6 Misconceptions About Selling Property That You Should Know About
There are several misconceptions that you might fall trap to when it comes to selling property. If you're planning to put your house in the market, make sure that you don’t make the following mistakes.
Misconception #1: Organizing multiple open houses will surely bring in more buyers.
Having open houses can be laborious for you as a seller; all that prepping, moving furniture, and showing strangers around can be overwhelming and time-consuming. But that's no reason to skip it altogether! It has been proven time and again that conducting several open houses could really draw in serious buyers. However, sellers must be wary of some “interested buyers” who go just to open houses as voyeurs: wanting to know how people live, and getting ideas for home decor. The best way to do this is to have a strategy so that your time, energy, and resources don’t go to waste.
Open houses are usually held during weekends, but you can make time for it during the weekdays, as most serious markets are inclined to peak during the week. Also, have your agent make good use of technology to put up your open house dates in apps and websites where homebuyers are set to look for listings.
Misconception #2: Home inspection on your end is a waste of time.
Buyers will most likely subject the house to a home inspection once they're serious about buying it. But just because buyers are set to do this doesn’t mean you can skip this for yourself. Having your house inspected by a professional before putting it up for listing will help you address issues in the house you might have missed. Also, presenting the home inspection report to prospective buyers will make room for transparency in the transaction -- which is always a good thing.
Misconception #3: It is best to decline an offer given right after putting your house on the market.
Sellers normally get overwhelmed after getting a first offer on their home, which then leads to the decision to decline and wait for better offers to come in. However, this is not always the optimal choice in real estate selling, especially in slow markets where it could take weeks or even months to get another offer. If the first offer you get is reasonable and is not below your listing price, then it would be wise for you to consider it.
Misconception #4: Overpricing the home will drive up its value.
As a seller, you want to safeguard your asking price, so it may seem logical to mark it up to make room for negotiations should the prospective buyer ask for a price reduction. Keep in mind that your goal as a seller is to not keep the house in the market for too long, and having it unreasonably priced may do just that. Buyers could be intimidated and may not look at the house in the first place. Be realistic in how you price your home -- consider the home's location, the surrounding properties, and current market conditions.
Misconception #5: It is good to let the house sit in the market for a long period of time to give way for better offers.
There are several factors that keep a property in the market for too long such as poor location or shoddy housing condition. But one common factor is related to the above number: property is not competitively priced, and the seller may be too unrealistic with the asking price that they're unwilling to level it with market conditions. Remember that having your home sit in the market too long can depreciate it. The longer you persist in selling an overpriced home, the more you’ll encounter buyers with lowball offers.
Misconception #6: Lavish home improvements will increase the value of your home.
While a home improvement can increase your home's appeal to buyers, keep in mind that doing it does not assure a complete return on investment as you may only recoup a percentage of your expenses. Keep the home improvements practical and minimal; improving your lighting and mowing your lawn can already make a difference without to spend too much.