Four home-sell­ing myths de­bunked

Lesotho Times - - Property -

THE pro­ce­dure of buy­ing or sell­ing prop­erty can be a com­pli­cated process for many novice buy­ers and sell­ers, even with all the ad­vice given from well-in­ten­tioned fam­ily and friends.

Re­ceiv­ing ad­vice and in­for­ma­tion from so many dif­fer­ent sources can lead to un­cer­tainty about cer­tain key as­pects of the sales trans­ac­tion.

This is ac­cord­ing to Adrian Goslett, CEO of RE/MAX of South­ern Africa, who says with the large amount of in­for­ma­tion avail­able to con­sumers th­ese days, it may be dif­fi­cult to de­ter­mine what in­for­ma­tion to take note of and what to ig­nore. As a re­sult, sev­eral home­selling myths have be­come com­mon­place in to­day’s prop­erty mar­ket.

Goslett shares a few facts to ex­pose the myths and steer sell­ers in the right di­rec­tion:

Myth 1 — Sell­ers de­ter­mine the price Goslett says set­ting an ask­ing price that is at fair mar­ket value is a re­sult of many key as­pects such as the home’s size, con­di­tion, lo­ca­tion, the cur­rent prop­erty mar­ket con­di­tions and the sell­ing prices of com­pa­ra­ble homes in the area.

Although it is the seller who will make the fi­nal de­ci­sion as to what the home ul­ti­mately sells for, the sell­ing price is largely determined by what buy­ers are will­ing to pay for the home in the cur­rent mar­ket. The ini­tial ask­ing price of the home can vary greatly from the ac­tual sell­ing price.

Myth 2 — Over­pric­ing leaves the home room to ne­go­ti­ate He says in­stead of al­low­ing ne­go­ti­at­ing room, over­pric­ing a prop­erty can have the op­po­site ef­fect in that it will turn buy­ers away.

Over­pric­ing a home will make it less at­trac­tive to buy­ers, es­pe­cially if they have done their homework and re­searched home prices in the area. There may be buy­ers who can af­ford to buy the prop­erty for its fair mar­ket value, but who will over­look the prop­erty if it is listed for too much.

Buy­ers who can af­ford the in­flated price may soon re­alise that the home may not com­pare to oth­ers in a sim­i­lar price bracket. Alien­at­ing buyer pools can re­sult in the prop­erty sit­ting on the mar­ket for longer than it should, which can lead to the home sell­ing for far less in the end, says Goslett.

Myth 3 — There is no need to make re­pairs and get the home ready for sale While there is a mar­ket for con­sumers who are look­ing for a prop­erty they can ren­o­vate them­selves, many buy­ers want a home that is ready for them to move into.

A home that is aes­thet­i­cally pleas­ing and is well-main­tained will be far eas­ier to sell than one that has been ne­glected. Although it de­pends on the seller’s fi­nan­cial po­si­tion and time frame, it is ad­vis­able to con­sider mak­ing any ma­jor re­pairs be­fore the home is placed on the mar­ket, he says.

The home will be viewed as a ‘ move-in’ op­tion, and the agent can also men­tion the re­pairs as a sell­ing point in the mar­ket­ing ma­te­rial. If any de­faults are found dur­ing an in­spec­tion, the seller can then dis­cuss op­tions with the buyer re­gard­ing ad­di­tional re­pairs or drop­ping their ask­ing price.

Myth 4 — Ren­o­va­tions pay for them­selves when you sell Goslett says while cer­tain ren­o­va­tions and home im­prove­ments will of­fer an ex­cel­lent re­turn on in­vest­ment, very few ren­o­va­tion projects will pro­vide a com­plete pay­back on the money in­vested.

Be­fore em­bark­ing on any project, it is im­por­tant to get ex­pert opin­ions on what should be fixed or changed and what kind of re­turn can be ex­pected as a re­sult.

“Hav­ing the facts about sell­ing will help home­own­ers to get the most out of their prop­erty trans­ac­tion.

If ever in doubt, sell­ers can seek the ad­vice of a rep­utable real es­tate agent who will be able to guide them in the right di­rec­tion,” he says.

— Prop­erty24

Over­pric­ing a home will make it less at­trac­tive to buy­ers.

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