Talon News - Good Local News


Seller Edition


Previously, we started a two-partseries on myths within Real Estate and explored the buyer version. This week we will bust some real estate myths that can be hazardous to the financial health of sellers.

Set your home price higher than what you expect to get. Listing your home at too high a price may actually net you a lower price. Buyers and their Brokers often don't even look at homes that are priced above market value, and the buyer's target price range. It's true you can always lower the price if the property doesn't receive any offers in the first few weeks. But that comes with its own set of problems. "Buyers are highly suspicious of houses that have sat on the market for more than three weeks," says Nela Richardson, chief economist for the brokerage Redfin. Currently homes that are well priced and in decent condition are selling quickly in our local market. Some have sold within the first week of being listed for sale. Most Real Estate Brokers will do a no cost, or obligation market analysis on the home to help you determine the price your property will sell at in the current market, and whether it makes sense for you to sell at that time.

You can save money by selling your home yourself. Some people do successfully sell homes on their own, but this requires skills to price the home, get it listed online, market the property to prospective buyers, find and negotiate the contract and then deal with any issues that arise during the inspection or loan application phases. It's not impossible to sell a home on your own, but you'll find that it typically takes longer and buyers expect a substantial discount when you do. What you save on a real estate commission may end up meaning a lower sales price, inspection and repair costs as well as legal fees to complete the sale. It's not impossible to sell your home on your own for the same price you'd get with an agent, but it's not easy.

You should renovate your kitchen and bathroom before you sell. If your kitchen and baths are functional, a major remodel could backfire. Buyers may not share your taste, but they don't want to redo something that has just been renovated. In most cases you're better off adjusting your price and perhaps offering an allowance for flooring and or counter tops, most buyers want to put their own spin on things. When in doubt ask your listing broker! They will have a good idea of the property types within the neighborhood and can help you from over-improving for the neighborhood, or they can give you contact information for their trusted handy-man and or interior designer.

You'll earn back what you spend on renovations. You know your home and you probably have an idea of some items that need a little or a lot of TLC. If you fix the heating and air conditioning system or roof, typically you will sell your house more quickly, but you probably won't recoup what you spent. Remodeling magazine's 2015 Cost vs. Value Report, tells us the only renovation that is likely to net you as much as you spent is a new front door. You're likely to recoup only 67.8 percent of what you spent on a major kitchen remodel and 70 percent of what you spent on a bathroom remodel on a mid-range home. Your listing Broker should be able to walk through your property with you and give you a good idea of things that will most likely be brought up by a potential buyer, inspector, or appraisal (some loan types carry certain property condition requirements such as no chipped paint etc.). You can choose to have those items repaired prior to listing, or market that you will negotiate their repair after accepting a contract on the home.

Open houses sell properties. Who doesn't like to go to open houses!?! The truth is statistically homes rarely sell to buyers who visited them during an open house. A very large percentage of open houses are filled with neighbors or looky-loos who "always wanted to see what that house looked like on the inside!" Brokers like open houses because it enables them to find additional customers who are looking to buy or sell homes. If you or your broker choose not to have an open house, it probably will not hinder the chances for the sale of your home-although holding a broker's open house for other brokers may be worthwhile.


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