Myths are commonplace in our world; it can be hard to distinguish between the truth and fiction with such established lore. Unfortunately, myths are profuse on both sides of the transaction when it comes to real estate. On Myth Mondays, we will be analyzing common real estate myths and using our experiences/knowledge to label them as truth, fiction, or somewhere in between.
THIS MONDAY, WE WILL FOCUS ON SELLER REAL ESTATE MYTHS:
- You should price your house higher so you have room to negotiate.
- Home values listed online are accurate.
- You should always renovate your kitchen & bathroom before you sell.
- Going with the first buyer is never a good idea.
- Selling a home is just how it looks on TV.
MYTH ONE: YOU SHOULD PRICE YOUR HOUSE HIGHER SO YOU HAVE ROOM TO NEGOTIATE
Overpricing a home is not the best tool to facilitate negotiations. The first step in starting negotiations with a buyer is getting them through the door, overpricing a home can prevent them from ever happening.
Additionally, buyers categorize homes in their minds often by price point; overpricing a home will lead to stiffer competition in the minds of buyers, as it bumps it into a different category of homes that may have more bells and whistles.
Overpriced homes are more likely to stay on the market for longer, which can lead to buyers questioning the issues that may be causing a longer length of time – when it is all due to price.
If you’d like to learn more about the issue with overpricing homes, check out our blog post on the topic by clicking here.
Myth One: Busted
MYTH TWO: HOME VALUES LISTED ONLINE ARE ACCURATE
An innovation in the world of real estate is the ability for sellers to look up estimates about their home prices online with websites like Zillow & Realtor. However, some sellers take these online prices as total truth – when in some cases, they may be misleading.
The estimates are calculated through an algorithm based on the price/square foot in the area. In this way, it is automated, focused on patterns, and does not give value to unique property aspects. So, although these estimates can certainly provide some insight, they may not be 100% accurate in all cases; especially if it is a unique property or there is a sudden market change that the algorithm has not accounted for in time.
It is important to note though that the algorithms have been worked on and are gradually becoming more nuanced, but at this point, it doesn’t seem that they can account for all property benefits.
Myth Two: Busted
MYTH THREE: YOU SHOULD RENOVATE YOUR KITCHEN & BATHROOM BEFORE YOU SELL.
Renovations are something sellers need to consider before putting their home on the market. Often, major renovations, like that of kitchens & bathrooms will not result in a major return on investment.
A Zillow study found that a “mid-range bathroom remodel of $3,000 or less could bring back $1.71 for every dollar spent,” while higher-end remodels saw a more modest .87 cent return on the dollar. Meanwhile, Zillow found that kitchen remodels saw a return of .50 cents. So, if you’re remodeling these two areas solely for a return on investment, it is generally not advisable. However, minor touch-ups may be a good idea, with changing out fixtures or cabinet pulls to more universal options to help present more of a blank canvas for interested parties to imagine their own lives in the home.
If you’re interested in learning more about remodeling or selling as-is and our agent’s thoughts – check out our previous blog post on the topic.
Myth Three: It depends on the property and the seller
MYTH FOUR: GOING WITH THE FIRST BUYER IS NEVER A GOOD IDEA.
Some sellers go into a sale with the intention of not taking the first offer because they don’t see it as a good idea. They think that something better will always come along; however, that may not be the case. It is always a good idea to carefully consider all offers – no matter what order they come in.
There are situations where it might be a better idea to wait and others where you may want to take that offer – it is all dependent on the situation. A good agent will be able to walk you through all the considerations
Myth: Talk to your agent to get the best option for you!
MYTH FIVE: SELLING A HOME IS JUST LIKE HOW IT LOOKS ON TV
We all know it, HGTV. The channel were we can see home selling, renovating, updating, and building all the time!
There are so many television shows that showcase the process of home selling & buying. However, like most things on television, there is an element of production that separates it from reality. In this way, it makes it look like buyers only choose from a few homes, that sellers make decisions in minutes, and that open houses always sell a home. Although it does make for excellent television, it can be confusing & disheartening when real-life selling doesn’t work out the same way.
Myth: Busted (but that doesn’t mean you have to stop enjoying all of your HGTV shows!)
OVERALL. . .
Myths can easily influence people’s choices and viewpoints on things. In the case of selling a home, it’s an important thing to be able to see clearly and not be influenced by the rampant misinformation. We hope that this gives you a better idea of whether these particular myths are truth, fiction, or something else. If you have any more myths or viewpoints on selling real estate that you’re wondering about – please contact us; one of our qualified agents would love to help you!
