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10 Myths to Avoid When Selling Your Home

Selling a home is a bit like having a baby—everyone gives you advice (whether you asked for it or not!), in spite of the fact that the experience is unique to each individual every time. And, just like having a baby, numerous myths and “old wives’ tales” need to be debunked. Following are the ten myths most likely to interfere with a successful sale—and the truths relating to those topics.

Myth #1: Price your home high and you can gradually correct the sales price downward later.

TRUTH: Pricing too high can be as bad as pricing too low.

You may have been told by a friend or colleague that listing high gives you the opportunity to accept a lower offer. The truth is that if the listing price is too high to start with, you’ll miss out on those buyers looking in the price range where your home should be. Offers will not come in because the buyers most interested in your home are scared off by an unrealistic price and won’t even bother to look--or have concluded that your home is not worth the price you are asking. By the time you have reduced the price to an appropriate level, you will have lost exposure to the largest group of potential buyers.

As your realty consultant, I will provide you with a comparative market analysis for your home. This document will compare your home to other similar properties in your area and will include the “success stories” (those homes that have sold recently), the “competition” (those homes currently on the market that buyers will compare to your home), and the “rejections” (those homes that did not sell during their listing period, often because their condition and location did not support the price being asked.

Myth #2: Fix-ups can wait until later—after the buyer’s inspection.

TRUTH: Fix-ups make your home more marketable, allowing you to maximize your return (or minimize loss) on the sale.

Most buyers are looking are looking for an inviting home in move-in condition. Buyers who are willing to tackle 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. Think of it this way: every fix-up item the buyer notices serves as a barrier to making an offer. Fixing things in advance will eliminate those barriers.

Myth #3: Once potential buyers see the inside of your home, curb appeal won’t matter.

TRUTH: Buyers won’t go inside if the outside of your home does not appeal to them.

You have only one chance to make a positive first impression. Many buyers today will drive by a home before deciding whether to look inside. Your home’s exterior--in less than a minute--must make a good first impression. Spruce up the view of the home 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 add extra 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.

Myth #4: Once potential buyers fall in love with the exterior, interior improvements are no longer necessary.

TRUTH: Most buyers are looking for an inviting home in move-in condition. Consider spending a few dollars on one or more of the following: painting, if the existing paint is in bad shape or an unusual color; carpeting, if it shows excessive wear or is an outdated color or style; refacing kitchen cabinets; scrubbing bathrooms until they are sparkling clean; or other key repairs or replacements.

You may be uncomfortable making improvements that you will not enjoy because you are selling the home so soon after making those improvements; however, the right work will more than pay for itself in a higher selling price and a faster sale. I will consult with you regarding repairs and replacements that will benefit you most.

Myth #5: Your home must be every home buyer’s dream home.

TRUTH: If you get carried away with repairs and replacements, you may end up over-improving your home.

At some point, improvements that you make may rise well above what is customary for comparable homes in your area. If there are no swimming pools in your neighborhood, spending many thousands of dollars to put one in may raise the market value of your home by only about half what you spent because there are no other comparable properties with a pool to support its market value.

Consider this general rule of thumb: if your improvements push your home’s value higher than 20% above the average neighboring home values, do not expect to recoup the entire cost of those improvements. I will advise you on the scope of projects you might consider in preparing your home for sale.

Myth #6: Buyers are unswayed by sellers who offer creative financing options.

TRUTH: When you offer flexibility in financing options, you may lure more prospective buyers.

Such options include seller financing, paying some of the buyer’s closing costs, including a one-year home warranty, and other buyer incentives. I know the local market and will help you decide what incentives, if any, to offer.

Myth #7: You are better off selling your home on your own, thus saving the commission you would pay for real estate services.

TRUTH: Year after year, statistics reveal that many sellers who attempt to sell their homes on their own cannot complete the sale without the services of a professional real estate consultant. And, those sellers who are successful in selling on their own often net less from the sale than sellers who list their homes with a professional realtor. Why? Because they rarely know the market as well as the realtors who are studying and working within its constraints every day.

You probably visit a doctor when you are in ill health. You may also have a mechanic who repairs and provides maintenance work on your care. And, when you need legal advice, chances are you seek the services of an attorney rather than attempt to represent yourself in court. Doesn’t it make sense that you would take advantage of the services of a real estate professional when you are preparing to sell your biggest asset?

Myth #8: A seller should guide prospective buyers through the home in order to give the process a personal touch.

TRUTH: Prospective buyers are more likely to "try on a house" if the current owners are not present during a showing.

The presence of homeowners and/or other family members in the home when it is being shown can make buyers feel that they are intruding. Buyers need to be able to visualize the home as theirs; this can be difficult when they are acutely aware that it is still your home. As a result, they may rush through a showing instead of taking their time and discussing how they might use a given room or enjoy the backyard. When I show your home, I will point out all the special elements that we have discussed so that the buyer can easily imagine living and enjoying some of the same features that attracted you to the home when you purchased it.

Myth #9: Successful sellers should insist that the terms of the sale happen their way or no way.

TRUTH: If you approach the sale of your home as an adversarial encounter with the buyer, you risk losing a solid buyer for no good reason.

You and the buyer have the same basic end goal: you want to sell your home and the buyer wants to buy it. I will be present for all negotiations. My goal for you is a sale that results in a win-win solution for you and the buyer. And, if both parties are satisfied with the outcome of the negotiatons, very few things will come between you and the closing table.

Myth #10: When you receive an offer, make the buyer wait. This gives you a better angle during the negotiation period.

TRUTH: 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 change and you don’t want to lose a sale because you delayed in replying. Responding promptly shows respect for the buyer and the offer and is likely to result in a win-win negotiation that you can look back on with positive memories.

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