Some Of The Worst Home-Selling Advice You Will Ever Hear
When it comes to taking advice on selling your home, it might just be better to take the less is more approach. Neighbors, friends, family even co-workers will all have an opinion – but should you listen?
Pricing a home should only be based on facts, not opinions or emotions. A qualified realtor will do the research to present you with accurate comparable sales that will help you determine what your home is worth. More than likely, your neighborhood realtor knows your market better than any of your advisors.
Don’t make such an important transaction without the help of a realtor. Think twice before you take any of the following advice:
Price your home based on what you paid, plus a little extra for profit
This may be a hard pill to swallow but truthfully, you don’t get to determine what your home is worth. The bottom line is your home is worth what buyers are willing to pay for it. Buyers today are very savvy, they know what the comps are – what similar-sized homes are selling for in your neighborhood, believe me – they have done their research. More importantly, it is hardly likely that your home will appraise so much higher than other homes that have sold recently in your neighborhood.
Add the cost of renovations you’ve made to your price
So you’ve done a ton of renovations and you love it? The reality is, potential buyers may not like the renovations you made and may not want to pay extra for them. A recent report done by Remodeling Magazine (2016 Cost vs Value Report) states that you’ll make an average of 64% profit on what you paid for renovations when you sell your home. Additionally, the return on your investment varies based on what you’ve done and how well it was done.
Don’t have to move? Price it high and see what happens
Statistics have proven time and time again, homes that are substantially overpriced, tend to sit on the market longer and ultimately sell for less than if it had been priced appropriately right from the start. Remember, today’s buyers are savvy and they know when a home is overpriced – they will wait it out until they can bring you that low-ball offer.
Price your home high, because buyers will come in with a low offer
This could not be further from the truth! When you price your home too high, you exclude the most amount potential buyers for your home. Buyers usually search in a price range – if yours misses the price range by a few thousand dollars then you are missing out on a lot of potential buyers for your home. Eventually, you will need to reduce the price to attract new buyers and this could lead to making you look like the desperate seller.
When a home is priced right, your chances of getting a full-price offer increases significantly. Do it right the first time around.
You got a low-ball offer? Don’t bother negotiating
What do you have to lose by countering the offer? There are just some buyers who are not happy unless they make you a low-ball offer – it’s just the way they think. It doesn’t mean your realtor cannot get that buyer to see the value in your home and get them to come up on their price. I’ve seen it happen numerous times on my listings.
The bottom line is: when selling your home, while well-meaning friends and family think they are helping, they can actually be hurting your sale. Hire a realtor who will present you with the facts.