As with all myths, preconceived ideas are largely anecdotal and easily perpetuated, becoming entrenched through their retelling over time. And, although many are innocuous, others can significantly hamper a buyer’s or seller’s success and can easily lead to costly errors in judgement.
Below are the most common misconceptions along with their potential pitfalls:
Overpricing a home achieves a higher sale price
This is a myth that needs urgent debunking. Not only is it patently not correct, it can also seriously hamper a seller’s goal to sell quickly and for the highest price possible.
When potential buyers begin their search for a new home, it’s usually online where they will comparison shop and compare all the similar properties in their preferred areas. This means that they are likely to filter their search to select properties that are within their budget range.
And the homes that usually make it onto short lists are those which not only tick the most boxes but also offer the best value for money so if your home is over-priced, not only will it probably not make it into their search parameters, if it does it will quickly be discarded if similar homes are better priced.
Therefore, not only will it take longer to sell, buyers will notice that your property has been on the market for some time and will begin to wonder what’s wrong with it. Chances are, you’ll end up selling for less than you would have had you entered the market with a realistic price.
A quick offer proves that the property was priced too low
Despite the inconvenience and disruption of having one’s home on the market, it’s not uncommon for sellers to be disappointed if they receive an offer very soon after listing and to question the accuracy of the agent’s valuation.
And whilst this scenario is certainly not impossible, it will only ever happen when a property isn’t valued by an experienced professional because, the reality is that a realistically and competitively priced home in most areas will always attract buyers - even in the toughest of markets.
Most buyers begin their search online and, after extensive comparison shopping, serious buyers will have seen everything that’s available in the area and will have a good idea of pricing, so when they see a new listing that ticks their boxes and is priced right, they’ll immediately request a viewing.
An open house is essential for a sale
Long gone are the days when the only way to market a property was by placing an advert in the weekend newspapers and hosting a Sunday show house.
The advent of digital technology has enabled us to advertise far more extensively and in more detail to a far wider audience than ever before. And, if the pandemic taught us anything, it’s that business can be conducted and property can be sold through the use of technology alone.
That said, having to regularly re-organise your busy daily schedule so that strangers can traipse through your home for individual viewings can become very tedious and an open house is still an efficient way in which to enable multiple potential buyers to view a property with minimum inconvenience to the sellers.
Agents will say and do anything to close the deal
It’s certainly true that the most successful agents are those with a gift of the gab and a talent for selling; those who are able to highlight the best features of a property and help prospective buyers visualise living there.
As with any industry, there will always be a few charlatans trying their luck, but they are very few and far between and don’t last very long, especially in reputable, established agencies.
Not only are agents held to a very strict code of conduct with a multitude of rules and regulations with which to comply, they also rely heavily on referral and word-of-mouth business as well as repeat business and those who are less than ethical and professional will soon fall by the wayside.
The agent offering the lowest commission is the obvious best choiceWhilst it’s understandable that many buyers want to negotiate the commission rate and most agents will oblige, the truth is that if an agent offers to significantly reduce their commission upfront, it should be regarded as a red flag.
It takes many long hours of work over several months to conclude the sale of a home and it requires a comprehensive marketing plan, reams of documentation to be meticulously completed and a thorough understanding of the financial and legal aspects of the transaction.
Furthermore, a good agent will guide you and strive protect your interests throughout the process and will negotiate on your behalf to achieve the best possible sale price. In other words, they really earn their commission and they know their worth and are therefore unlikely to slash 50% off the rate.
So, when an agent is quick to discount their commission by a significant amount or to use a low commission rate as their sales pitch, there is a good chance that in the long run, the buyer will lose more than he/she saves in commission.
You have to wonder where the agent will then make up the discount - will there also be a reduced marketing budget and how quickly he/she will settle on a sale price during negotiations just to close the deal?
Remember that from the agent’s commission, there are franchise fees, PA and referral commissions as well as marketing costs to cover which can leave very little at the end of the day.
Online valuations are just as reliable and thorough
The internet has revolutionised our lives and the convenience of instant access to information has transformed most industries, including the real estate sector.
But, although certain things, like the initial search for a property, can confidently be done online, the human element is still critical in other steps in the process, especially when it comes to property valuations and accurate pricing.
If you are thinking of selling and want an approximate estimate of the value of your property, then popping online is a quick and easy solution, but if you do decide to sell, an accurate, market-related valuation is critical.
And this is best achieved through an experienced agent with a solid track record of local sales and a thorough knowledge of the market in your area.
Home improvements pay for themselves
Whilst it’s certainly true that upgrades and improvements can significantly increase the value of a property, it’s not true of all improvements and there is a very real possibility of over-capitalising.
It’s therefore important to do your homework by establishing the current value of your home as well as property prices in your area. Neighbourhoods generally have a ceiling value which is the threshold up to which buyers and renters are willing to pay.
It’s also a good idea to find out what trends and home features are most popular and also which are least desirable.
A home will sell itself, it doesn’t need to be prepped for sale
This is another myth because even a brand-new build that has never been lived in will attract more interest if staged with furniture.
And no matter how beautiful a home may be; it still needs to be tidied and cleared of clutter and personal effects so that prospective buyers can more easily imagine themselves living there.
If your home is older, whilst it’s not necessary to break the bank with major upgrades, but there are few properties that wouldn’t benefit from a fresh coat of paint, a tidy garden and a vase of fragrant flowers to welcome prospective buyers.
The decision to buy a home is not only a financial one; it’s strongly influenced by emotion and it’s therefore essential to engage buyers emotionally by highlighting your home’s best features and making it as appealing as possible.
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