Whether you’re trying to sell your home or looking for a home to buy, there is a great deal of misinformation out there. It’s important to learn the truth, because believing in one of these myths could force you to commit a costly mistake.
Sell Your Home for More Than it’s Worth
This is a common myth and it could actually hurt the sale of your home. Some people believe that setting an asking price above the home’s market value can help you sell your home for the price you really want. While it’s true that buyers try to negotiate the final price, trying to sell for too much can chase away potential buyers.
Buyers Do Better Without an Agent
The idea behind this myth is that the real estate agent’s fee will be spared. This is a false assumption. Real estate agents working for the buyer and seller share a percentage of the sale. In a case where the buyer isn’t working with an agent, the seller’s agent gets the full share.
Sellers Don’t Need a Real Estate Agent
While technically true, trying to sell your home won’t save you much money. The buyer will expect a discount from a seller working without an agent, so the money you save on the agent’s commission will be lost to the buyer. Additionally, you’ll have to be able to do everything an agent can do from listing the property online to handling the closing.
Sellers Should Remodel Their Kitchen and Bath
This is frequently recommended, but it may actually be bad advice. Buyers may have their own plans for the kitchen and bath, so putting in the work ahead of time could negatively impact a sale. Especially if they don’t share your tastes, they may prefer to look for a home that hasn’t been updated recently.
Sellers Can Expect to Earn Back What They Spend on Renovations
While it will be noticed, if the roof is in bad shape or the air conditioning doesn’t work, fixing these big ticket items won’t help you raise the value of your home. Buyers may feel it’s your responsibility to repair these things before putting the home on the market, so they usually won’t be willing to pay more for an updated home. However, if you don’t fix these things, you may actually lose value in your home.
There are more myths flourishing in the real estate industry, so always check to be sure something is true. If you don’t do enough research, you may find that it cost you money instead of helping you save. Always direct questions to a qualified and experienced real estate agent to avoid making devastating mistakes.