Selling your home is a big life decision, and home sellers should arm themselves with the right information so that they can make the best choices to maximise your returns. However there are many popular misconceptions out there that can hamper a seller’s success and lead to errors in judgement that cost both valuable time and money.
Here are the top 5 most common myths we hear from our clients and what you should know about them:
It would be better for you not to expose their property to the market yet in this case. Genuine buyers who are actively house hunting have done enough price comparisons to have a gauge of the market price range, home sellers will miss out on this group of buyers by starting too high. Overpricing may also push potential buyers to other units on sale as it will make theirs look far better value for money.
Adjusting prices downwards later will send the message to buyers that the longer they wait, the lower the price will be. Finding that sweet spot and pricing your property right is an art; it should not be too high that it turns off buyers and yet not too low that it would not do you justice.
You may be tempted to sell their home themselves and go down the For Sale by Owner (FSBO) route to avoid real estate commission fees. However you may be saving less money than you think or even run the risk of losing money. Without an agent, FSBO sellers would have to bear all the costs of marketing, staging, photography and videography themselves which can add up to quite a bit, especially if your unit ends up on the market for an extended period of time.
Without comparative market analysis and access to paid tools used by agents, you may end up pricing your home incorrectly and leave a significant amount of money on the table. Home sellers are also not in the market everyday to have a good feel of market sentiment, and lack the experience and specialised knowledge in negotiating a home sale. The buyer’s agent does, and this all gives them an upper hand in the negotiation.
In addition the buyer may expect a discount if the seller is not using an agent as the commission is usually factored into the sales price.
One of the biggest misconceptions we come across is that the best real estate agent is the one who has the most listings, but this is not always the case. Real estate agents who are overloaded with too many listings may not be able to focus on everything or give sellers enough personalised attention. You might end up being just another number to them instead of a client.
You should look for a dedicated real estate specialist who focuses on quality over quantity, who can tailor a marketing campaign based on your individual needs so that they can market your property to the right audience.
A common question we get is, why can’t I just engage a few dozen real estate agents to sell my home and the first one to get the best deal wins? More agents means more exposure – simple right? In reality using multiple agents will likely do more harm than good. Now the agents’ priority is being the fastest to close the deal, instead of getting you the highest price for your property.
Multiple advertisements from different agents could also confuse buyers if there are any discrepancies in the description or price. You also run the risk of coming across as desperate to buyers when they see multiple listings for the same unit. In addition, engaging multiple agents may even ironically result in lower visibility for your listing since no agent wants to spend a fortune marketing your property only for someone else to close the deal.
It’s natural to want to maximise your earnings from your property sale, but just going with the cheapest agent may not be the best option for you. The savings from the commission fees may come at a cost elsewhere.
If the agent is so quick to lower their commission to get your business, they may be as quick to settle on a sales price during negotiations just to close the deal. The lower commission may also come at a cost of a reduced marketing budget which puts you at a disadvantage in the competitive marketplace.
When comparing agents, make sure to look beyond just what they charge in fees – a proven track record, experience and local market knowledge also counts for a lot. Regardless of the percentage, the professional fee is still zero if the agent cannot deliver any result.
Knowing the truth about these myths will help you avoid the most common mistakes made by home sellers and help you make the best decisions for you and your family.
If you would like expert guidance on selling your house, get in touch with us for a free personalised consultation. With 30 years of experience in the industry, we have a comprehensive understanding of the market and can help you come up with a marketing strategy that will give your property a competitive edge.