If you live in a hot real estate market, the rumor mill is constantly spinning. Neighbors share stories about houses selling way over asking price, sight unseen! For sellers, these stories are encouraging but often misleading.
Many of these home-sale tales are anomalies. Not every seller will see the same results; especially if they price themselves out of the market hoping to be the next real estate success story everyone in town is talking about. With buyers exiting the market until things cool down, lower prices and inventory numbers up, we wanted to share some common real estate myths from Realtor.com’s recent post and the truth behind them.
- ‘You don’t need to renovate—buyers will take anything’
Even in a super competitive market, like we are currently seeing, a seller cannot expect to garner top dollar for their home, if they are unwilling to make repairs or upgrades. Houses that need too much work can be a turn off to buyers, as many in today’s market are looking for move-in-ready.
The truth: Taking time to clean both inside and out, freshening up paint where needed, and minor repairs and upgrades, can go a long way.
- ‘You can price your house sky high and get that amount’
In a hot market, sellers often feel they can list their home for whatever price they’d like. They need to consider that buyers need to see the list price as realistic based on the type of home, location and condition.
The truth: Pricing too high could cause the home to sit on the market for too long. This can create doubt for buyers, and lead to a lower sale price.
- ‘Sellers don’t need to market their listing much—it will sell’
Just because the market is hot, does not mean no effort should be put into the marketing of the home. Listing details, photos, videos, virtual tours, etc. are all important pieces to a successful listing.
The truth: Many homebuyers start their search online. The more information you can provide potential buyers, the greater success you’ll have in bringing in solid prospects.
- ‘In a bidding war, it’s a no-brainer to just pick the highest offer’
When sellers ask for potential buyers highest and best offers, many believe that the seller is going to take the highest offer price. This is not always the case because the highest offer may not be the best.
The truth: A seller often considers the terms of the offer as well. All cash can be attractive because it takes financing hurdles out of the equation. Buyers who have flexibility in regards to closing date, giving the sellers more time to find their next home, can also be quite appealing.
Read the full article from Realtor.com, as they provide additional insight. Then, if you are thinking about selling your home, or buying a home for that matter, take some time to discuss the market with a local realtor. They will be your voice of reason to ensure your next move is a success.