A lot of myths are circulating about selling homes. Because the real estate sector is sometimes not well known to the public, some persistent myths have arisen. Buying and selling real estate is simply not something you do every day as an individual.
Determining a reasonable asking price for your home is not easy. But with the right information and knowledge, you get a considerable value. It can make the difference between reaching a sale quickly or having a home for sale for too long. Potential buyers may therefore wonder what is wrong with the home and may lose interest.
Fortunately, we are here to refute some of these misconceptions. Use it to your advantage!
1. Bathroom and Kitchen Renovations are Way Too Necessary
Everyone has a different taste, of course, so that is always a risk of spending a lot on renovations. If people want to do this for a better impression, it is advised to choose something neutral or hire a professional. Also, there is, of course, a reasonable price tag for installing a new kitchen or bathroom, so it is not at all certain whether you will get it out of your home value! In this case, it is especially important to measure whether you can ultimately get this extra cost from the difference in the sales price. Are you in doubt? Then better not do it.
2. The Exterior of The Home is Not Important
From the driveway to the front door, this is where you make a first impression, and it better be good. A neat facade indicates that the house has been lovingly maintained. Structural problems and peeling paint are out of the question. You can use the same tip for your garden. A garden doesn’t need to be excellent, but some maintenance will help with sales.
3. You Should Add the Renovation Cost to The Sale Price
You may have renovated a lot and installed a new kitchen or bathroom. Many people want to recoup that amount and therefore ask more for the home. Be careful with this, because there is a chance that the buyer does not like your taste at all and is not willing to pay extra for this. Nevertheless, a recently renovated modern home always sells better than a fixer-upper.
4. You Better Set the Price High
Potential buyers want to negotiate, so you better set the price of your home high. Nothing is less true. Buyers avoid prices that are not in their price range, so you probably miss a lot of potential buyers—no chance of sale without visitors.
Every seller wants the best price for his home. But putting the house too high on the market with the idea that you can always accept a lower offer is never a good idea. In the worst case, you will not receive any bids at all. Even real estate agents will ignore the property and look for properties that are well and realistically priced. Thus, it’s better to set the price as per market price. You can take the help of a real estate agent for this.
5. Selling a home privately saves you a lot of money
Selling a home is entirely different from selling any other property. If you want to sell your car as a private person and negotiate badly, you will lose a few thousand dollars at most. If you do the same with your home, you can lose tens of thousands of dollars.
Even if you are a good negotiator, this does not necessarily mean that you also know how to determine an ideal asking price, how to market your property, and what additional sales conditions you should include in the contract. Avoid all these pitfalls and rather use a recognized agent.
Myths on Asking price
Do you want to realize the best price for your home? Take these pitfalls into account and price your home realistically.
6. Getting an offer immediately means that my home is priced too low
Many sellers think when they immediately receive an offer that the property is undervalued. Maybe you should have asked for more, or your real estate agent gave the house away. But in reality, it means that the property is priced realistically and has been marketed accurately and competitively. As a result, several bidders have come to the house. The house fetches the right price when there are multiple bids. In a stable market, it means that the market has determined the value for the home.
7. Let’s wait for a better offer
Many sellers assume that they have to wait until there are multiple offers so that they can bid against each other. However, research shows that most homes sold for the best price had a short sale time. In general, the longer the property is for sale, the lower the bids become. This makes potential buyers wonder if there is something wrong with the house and think the asking price may be too high. So, don’t wait too long if you have just put your house up for sale and start negotiations.
8. The online System Has set a Different Asking Price For my Home
Various tools can be found online to determine the value of a home. These are not always accurate because these systems do not include all aspects of the home valuation. So do not focus blindly on the outcome of such a tool. Always hire a professional agent or appraiser to calculate the correct value of your home and determine the asking price together.
9. My agent wants to sell for a low amount
The agent is paid on the basis of commission, i.e., in most cases, he’ll earn a percentage of the purchase price. This percentage is relatively low so that the different offers for the agent only save a few hundred dollars while for the seller, it involves thousands. This can give the impression that the real estate agent agrees for a lower amount than you would like. Trust that the agent has done good market research into what your home is worth. The agent will make every effort to approach the entire market and, from that perspective, find the most suitable buyer for your home.