My New Outside Blog: Myths that Get You in Trouble

Myths that Get You in Trouble

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

 

Comment balloon 4 commentsConnie Goodrich • October 08 2015 12:31PM

Comments

These are all great points, especially the first two on negotiations. In the end it comes down to price. 

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) about 3 years ago

That's great information for buyers and sellers, Connie!  Buyers who have come in low hoping to negotiate somewhere between list price and their original offer, have missed out in the brisk seller's market we have had here in Sacramento.  

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 3 years ago

Buyers and sellers who miss the mark by their own negotiating tactics can prevent them from the sell/purchase that was a great opportunity.  Very frustrating for the agent to work hard and have it crator due to know it all attitude we sometimes come across.  But we do represent those clients and it is their wishes we put forward.  Thanks for the visit Pam & Myrl!

Posted by Connie Goodrich, CRS ABR (McKinney Realtor)Texas (Keller Williams Realty) about 3 years ago

Hi Connie Goodrich ,  People have their own ideas, based on what they have heard from others, who have no idea what they are talking about.  Then they think they are the expert, causing problems with the Agent.  Nice Blog!

Posted by Larry Johnston, Broker,Friends & Neighbors Real Estate, Elkhart,IN (Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC) about 3 years ago

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