Busting those pesky real estate myths – Part 1!
Myth #1: Pricing high translates to getting a higher price.
In reality, that is probably not going to happen. Ever hear of comparison shopping? If a buyer discovers that your condo is priced $40k higher than comparable units, yours probably won’t even make the cut for showing.
Remember! Buyers are not interested in negotiating. They will usually just walk away if the price is not on par with their terms. Buyers are in the position to take the “actively searching but not desperately seeking” approach.
A house for sale has more sales potential when it is fresh on the market. The longer it stands, the more potential buyers might become wary of its listing longevity. “There has to be something wrong with it. Why has it not sold? What are the sellers hiding?” Once that listing goes beyond its expiration date, it’s going to get stale.
Studies have indicated that the longer a house sits on the market, the lower its price becomes. If it entered the market for $975,000, its final price may barely keep its head above water at $870,000, and that is not the direction in which you want to go.
Myth #2: “Well, that agent told me I can get $XX for my home.”
Did you know it is not the agent who determines what your home is worth? Leave that to the buyer. If an agent tells you he can get you top dollar for your home, don’t follow that carrot too enthusiastically. Most likely, your home will sit on the market for far too long and the asking price could plummet drastically.
Instead, choose an agent who is willing to invest the necessary time, talent and energy into selling your home. Someone who puts a premium on photographs, staging and the overall marketing of your home is a much better choice of agent than one who tries to get you to believe that you will get top dollar for your home just because he thinks he can get that for you. Do you want to partner with an agent who guesses or with one who calculates and invests in the process for you?
Myth #3: An agent comes to your door with a bona fide buyer at the ready.
This should make you laugh, as there has to be a punchline here. In reality, this is just an agent’s sneaky way of encouraging you to sell. More than likely, he doesn’t have an interested buyer but he does have an interest in wanting to list your house for sale. Just tell that agent, “Have your agent call my agent (the one who would be handling your sale if you did decide to sell), and then we’ll talk.” Don’t let your agent hold his breath too long!
Stay tuned for Part 2 next week!