Real estate is all about buying and selling, but there are some myths that stop people from managing it in the right way. Whether buying a family home in North America or a holiday home on the other side of the world, there are still people who believe they don’t need an agent until the time comes to sell.
As you will discover in this article, this and many myths like them are prevalent and they get in the way of closing a sale.
1. You Should Contact an Agent Only When You Sell
An agent is so much more than the person who can sell your home. They are there to help you throughout the whole process. The right time to contact an agent is the moment you consider selling your home. They can recommend changes that can enable you to better close your sale, and crucially get more money from your property.
You don’t have to commit to a sale just because you hired an agent. You can pull out of the sale at any point.
2. Charge a High Price for Better Negotiation
It’s a tempting idea, but an entirely wrong one. Look at it from the buyer’s point of view as they browse through a catalogue of properties. If they see an overpriced property, the chances are they are going to just move on. You will never get to the negotiating table to begin with.
Make sure that you charge a slightly higher price, as all sellers do, but don’t try to charge an absurdly high price for the purposes of negotiation.
3. The Outside is Secondary to the Inside
Flip this around and you have the truth. The outside is the first impression. If you have a yard that hasn’t received any love in a long time, you are going to turn people away. Buyers are going to believe that the property is exactly the same on the inside.
So while interior design is critical, the outside is the first view people get and it’s often what they judge an entire property on.
4. Open Houses Will Help to Find a Buyer
Research states that there are very few markets where open houses are effective at finding a buyer. The problem is they just attract people who have nothing better to do on a Saturday afternoon. Real buyers prefer the privacy of a personal tour with the help of an agent.
Move away from the idea of hosting an open house.
5. The Best Time to Buy and Sell is Spring
Marriage used to be incredibly common, and so buying and selling was largely confined to the school schedule. Single people are buying property more often than before. The best time to buy and sell is in the holiday season because this is where people wrongly assume nobody is looking.
It brings in the buyers who are looking for a deal, while many sellers leave their homes on the market even during the slow months.
6. Low Offers are the Key to Negotiating Success
The days where houses were priced with negotiation in mind are long gone. Instead of opting for low offers, you should go right in with your main offer. From a buyer point of view, a low offer isn’t likely to be accepted because the value of the house is genuinely based on the listing price.
From the seller’s point of view, it’s a sign that the person isn’t serious about purchasing.
7. All Cash is More Attractive
All cash is sometimes seen as the favored option in real estate. But this comes with a lot of risk for the seller because they have to be sure that the person is going to actually come up with the money needed to make the purchase.
A traditionally financed offer is more attractive because the seller can guarantee that they are going to get the money. It may mean a longer wait time for the mortgage application, but at least they know the buyer isn’t going to back out at the last second.
There are many real estate myths that can scare both buyers and sellers. By keeping in mind these myths and knowing how to counter them, you can get a good deal with a minimum amount of hassle.
What are your top myths in real estate?