Real Estate Mythbusting: Fact or Fiction

There are many myths in the world of real estate. However, believing something is a fact rather than the myth it is could hurt you when you are trying to buy or sell. Below are some of the most common real estate myths along with myths that pertain to our area:

As a seller, I should price my home above market. Buyers will make a low offer and the goal is to meet in the middle which is ultimately how much I want to make on the sale of my home.

This is probably the most prevalent myth out there as pricing a home above market can make buyers avoid it like the plague. Usually homes that are priced above market languish and the seller ultimately has to bring down the price, perhaps multiple times. But by that time, buyers have begun suspecting there is something wrong with the house and it takes longer to sell.

As a buyer, I want to spend my investment dollars wisely, so I should come in with a really low offer.

This strategy may be the right move for the right property in the right market, but in most cases, all this does is offend the seller and make them less likely to negotiate. In a balanced market, coming in the market value range allows for some wiggle room and it makes the seller more likely to negotiate. Notice I said “market value” and not “list price”. If the property is overpriced then your goal as the buyer should be to get your offer, and ultimately the agreed-on sales price, in market range. Of course, if you are in a seller’s market with lots of buyer competition and few homes available, there is no question that you should be offering market value for the home and possibly more depending on your urgency level and budget.

It doesn’t matter if my house has furniture in it or not – if a buyer wants it he or she can imagine their own furniture in here.

Most people absorb information visually but have a challenge mentally placing their furniture – or any furniture – into a vacant room. Studies show that a home with furniture in it, staged to show room functionality, sell faster.

I watched a TV flip show and the people on there got XX amount of dollars from their fix/upgrade job on XX.

Please remember that every area is different and your return on investment for a fix or upgrade depends on the area (buyer demand/expectation, location, quality of finishes etc.)  Ask us if you want to do something to your house and are expecting a certain return on investment. We have resources that help us determine (beyond what we hear from buyers and the market) the return on investment.

This may be part one of a several part series as there seems to be so many myths out there when it comes to Real Estate:)