Four home-selling myths debunked
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.
Overpricing a home will make it less attractive to buyers.