When putting your house on the market, you may be uncertain about what to expect. This uncertainty can be made worse by the fact that there are so many myths circulating about selling a home that it is difficult to separate fact from fiction. To that end, here are a few of the top home selling myths and the reality behind each of them.
Myth #1: I Set the Selling Price
While you certainly do have the right to set the final price that you are willing to accept for your house, the reality is that the price you can sell your house for is determined by market conditions, the size of the home and its location. For this reason, it is important to work closely with your real estate agent to determine a price that is reasonable rather than listening to family and friends.
Myth #2: Overpricing the Home is a Good Sales Tactic
Many home sellers mistakenly believe it is best to overprice their home so they can have extra “wiggle room” for negotiations and, ultimately, make more money from the sale of the home. In reality, overpricing your home is going to cut out a number of potential buyers who will either move right past your house because it is out of their price range or who will disregard your house because comparison shopping told them you were asking too much. Remember, just as you are trying to make as much money as possible, buyers are trying to save as much as possible, too. If your home is unreasonably priced, they won’t give it a second look.
Myth #3: I Can Get a Higher Price By Keeping My House on the Market Longer
Your natural instinct will be to keep your house on the market longer in hopes of someone coming along and offering a better price. More than likely, you will get some offers within a few days of putting the house on the market, which will reinforce the idea that waiting a little longer will pay off. In reality, the longer a property sits on the market, the more likely it is that you will start to receive lower offers. This is because buyers perceive a house that has been on the market for a long time to be one that is having difficulty with selling. In other words, they imagine there is something wrong with the house.
Myth #4: Hiring the Agent with the Lowest Commission Will Increase My Profits
Hiring the real estate agent who takes the lowest commission may seem like a no-brainer. After all, the less the agent takes for a commission, the more money you get to keep, right? While this is certainly true, hiring the agent with the lowest commission can still hit you harder in the pocketbook. For example, if the agent is not able to negotiate a higher commission price with you, he or she may not have the negotiation skills necessary to get a higher price for you. Furthermore, a lower commission may result in less marketing of your home, with the agent cutting corners due to the lower commission cost. Both of these factors can result in a lower selling price for your home.
