Real Estate Myths and Truths
By David Devoe
Seller’s Myth: List your home at a high price to leave room for negotiation.
Truth: Most homes in our market are selling above 97 percent of list price, and in most cases, over the list price. Properties that sell for substantially less than their listed price are a rarity in the area. Having the right agent help you price in the “sweet spot” and market it correctly will likely yield multiple offers, giving you more leverage and pushing the price to the highest point the market will bear.
Buyer’s Myth: Working with multiple agents will get you a better deal.
Truth: Working with multiple agents can dilute those agents’ focus on your goals. Does it make more sense to run around with a few agents who are looking for a one-off sale? It makes the most sense to work with a Buyer Specialist, who will commit fully to understanding your needs and helping you achieve your goals through patience and focus.
Seller’s Myth: Paying a lower commission will net you more money.
Truth: If you were going in for surgery, would you try to hire the cheapest surgeon? On a five percent listing, half of that goes to the listing agent. Typically, 1/3 of that goes toward marketing, 1/3 may go to the agent’s brokerage, and 1/3 is left for the agent to pay expenses and feed their family. If you are hiring agents who are discounting their commission, not only are they less motivated, but the first place they are going to reduce their cost is in the marketing expense of your home. In most cases, reducing marketing costs yields a lower price, and ends up netting sellers less money.
Buyer’s Myth: Putting 20 percent down is not necessary.
Truth: Having a 20 percent down payment has many advantages: a better interest rate, less PMI (Mortgage Insurance), and most importantly, having a larger down payment will make your offer much stronger in the eyes of the seller in a competitive market.
Seller’s Myth: Your home is updated and in a good location, so you don’t need to stage.
Truth: Even the most beautiful, high-end homes should be staged and photographed by a professional photographer. With the internet being the first source for home shopping, the quality of your photos makes a huge first impression and can determine whether a buyer looks into, or just skips over your listing. Home stagers are in the market daily, and can likely help you see things that can be improved that you may have overlooked. They can help create the perfect canvas for a buyer to imagine themselves living in the home.