Yesterday, I debunked 5 myths about selling your home in a buyer’s market. Here are a few more:
Myth 6: ”We can always come down but we can’t go up in price.”
Fact: You can do anything you want - down, up, sideways. But if you’re hiring a Realtor to give you good advice, it’s probably a good idea to listen to him or her.
Just a week ago, a couple wanted to overprice their home and just “test the market.” After explaining such a strategy in this market would most likely fail, I finally looked at them and said, “Now let me get this straight. YOU called ME to list your home because I am an expert in the area, one of the most knowledgeable, experienced and successful agents in West Michigan and you want me to do precisely what the UNSUCCESSFUL real estate agents do, is that right?”
Myth #7: “It only takes ONE buyer.”
Fact: Actually, it takes at least TWO — one to write out a buy/sell agreement and the other to scare ‘em into it.
Buying a home is the largest single purchase most people will make in their lives and the longer they can put off making a decision, the better. Buyers shop till they drop … or until they find a home that is close to what they are looking for and recognize that someone else will buy it out from under them unless they act quickly.
Myth #8: “If I spend money redecorating, I may not choose colors a buyer will like.”
Fact: You are probably right. That is why you should get the advice of a good Realtor, one who knows what buyers are buying. Remember this: Buyers want to see themselves living there, and it is very difficult for them to see past olive-color carpeting, harvest gold appliances or powder blue bedrooms.
Myth #9: “I need to price my home at $(insert amount here) in order to be able buy my next home” or “I owe $(insert mortgage balance here).”
Fact: Buyers will offer a fair market value for your home without regard to your personal finances or what your mortgage balance is. Pricing your home based on what you owe on it or what you need to buy your next home is like pricing your used car $5,000 over Blue Book because you owe money on your credit cards.
In hardship cases, lenders are working with sellers on “short sales,” transactions which do not net the seller enough to cover the amount owed on the mortgage. A short sale may be your best option but be sure you hire a Realtor who is knowledgeable and experienced in the short-sale process.
Myth #10: “I had an appraisal done when I refinanced two years ago and it says my home is worth $ (insert amount here).”
Fact: Appraisals are not buy/sell agreements. They are nothing more than one appraiser´s opinion of value. Only the marketplace can establish a true value for your home – that is, the amount an able and willing buyer will pay for the property.
Myth #11: “I heard on the news it takes six months (or more) to get an offer.”
Fact: “Average Market Time” – the time it takes to sell – is longer in today’s market for only two reasons: Unrealistic sellers and weak agents.
Agents who are so desperate to get a listing they will take the listing at any price, in any condition, contribute to those homes sitting on the market unsold. Sellers who price their home at the top of its price range (or above) and do not prepare it for market will eventually reduce their price, improve its condition … or both. Or, they may simply remove it from the market.
Homes in exceptional condition, priced a fair market value, are still selling.
Follow this author to see future real estate factoidz: Should you hire a “home stager” to help get your home ready to sell? Is selling now a bad idea … or a really good idea? How can buyers find great buys that aren’t in poor condition?
