Myths vs Realty
We all receive it, the advice filled with good intentions. Be it tips on how to negotiate on an offer to how to price your home. The reality is that a buyer or seller benefits most with the recommendations from their local real estate professional. No book, relative or friend has the knowledge or tools that relate directly to the specific market trends, customs and practices that directly influence your community/property.
There are myths on how to approach varied aspects of the real estate process as well as the reality of a result driven choice.
I’ll make a low offer with hopes of meeting the seller half way on the price. After the value of the home has been affirmed with comparable home research the proper price position of the home becomes evident. In the case that the home is on the market for a correct price an offer that is really low may end up offending the seller. Instead of the spirit of negotiating the seller may hold firm to the list price or even refuse to respond. The attempt to negotiate half way now has dampened the attitude of the seller and a defensive position may be the result.
I’ll price my home high so it will appear that I have negotiated off more on my price. The reality is with an overpriced home a seller generally misses opportunity. The home is out of the competitive position and will be overlooked. Additional days on market may stack up and with that becomes a lessened negotiated position. Best opportunity is to have the home positioned correct so that it is one of the stand outs in a price range. This creates some strong interest possibly multiple offers and can result in receiving top dollar for your home. An overpriced home may give the buyer perception of what is wrong with the property that has sat unnoticed due to overzealous pricing instead of appreciating all the things that are right about it.
The buyer can see past this problem. Stained/worn nasty carpet, personalized paint tones, deferred maintenance – all spell out buyer objection and ends up costing the seller much more than the actual dollars to correct. There is a very true statement … Price cures all. If a home has varied obstacles as referenced, there will be a buyer for the home. It just comes down to the price. Problems/obstacles create buyer resistance and perception. Stained carpets become in the buyer’s mind that the home has not been maintained well. The seller must not have taken care of it which in turn results into much lower price than the actual cost to replace the flooring. Not all buyers can see past cosmetics and will not give the home a second consideration. The end result generally is additional days on market, much lower on the achieved price and lost momentum on your property.
To avoid the pitfalls in the process of purchasing or marketing your home, one should enlist the local real estate professional