The Less Commission You Pay, the More Money You Will Make
False. But if you would like to put your house up for sale yourself, please do! And agents hope that you are successful because it is really hard to work with a client who doesn’t think you deserve to get paid. The simple truth about selling a house is that it is not as easy as putting up a For Sale sign and listing it in the MLS. Agents with a marketing budget are able to blast your home everywhere to reach a larger pool of buyers, which means more people that could potentially buy YOUR house.
In some cases, you actually LOSE money by using a discounted listing service or selling on your own. A lack of marketing could mean your house is on the market for a longer time, increasing costs of just maintaining the property. Even worse, you may have to REDUCE your price because nobody is interested! Yikes!
Price Your Home High to Have Room for Negotiations
To avoid getting less than you want, you should aim high right? Nope! Pricing your home correctly the first time can save you thousands of dollars. The idea is to be relevant in your current market so that buyers will see the value and want to pay what you’re asking for. If you price too high, buyers will know because they have agents looking out for their best interests! An overpriced home can drive away potential buyers. Some may not even want to take a look if they think your price is overly outrageous. It makes you look unrealistic, demanding, etc. By the time you reduce the property, you could find yourself chasing the market down. A property that sits on the market too long sends a red flag that something is wrong, and then you’re just welcoming in lower offers. Price it right the first time, sell, and move on!
You Should Start With a Low Offer for Negotiations
In some cases, starting lower may be a good strategy. But this should be done with the understanding that you could miss out on that house. If the offer is too low, the seller might be offended and reject it right away. If there are other offers on the table, they may reject yours in favor of a higher offer. Your agent should be knowledgeable about the market and advise you when there is a multiple offer situation, in which case a low offer may not be a great idea. A seller wants the most money possible. A buyer wants the best deal possible. Generally, these interests should meet in the middle at fair market value.
You Will Earn Back What You Spend on Renovations
Often, the reason why you want a lot of money for your property is because you put a lot into it. Money, blood, sweat, tears, and memories. You have the best house on the block! And it’s wonderful that you think so, but most other sellers are thinking the same thing about their house. So who’s is the best? It is up to the buyer to decide. With that in mind, don’t spend too much on renovations unless they are for your own enjoyment. You can expect to see, maybe, up to 70% return in those renovations, but not much more. If you over-improve, you may see a lot less of a return. Be aware of your neighborhood market and adjust your renovation plans accordingly.
Why Does a Real Estate Agent Care, They Have a Glamorous Life & a Lamborghini!
False. I mean maybe some agents do, but we certainly don’t! According to the Bureau of Labor Statistics, agents make an average of $47,880 a year. Better than average, but still does not support those Lambo dreams. Agents may score an awesome commission check every now and then, but remember that most agents only score those checks maybe 3 times a year. And that’s considered successful in our world! Most agents make enough money for a modest living, and some have to find another job for additional support. Please remember that when you are negotiating an agent’s commission, that is often the compensation for months of hard work.
Agents Can Only Show Their Own Company’s Listings
False. Agents can show any listings as long as the showing is approved by the list agent / seller. It is illegal (and unethical) for list agents to post a property for sale and only show it to their own company. If a property is listed on the MLS, it must be available for showings to all licensed real estate agents in the MLS. Although our coworkers appreciate it when we show their listings, we do not limit our buyers to just a piece of the market. We want you to find your dream home, regardless of who listed it!
Zestimates are Accurate
Ah, Zillow. Yes, there are brief moments in time where Zillow can be pretty close to actual market value of your home. And other times it is either really high (to your delight) or dangerously low, causing dismay. Zillow is always a step behind, using data that isn’t quite up to date. Zillow also cannot account for various upgrades and nuances involved in pricing a property. If you live in a cookie-cutter neighborhood, Zillow is a great place to look to get an idea of what your home is worth. If you have an incredibly unique house in a diverse neighborhood, Zillow is going to have a harder time giving you a reference point.
You Can Buy a New House to Avoid Future Repairs
Yes, there are perks to buying a new house and there are less repairs (hopefully) needed in the near future. HOWEVER, do not let the shiny new home distract you from doing your homework! Hire an inspector that has experience with new builds, who will check the quality of the build and point out any flaws. A lot of new developments go up quickly with cheaper material to maintain revenue. Don’t be a victim of a poorly grouted shower or flimsy wall. Demand excellence!
A Sign Does Not Sell a House
The only thing that’s preventing a sale is that lawn! We always shudder when we hear this one. A sign on your property is so vital. It allows the neighbors and people walking by to stop and think about their family who is trying to move closer! Or perhaps someone is driving by and sees a gorgeous house and OMG, it’s for sale! Don’t like your neighbors? Great! Get that sign out there and sell it faster so you can move away! This is the BEST time and one of the only times that having a nosy neighbor is such a blessing. They will get the word out for you! Talk about easy marketing. Yes, a sign has our phone number on it. But it is advertising YOUR house, and do you really want just anyone off the street calling you about it? We filter through the prospects to find serious buyers for you. A sign is so, so vital. When there isn’t a sign, people are confused. Even if they see the property online, they have no indication that it is the right house except for the address. Not to mention scams. Make it easier (and safer) for buyers to find your home.
Eating Chocolate Gives You Acne
Okay, this isn’t a real estate myth, BUT real estate agents eat chocolate too! According to JAMA, a study was conducted that found no difference in faces between the group eating chocolate and the poor, poor group abstaining from chocolate. So binge away my friends!
