benefit you most.
5. Myth: Your home must be every home
buyer's dream home.
Truth: If you get carried away with repairs and replacements to your
home, you may end up over-improving the house.
At some point, improvements that you make
to your home can rise far above and beyond what is customary for
comparable homes in your area. For instance, there may not be another
swimming pool in your entire subdivision. After spending $20,000 to
install an in-ground swimming pool that you hope will lure buyers, you
may find that it only raises the market value of your home by $10,000
because there are no other comparable properties to support the market
value of the pool. As a rule of thumb, if your improvements push your
home's value higher than 20% above average neighboring home values,
don't expect to recoup the entire amount of improvements. Your real
estate agent can advise you as to the scope of projects you might
consider in preparing your house for sale.
6. Myth: Buyers are unswayed by
sellers that offer creative financing options.
Truth: By offering flexibility in financing options, you may lure even
more prospective buyers.
You might consider offering seller
financing, paying some of the buyer's closing costs, including a
one-year home warranty, or other buyer incentives. Your real estate
agent, who has professional knowledge of local market activity, can help
you decide what incentives, if any, to offer.
7. Myth: You are better off selling
your home on your own, thus saving the commission you would have paid to
a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on
their own cannot consummate the sale without the service of a
professional real estate agent.
And those sellers who are successful in
selling without a real estate agent often net less from the sale than
sellers who use do a professional real estate agent. You probably visit
a doctor when you are in ill health. You also likely take your car to a
mechanic for repair and maintenance. When you require legal advice,
chances are that you seek the services of an attorney. Doesn't it make
sense that you should contact a real estate professional when you are
preparing to sell your biggest asset?
8. Myth: Good sellers are available to
guide prospective buyers through the home, giving the whole process a
more personal touch.
Truth: Prospective buyers will feel more that "this house could be"
their home if the current owners are not there.
The presence of homeowners and/ or their
family members in the home while it is being previewed can make buyers
feel like they are intruding. They really do need to be able to
visualize this house as their home, which can be difficult to do when
they are acutely aware that it is still your home. Your real estate
agent will be happy to look out for your home during open houses or
showings.
9. Myth: Successful sellers insist
that the terms of the sale happen their way or no way.
Truth: If you approach the sale of your home as an adversary of the
buyer, you risk losing a perfectly solid buyer for no good reason.
Always remember that both you and the
buyer have the same basic end goal: for you to sell your home and for
the buyer to buy your home. Your real estate agent will join you in
approaching negotiations in a positive frame of mind, which often
results in a win-win proposition for both you and the buyer. And if both
parties are satisfied with the outcome of negotiations, very few things
will come between you and the closing table.
10. Myth: When you receive an offer,
you should make the buyer wait. This gives you a better negotiating
position.
Truth: You should reply immediately to an offer!
When a buyer makes an offer, that buyer
is, at that moment in time, ready to buy your home. Moods can change,
and you don't want to lose the sale because you have stalled in
replying.