Real Estate Myths: Mistakes To Avoid When Selling Your Home
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by Richard Morrison
- January 23, 2020
- Selling
- 0
Selling a home is one of the biggest financial transactions most people will ever make. With so much at stake, it’s no wonder that myths and misconceptions abound about the best practices for getting top dollar on a sale.
As a real estate agent with over 10 years of experience, I’ve seen these false beliefs trip up sellers time and time again. In this article, I’ll debunk some of the most common real estate myths to help you make smart, informed decisions when selling your home.
Key Takeaways:
- Pricing too high can actually cost you money in the long run, as buyers may see overpriced homes as problematic.
- Holding out for multiple offers or bidding wars rarely pans out. It’s best to thoughtfully consider each offer that comes your way.
- Seasonality impacts the market, but homes can sell any time of year with the right prep and pricing.
- An experienced agent who invests in marketing will likely net you more, even after commission, than going the FSBO route.
Myth 1: Pricing High Will Result in a Higher Sale Price
It’s tempting to tack an extra $20,000 or $30,000 onto your asking price. After all, buyers will negotiate down anyway, right? Wrong.
Pricing too far above comparable homes can actually cost you money in the long run. Here’s why:
- Buyers will pass over your home for more reasonably priced options. Even if they can afford an overpriced home, it signals to them that you are out of touch with the market.
- An overpriced home may sit on the market longer. The longer a home lingers, the more buyers wonder, “What’s wrong with it?”
- Stale listings attract lowball offers. Savvy buyers see an overpriced home as a chance to bargain.
- Any buyer who does pay your inflated price risks not getting financing. Lenders require appraisals to ensure homes aren’t overvalued.
As a realtor, I always advise my clients to price within 5% of comparables. This attracts qualified buyers while leaving some room for negotiation.
Overpricing by more than 5-10% almost always costs more in time and lost offers than it gains in the ultimate sale price. Don’t let greed cloud your judgment.
Myth 2: Holding Out Will Get You Multiple Offers
When homes are in short supply, holding out for a bidding war might seem smart. But this gamble rarely pays off. Why?
- Buyers have options. Even in competitive markets, most will keep looking rather than get caught up in frenetic bidding.
- Financing can be a factor. Not all buyers are able to modify their offers quickly to compete with cash buyers.
- Time is money. The longer your home sits, the more you pay in mortgage, taxes, utilities and upkeep. These costs usually outweigh any gains from inflated offers.
Unless you’re in an extreme seller’s market, give each offer serious consideration. Don’t let greed make your decision.
Myth 3: You Can’t Sell in the Fall or Winter And Get Good Price
Conventional wisdom says homes sell fastest in spring and summer. But seasonality impacts different markets in different ways.
If you need to sell quickly, timing matters less than preparation. Even off-season homes can attract buyers with the right approach:
- Invest in professional photography to showcase your home at its best.
- Consider holding open houses to capitalize on holiday foot traffic.
- Highlight off-season perks, like holiday décor potential or cozy fireplace allure.
- Remind buyers of tax advantages if they close by end of year.
- Provide incentives like credits for repairs or appliances to sweeten deals.
With the right agent and strategy, your property can shine whatever the season. Don’t let the calendar stop you from pursuing a move.
Myth 4: Over-Improving Will Boost Your Sale Price When You Sell A Home
It’s natural to want your home to dazzle buyers with upgrades like granite counters, new floors or a master bath makeover. But major renovations don’t always translate to major returns.
High Return Improvements
- Kitchen and bath updates
- Landscaping and curb appeal
- Fresh interior paint
- Professionally cleaned carpets
- Necessary repairs and deferred maintenance
Lower Return Improvements
- Luxury swimming pools
- Custom built-ins
- High-end media rooms
- Rare backsplashes or designer fixtures
- Dramatic color schemes
As a general rule, cap pre-sale improvements at 2-3% of your home’s value. Beyond that, you likely won’t recoup the cost. Focus on décor-neutral upgrades that make your home competitive, not overly customized.
Myth 5: Hiring a Realtor Isn’t Worth the Commission
FSBO – or For Sale By Owner – seems appealing. But sellers who go the FSBO route net thousands less on average than those who use an agent. Why the discrepancy?
Experienced agents bring expertise and exposure that you simply can’t replicate alone:
- We develop pricing strategies based on nitty-gritty comps analysis – not just guesstimates.
- Our marketing reaches more targeted buyers through MLS, digital ads, events and past clients.
- We know how to negotiate expertly – and legally – to close deals.
- We act as buffers, so you don’t have to field calls and showings alone.
- We guide you through inspection, appraisal, financing and closing processes.
Our commission is earned by getting you more money in the end. FSBOs require time and effort too – with lower returns.
As your agent, I can get your home seen by 100 times more buyers than you can alone. That exposure nets sellers tens of thousands over DIY attempts, even after commission.
Myth 6: With An Open House The House Will Sell Quicker
Myths when selling a house can often be avoided with the help of a real estate agent. The best way to get your home on the market is to hire a top real estate agent who knows what they are doing when it comes to selling a house. Listing your home at a competitive price in the current real estate market is key to helping it sell quickly.
Homeowners should also make sure their home is ready before selling and staging their home like a good idea, as buyers won’t be impressed if they find out the home hasn’t sold and need to hire someone else to help them sell the house.
Myth 7: If the First Buyer’s Offer is Good, I Should Increase My Asking Price
It is a common myth that if the first buyer’s offer is good, you should increase your asking price when selling. This is a completely false myth that can be detrimental to you when selling a house. To avoid this, it is best to use a real estate agent to set the price for your home.
Many homeowners will list their home without an agent before they even start selling or buying. Before listing your home, make sure you get it ready and research the current market to determine the right time to sell and the possible price range of your home.
It is often compared to a bottle of wine that gets better with age; however, when it comes to real estate, getting suspicious and wondering why multiple agents are trying to get you to list may be wise. Instead, hire a great agent who will give you an estimate on what it’s actually worth and not just what the first offer says – since pricing a house is much more complicated than that.
FAQs:
Q: What are the most common real estate home selling myths?
A: Common real estate home selling myths include believing that a house will sell without an agent, that hiring an agent is too expensive, or that setting the asking price too high will save you money. Other myths include believing that open houses are necessary to sell a home, and that sellers don’t need to do anything special to get a good price for their home.
Q: How can I make sure my house is ready for sale?
A: To make sure your house is ready for sale, you should hire a professional real estate agent who can help you stage and market your home. You should also have a home inspection done if it has not been done recently to identify any potential issues buyers may be concerned about. Additionally, it is important to price your house properly and list it in the right price range to attract potential buyers.
Q: What are some of the most common myths about selling a house?
A: Some of the most common myths about selling a house include believing that open houses are necessary to sell a house, or that sellers don’t need to do anything special to get a good price for their home. Additionally, many sellers believe that setting the asking price too high will save them money or help them get the highest price for their property, however this is not true.
Q: Are there any myths about selling your home without an agent?
A: One of the most popular myths about selling your home without using an agent is believing that doing so will save you money. While there may be some scenarios where this could be true, in general it’s best practice to hire an experienced real estate professional who can help you navigate through all aspects of the process including marketing and negotiating with potential buyers.
Q: Should I set a higher or lower asking price when listing my house?
A: When setting an asking price for listing your property for sale it’s important not get too caught up in trying to find the perfect number. Instead focus on researching current market trends and getting advice from experienced professionals such as Realtors or appraisers who specialize in understanding local markets and pricing homes accurately.
Q: Is there anything I should do before putting my house on the market?
A: Before putting your house on the market it’s important to take some steps such as making any necessary repairs identified during inspections as well as staging and cleaning up both inside and outside of your property so its more attractive for potential buyers. Additionally having top quality photos taken of both interiors and exterior areas can go a long way towards helping you get more interest from prospective purchasers.
Q: Are there any myths about pricing my house correctly?
A: One myth about pricing correctly is assuming that setting an asking price too high will lead automatically lead homeowners into getting offers above what they would have been offered otherwise; this isn’t always accurate since even if prices are set higher than fair market value potential buyers may simply choose not make offers at all due lack of perceived value.
Q: What are some tips for getting maximum value when trying to sell my home ?
A: Some tips for getting maximum value when trying to sell include making sure all repairs have been completed prior listing , ensuring proper staging, taking advantage of online marketing tools such as virtual tours or videos , hosting multiple open houses ( if allowed ), exploring various financing options , being flexible with showings etc.
Conclusion
When it comes to home selling myths, there are many that can lead sellers astray. For example, some believe that they can sell their house without hiring a professional real estate agent or that the value of their home is higher than it actually is. This is simply not true and can be detrimental when trying to sell your house. Home buyers also need to consider getting a home inspection prior to selling as this will help set realistic expectations for potential buyers and ensure the transaction is successful.
Additionally, many sellers believe they will get the highest price for their home if they put it in a certain price range but this isn’t necessarily true either; sometimes setting a lower price may attract more buyers and help you sell your home faster. Therefore, it’s important not to believe any myths when it comes to selling homes as these misconceptions could prevent you from getting the best deal possible.
Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.
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