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:
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| 1. |
Myth: |
You should always price your home high and gradually correct
the sales price downward. |
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Truth: |
Pricing too high
can be as bad as pricing too low. |
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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. |
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| 2. |
Myth: |
Minor repairs can
wait until later. There are more important things to be done. |
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Truth: |
Minor repairs
make your house more marketable, allowing you to maximize
your return (or minimize loss) on the sale. |
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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. |
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| 3. |
Myth: |
Once potential
buyers see the inside of your home, curb appeal won't matter. |
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Truth: |
Buyers probably
won't make it to the inside of the home if the outside of
your home does not appeal to them. |
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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. |
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| 4. |
Myth: |
Once potential
buyers fall in love with the exterior look of your home,
you put interior improvements on the back
burner. |
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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. |
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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. |
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| 5. |
Myth: |
Your home must
be every home buyer's dream home. |
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Truth: |
If you get carried
away with repairs and replacements to your home, you may
end up over-improving the house. |
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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. |
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| 6. |
Myth: |
Buyers are
unswayed by sellers that offer creative financing options. |
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Truth: |
By offering flexibility
in financing options, you may lure even more prospective
buyers. |
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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. |
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| 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. |
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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. |
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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?
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| 8. |
Myth: |
Good sellers
are available to guide prospective buyers through the home,
giving the whole process a more personal
touch. |
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Truth: |
Prospective
buyers will feel more that "this
house could be" their home if the current owners are not
there. |
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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. |
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| 9. |
Myth: |
Successful
sellers insist that the terms of the sale happen their way
or no way. |
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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. |
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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.
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| 10. |
Myth: |
When you
receive an offer, you should make the buyer wait. This gives
you a better negotiating position. |
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Truth: |
You should reply
immediately to an offer! |
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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. |
