Most of us don’t buy or sell a home every day. Despite that most of us deal in the real estate realm once every 10 years or even once a lifetime, we all think we know how it works, based on the experiences of friends and family members, or articles we have read. The fact of the matter is that real estate is constantly changing, and buying into myths or outdated advice from friends can actually hurt your chances of buying or selling at the right price. Below are a few of the most common misconceptions.
Set your home price higher than what you expect to get. Buyers and their real estate agents often don’t even look at homes that are priced above market value. You can always lower the price if the house doesn’t receive any offers right away, but buyers are more suspicious of homes that have a higher days on market count than others. By listing in the incorrect price range, you also miss exposure to buyers who are searching online within a specific range. Choose a realtor who you see often selling homes in your neighborhood. They will have the expertise to get you the most money for you home in a short amount of time.
You can get a better deal as a buyer if you don’t use a real estate agent. A realtor’s commission is built into the contract with the seller of a home. As a buyer, your realtor is no cost to you.
You can save money selling your home yourself. It’s not impossible to sell a home on your own, but buyers will expect to buy it at a lower price, often equaling more than what you would have spent on a realtor’s commission. You should also think about the value placed on the time you spend getting the home exposed correctly on the internet, reaching prospective buyers, negotiating, and dealing with repairs that a realtor would be doing for you.
You’ll earn back what you spend on renovations. Major appliances such as a new heating and air conditioning system or a new roof will sell your house more quickly, but understand that you may not get back what you spent based on other factors of your home. Even a major kitchen or bath remodel could backfire. Buyers may not share your taste or want to start a project on an area that has just been redone. It is better to adjust your price to compensate for a space than to renovate it. Your real estate agent can give you a great idea on what updates will appeal to the demographic of buyers that will be looking at your home.
Adapted from http://money.usnews.com/money/personal-finance/articles/2015/08/04/9-common-real-estate-myths-that-plague-buyers-and-sellers