Selling Your Home Today – Myths Debunked
Selling real estate today sparks misconceptions about getting top dollar in shifting market conditions. But many home sale myths lack the full story.
The rapid shifts in the real estate and housing market have led to several misconceptions around selling and getting top dollar in the shifting current market conditions. But many persistent myths about getting top dollar don’t tell the full story.
Even amid higher mortgage rates and inventory, selling your property smoothly and profitably is very achievable with the right guidance. With expertise, you can debunk assumptions and sell smoothly.
Here are common myths about selling a house to help you set the record straight:
Myth: Selling without an agent will save you money in commissions.
It’s true that selling by owner (FSBO) avoids paying an agent’s commission. However, statistics show FSBO homes often sell for substantially less than with an experienced agent.
In most cases, the thousands extra earned by hiring a qualified agent who will expose your listing to more buyers will more than make up for the commission cost. Their skills can maximize your sale price.
Agents also help navigate challenges that pop up, preventing costly legal issues or delays. Attempting to DIY the complex selling process to save on commissions often ends up sacrificing the home’s value instead.
Myth: Pricing your home high leaves room for offers and to negotiate.
While it’s tempting to overprice to attract high offers, this approach often backfires. Statistics show overpriced homes ultimately sell for less than appropriately priced listings.
An inflated price discourages serious buyers who don’t want to haggle from viewing your home. You miss out on potential offers while accruing days on market.
Your agent can use comparative market analyses to set the optimal price that maximizes visibility and incentivizes serious offers. Allowing room to negotiate is wise, but overpricing typically yields lower net sale prices.
Myth: The first offer is never the best offer.
It’s often advised to reject the first offer and wait for a higher bid. But that’s not always the best strategy. In many cases, the first serious offer represents the peak buyer interest and price level.
Especially in cooling markets, that initial enthusiastic offer may be the strongest you receive. The risk in declining is that interest steadily fades as days on market accumulate.
Rather than blanket rejecting the first offer, have your agent assess current demand levels and projection for more buyers. If demand is low, accepting a fair initial offer can maximize your sale price. Your agent can advise you based on activity during showings and open houses. If demand is strong, wait for more offers to come in before moving forward. The first bid may not be the highest bid.
Blanket holding out for the highest hypothetical offer that hasn’t materialized can backfire when market dynamics cool. Weigh all factors with your agent when deciding on that important first bid.
Myth: My amazing house will sell itself.
It’s true a home in great condition holds appeal. But assuming it will sell itself is often wishful thinking. Even amazing homes require proper pricing, staging and marketing.
Without enticing listing photos, compelling descriptions or targeted digital ads, potential buyers never find your “hidden gem.” Burying your head in the sand loses sales.
Curb appeal and interior fixes maximize desirability. Skillful agents market aggressively to hungry buyers. No home sells itself – savvy preparation and promotion seals the deal. Don’t leave your equity on the table by underestimating necessary effort.
Myth: You Must Complete Big Renovations to Sell
While updates can add value, major overhauls aren’t always required. Cosmetic improvements like paint, fixtures and flooring often go far enough. Decluttering and staging also prepare your home for maximum appeal.
Smart renovations provide returns, but extensive projects can be overkill. Consult your agent on the highest value fixes for your budget. Avoid assuming you must fully remodel to sell.
Myth: Online estimates like Zillow Zestimates offer accurate valuations.
While Zillow and other sites provide ballpark figures, their computer-generated home valuations lack local insight. Specific property features like renovations and exterior condition also impact values.
National algorithm-based estimates fail to account for nuances that affect value. Valuations can be off by tens of thousands.
For pricing guidance you can trust, consult an experienced local real estate agent. Their comparative market analysis incorporates on-the-ground insight on demand, inventory and sales data not captured by national valuation models. Don’t leave thousands on the table by relying solely on imprecise online estimates.
Myth: Using a dual agent to represent me and the buyer will save on commissions.
Dual agency seems like an easy way to avoid double commissions. However, it also introduces risks of conflict of interest. The agent must balance both parties’ interests in negotiations.
Statistics show dual agents often pressure sellers to decrease prices to close deals faster. There are also legal concerns around disclosure and fiduciary duty.
While permitted in some states, dual agency limits your representation and leverage compared to having a dedicated buyer’s agent negotiate. Potential savings of a percentage point or two on commissions rarely outweigh downsides. Don’t jeopardize thousands over fractions you can recoup through sales price.
Myth : It’s a Terrible Time to Sell With Inventory Rising
It’s true that more listings give buyers expanded choice. But inventory is still low historically, with supply under 6 months in many areas. This remains a sellers’ market.
More options mainly translate to less intense bidding wars, not lower sale prices. Homes still sell quickly when priced right. An experienced agent can price and market your home effectively, even with added inventory.
Myth: Timing listings around seasons is key.
It’s true some seasons see higher buyer activity. But today’s market allows less flexibility around timing. Low inventory makes most periods favorable for sellers who price accurately.
Obsessing over listing during a specific month can mean missing serious offers. Today’s buyers search year-round, especially with remote work flexibility.
Your agent can advise you on ideal timing based on hyperlocal demand, inventory trends, and upcoming developments. But remaining on the sidelines for months waiting for a seasonal window risks lost opportunities. With proper prep and pricing, you can generate interest now, whatever the season.
Myth: Companies guaranteeing purchases reduce risk.
Businesses promising to buy your home directly seem to reduce risk. But the safety net comes at a steep price.
Guaranteed buyers typically appraise your home below market value, then make lowball offers based on that estimate. You trade away thousands for the security of their purchase guarantee.
An experienced agent mitigates most sales risks for only a standard commission. With proper prep and pricing, you can maximize your home’s value without sacrificing equity for a “guarantee.” Don’t pay extra for unnecessary security nets. Trust the process.
The Truth About Selling Now in Today’s Market
Today’s market still offers ample advantages for savvy sellers. Inventory constraints, quick sales and strong prices reward those who properly prepare and price, and current conditions still enable savvy sellers to maximize sales prices. When armed with experienced representation and realistic expectations, you can debunk myths and make the most of selling in today’s market.
