Home Selling Myths Debunked

One of the things most homeowners hope to achieve when selling their homes is profit. Setting the asking price for your home will never be a walk in the park, but with accurate information and a solid understanding of how the market works, doing so will be easier. 

The best way to figure out a good asking price for your home is to stop believing some of the myths out there. Here are some of the more common ones debunked. 

Myth #1 – My House Sold Quickly Because the Asking Price was Too Low

Many sellers think they set the asking price too low if their house sells quickly. The opposite is likely true, however. If you receive an offer(s) in the first couple of days after listing your house for sale, it’s because it’s competitively priced for that market, which attracted buyers right away. 

Myth #2 – Waiting for a Better Offer Makes Sense

If you receive offers in the first few days, you may be tempted to wait for a better one to come along. While this makes sense theoretically, the reality is that offers tend to dwindle and get lower the longer a house sits on the market. 

This is because buyers begin to think something is wrong with the property or that it was priced too high to begin with. Accepting an offer early on is likely to garner the biggest profit. 

Myth #3 – Online Home Value Estimators are Accurate

Using an online home estimator gives you an idea of what your home is worth. It doesn’t take into account, however, any special features your home may have or its actual condition. For the most accurate home value estimation, always listen to your realtor. 

Myth #4 – Overpricing Leaves Room for Negotiations

Another theory sellers fall victim to is that by setting a higher asking price, it’ll leave room for negotiating. What will happen, however, is that your home will sit on the market longer because buyers and their agents know when a home is overpriced. 

The best thing to do is trust your real estate agent who knows what your home is worth and what to ask to get what you want out of the deal. 

Myth #5 – We Can Recoup What We Put into Renovations When We Sell

While some renovations see a bigger return on investment (ROI) than others, the reality is none of the upgrades you make will see a 100-percent return. For example, a major bathroom remodel is likely to garner only a 56-percent ROI while replacing an entryway or garage door is likely to see bigger returns. 

Myth #6 – My Realtor May Up the Price to get a Bigger Commission

Most real estate agents have to split their commission with their brokerage and the buyer’s agent. It doesn’t make sense to risk that commission for the sake of a couple of hundred dollars. When a realtor sets an asking price, it’s based on expert market knowledge, so trust your agent to set it accurately and competitively – not selfishly. 

Profit is a priority when selling a home. To see the biggest profit when you sell yours, stop believing the home pricing myths listed above.