Today we’re going to talk about three common myths in real estate and what the actual truths behind them are:
1. If it’s on Zillow, it must be true. Zillow is a great tool for consumers because it gives you an estimate of what your house is worth instantly. However, Zillow doesn’t know what your house looks like, what improvements you have made, or where it’s located. All they are doing is running an algorithm based on homes in the area and giving you an estimate on what your house is worth. Sometimes it’s accurate, but sometimes it’s off by 20% or more. If you’re trying to find out where you’re going to price your home, definitely check with a professional first.
2. Sellers should overprice their homes to leave room to negotiate. The asking price of your home does not dictate its sale price. The asking price does dictate how long it’s going to take to get what the market is willing to pay. There’s no risk in underpricing your house unless you’re too eager to accept the first offer, and typically the market will react to your house very quickly. We don’t want to list it too low, but we want to list it at market value. The worst thing a seller can do is overprice their home from the start, which will alienate the property from potential buyers and cause other homes to sell sooner. We want to be competitive, have good value, and get a quick sale.
“The asking price of your home does not dictate its final sale price.”
3. All real estate agents are the same. Just like in any industry, there are certain people that excel in their careers, and there are bottom-of-the-barrel performers. Having a professional represent you is far different than having a licensed agent. Anybody can obtain a real estate license with 90 hours in a classroom and a passed test. That doesn’t mean they understand how the home sale process works from step to step. Hundreds of thousands of dollars can be lost if a sale is not handled properly by a professional.
If you have any questions for me about buying or selling a home or need any assistance in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
