Property misconceptions debunked
WHEN it comes to selling a home therere is no shortage of advice from a number of sources, such as family and friends. However, r, being given a lot of information doesn’t necessarilyessarily mean that it is the right information.
According to Adrian Goslett, Regionalonal Director and CEO of RE/MAX of Southernhern Africa, receiving advice and informationn from so many different sources can lead to uncertainty about certain key aspects off the property sales transaction.
He says in today’s age of technology there is a vast amount of informationn at a consumer’s fingertips, but havingng access to information and determining what can be trusted are two very different thingshings entirely.
“It is not always easy to determinee what information and advice should be heldd onto and what to ignore. As a result therere are several misconceptions that have made their way into the marketplace,” saysys Goslett.he provides a few truths and facts s to debunk the misconceptions and steer sellersellers in the right direction:
1.Misconception: Sellers determinene the home’s selling price
While sellers will have a say in settingting the home’s asking price, the selling price e of the property is largely based on the marketket and what buyers are prepared to pay,” saysys Goslett.
It is important that the asking price e of the home is what is considered to be a fairair market value based on key elements suchh as the home’s size, condition, location, the currentt property market conditions and the selling prices of comparable homes in the area.
“It is ultimately the seller who will have the final say as to what the home is listed for, however it is important to note that the initial asking price and the actual selling price of the property could be vastly different,” says Goslett.
2.Misconception: Pricing the home above market value will leave negotia- tion room
Overpricing a home does two things: it chases potential buyers away and makes other homes in the area look like a bargain, says Goselett.
A seller may feel that they are giving themselves some cushioning during the negotiating process, but in actual fact, overpricing has the opposite effect because it turns buyers away and the deal never gets to the negotia- tion stage. If buyers have done their homework and researched home prices in the area, they will recognise an overinflated asking price and will likely bypass taking a second look at the property.
A Accordingdi to GoslettG l thereh might ihbbbe buyers who can afford to purchase the property for its fair market value, but overlook the property if it is listed for too much.
There is also the matter of buyers who can afford the inflated price, but soon realise that home may not compare to others in a similar price bracket.
Overpricing will lead to the alienation of buyer pools, which can result in the property sitting on the market for longer than it should, and ultimately selling for less than it should,should he says.
3.Misconception:3.Misc There is no need to spend money on the property before selling
There is a market for buyers who are looking for a h home they can fix up or renovate themselves selves, however Goslett says most buyers want a home that they can simply just move into.
“The “There is no need to completely update the home, but it will be easier to sell a property that is aesthetically pleasing and well maintained tained. This could be merely a matter of a coat of pain paint and a few minor repairs,” he says.
“It w would be ideal to have any major repairs done b before the home is placed on the market, but th the extent of what is done to the home will depen depend on the buyer’s financial position and timef timeframe. If any defaults are found during an inspection, the seller can then discuss op options with the buyer regarding addit tional repairs or dropping their asking price,” says Goslett.
4.Misconception:4 Renovations and homehom improvements pay for themselves when you sell
AlthoughAlthou certain renovations and home improvementsprovem will add value to the property, very f few renovation projects will provide a completecomple payback on the money invested.
GoslettGos says before embarking on any project, it is important to get expert opinions on what should be fixed or changed and what kindki d of return can be expected as a result.
“Debunking misconceptions and knowing the truth about selling will help homeowners to get the most out of their property transaction,” says Goslett.
“It is always best to take advice from a trusted source that can provide accurate and helpful information. If ever in doubt, sellers should seek out the counsel of a reputable real estate professional who will be able to guide them in the right direction.”
While sellers will have a say in setting the home’s asking price, the selling price of the property is largely based on the market and what buyers are prepared to pay.