There are many misconceptions regarding real estate, especially when it comes to selling a home. With this, advice surrounding the home buying and selling processes has devolved into myths derived in unique experiences of different buyers and sellers over time. While one technique, strategy, or leap-of-faith may work for a friend or family member, it may not generate the same results for you. From claims surrounding the effectiveness of open houses, to how you should be pricing your home, there are many myths circulating in the industry to be aware of as you move forward in your buying or selling process. Keep reading for a handful of common real estate myths debunked.
Almost every seller is looking to receive the highest return possible on their home. For this reason, many sellers follow the belief that they should overprice their home in order to leave room for negotiation. In many cases, overpricing a home is the wrong approach, as many agents and buyers will pass over homes that are priced above the market value. With the internet being used as a tool for buyers, sellers, and real estate agents alike, many buyers are well-educated from home data that is readily available online, such as recent home sales in a particular location. If you set your selling price too high, you may be at risk for your home sitting on market for several months. Many agents today actually suggest pricing your home a just slightly under market value, as it can create a bidding war amongst buyers.
There are many mixed opinions when it comes to financing a home. Many people are under the assumption that they can wait until they have found the perfect home for them. This is where many homebuyers go wrong, as waiting to be pre-approved for a mortgage could potentially set you back several months. After spending a significant amount of time researching and writing an offer, many buyers who wait discover that they are later declined for the mortgage. Also, a buyer should understand that they may be competing against other offers in the process. If you want to get a leg-up on the competition, getting pre-approved is a crucial first step.
To receive the highest return on your home, you need prepare it for sale. The idea that preparing your home is unnecessary is a myth, as curb appeal and updated appliances are necessary for successfully selling a home. Many buyers today are looking for move-in ready homes. With this, preparations such as thorough cleaning, staging, and small improvements are essential for both selling and receiving the greatest return on investment for your home.