Here are four myths you shouldn’t believe when selling your home.
Today we’re sharing four myths about selling your home in our current seller’s market and the truth behind them:
1. You don’t need to renovate. Most people have heard the myth that you can simply throw your home on the market, and within 24 hours you’ll get 50 offers for $100,000 over list price. While that has happened, it’s a special circumstance. You may not need to do a full remodel, but painting, cleaning, decluttering, fixing up the yard, and maybe adding new carpeting will help you sell. Even if you don’t spend much money on it, people can be lazy, so buyers don’t want to walk into a home where they see that an array of work needs to be done. It’s true that there aren’t a plethora of houses on the market right now, but people will still pay more if the home is renovated and move-in ready.
2. You can price your home however you want. Some people believe you can price your home sky high and still sell these days. We call that dreamland. Just because your neighbor got $100,000 over list price doesn’t mean you can start there.
This is where a professional real estate agent comes in; you want to sit down with them and discuss pricing. Don’t just look at what homes recently sold for, also look at what the homes on the market are listed for right now. Don’t list at a price that will immediately make buyers angry because they won’t come to look at it if it’s too expensive. Figure out a price to start with that will get buyers eager to view your home, then let a bidding war begin.
3. You don’t need to market the house. The real estate market is on fire, so you don’t have to do any marketing. Who needs photos? No one cares; buyers will buy it even if they haven’t seen it, right? No, none of that is true.
No matter the price point, but especially as it gets higher, marketing is crucial. Home searches always start online, and when you see something that catches your eye, it’s easier to imagine yourself living there. Get with a real estate team like ours that does professional videography, photography, 3D tours, and maybe a drone flyover if it makes sense for your property. Marketing is still worth doing because it will always help rather than hurt.
4. The highest offer is the best offer. The market’s hot, and though it’s softened a little, we still have bidding wars. Does that mean you should always choose the highest offer? Though it’s difficult to walk away from the largest amount of money, the highest offer isn’t always the best for you.
Just last week, we had a buyer client from California who sold their property and had cash. We submitted an offer on a home they liked that received seven other offers within 24 hours. We did our thing; we had an escalation clause, offered above list price, made some money non-refundable right away, and were able to go higher on price than any other offer.
I found out later that we were the second-choice offer. We were offering the most money, but we lost to another offer that offered more money upfront. There was no escalation or game, and the 80-year-old couple liked that. They ended up leaving money on the table.
So even when you have the best offer, it won’t always matter; terms matter most. Often it comes down to knowing what the seller is looking for; we thought we knew it in that case, but that other offer hit them just right. If someone is paying with cash over financing, if they’re buying as is without multiple inspections, or if they’re offering a leaseback, those things can be enticing to sellers. Just because you aren’t the highest price doesn’t mean you won’t win the home, and if you’re selling, don’t just choose the highest price.
Don’t forget to call or email us if you have questions about these myths or any other real estate matter. We can’t wait to speak with you.