Archive for the 'Real Estate Tips' Category

1 Sep
Top 5 Seller Real Estate Myths
Posted On : 09 1st, 2009   By : Alice  |  Real Estate Tips

As a top listing agent in my office, I typically have the opportunity to meet with 5-12 prospective sellers a month.  When meeting with these sellers, I am often asked a series of questions regarding local market conditions, current home values, and also my marketing strategies.

During our conversation, many sellers will also discuss with me their beliefs regarding the current real estate market and ask me to shed some light on information they may have heard on the news or from friends and/or family.  Unfortunately, some of the information sellers believe to be true, are in fact myths.  Here are the top 5 seller real estate myths and the real truths.

Myth #1: The fall and winter market is the worst time to sell.  I’m going to take my home off of the market and/or wait until the spring season to list my house.
This is not necessarily true.  Especially in the Naperville area, the fall/winter market is sometimes the best time to sell.  A large number of relocation transferees come to Naperville to look for a home between the months of September to December.  Additionally, since they are relocation buyers, they are serious about finding a home and they have a specific timeline.  Additionally, your home may not receive as many showings during the fall/winter market, but the showings you will receive will be more serious.  There will also be a lot less competition compared to the spring and summer months.  Lastly, the fall/winter season is usually when your home looks the best, with holiday and seasonal decorations.

Myth #2: I can always reduce my listing price later.
Some sellers price their home high for the first 3-4 weeks to “test” the market.  However, this is not a good idea.  Buyers will know if a home is overpriced, because they are viewing all of the competition that is also currently on the market.  Instead of pricing your home right from the first day and capturing the active buyer interest, you will instead be promoting how other properties are priced right and in turn helping those homes to sell instead of yours.  Sure, it is true that you can reduce the price later, but the active buyers in the market now won’t wait around for “later.”

Reducing your price in small increments and/or also waiting to reduce your price is also not a good idea either.  This will cause you to be chasing the market downwards instead or pricing it ahead of the market curve.

Myth #3: The first offer is not the best offer.  I will get more offers.
Many sellers believe that it is wise decision to wait for additional and/or better offers.  Unfortunately, that is a very risk proposition at best.  Many times, there will not be a second offer.  If a seller is lucky enough to receive a second offer, it will most likely not be as strong as the first offer.  Additionally, more time would have passed and the property will be more market worn.  This is the number one reason why subsequent offers will not be as strong, because the buyer will see how long the property has been on the market and believe that they will be able to purchase it at a lower price.  If you were a homebuyer, would you pay more for a home that has only been on the market for 5 days, or a home that has been on the market for 125 days?

Myth #4: If I hold onto my current asking price, a buyer who is interested will eventually come along and make an offer.
This myth ties in with myth #2.  Buyers who are actively looking for a home will often be the most educated about the current local marketplace.  This is because they will most likely see your home and every other home that is directly in competition with it and priced within the same price range.  If your home is priced higher than its true market value, the buyer will most likely not give it serious consideration and it will be automatically eliminated from their final list.  Most sellers also make the mistake of treating real estate as a product.  Real estate is a commodity, and homes will only sell for what buyers value it at, and not a dollar above that amount.  As a seller, if you want to wait for a buyer to come along and pay more than the market commands, you will be waiting a very long time.

Myth #5: As long as I am listed on the MLS, it doesn’t matter which company I am listed with.
As a seller in the current real estate marketplace, the most important decision will be who you hire to market and get your home sold.  The MLS is a great tool, but that is all that it is- just a tool.  It takes a solid company with the right resources and also a knowledgeable agent who can use the tool properly and get the job done.  Additionally, the MLS is only one way to market your home.  It is vital to make sure that your home is listed on multiple top websites, exposed to all of the active buyers in the marketplace, and also to all of the active Realtors® who may have buyers in the area.