Costly Home Selling Myths
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COSTLY HOME SELLING MYTHS: I need to price my home high enough to negotiate…. the less commission I pay, the more net profit I will make…. all Realtors® do is merely post on the MLS and wait for the phone to ring… and other GREAT myths that DECREASE a home seller’s PROFIT.
- I need to price my house with room to negotiate. BAD Idea. This belief can cost sellers big money. A new home on the market gets the most activity in the first week, steadily decreasing through that first month. If the home is overpriced it will sit. The longer it sits, the less money sellers make (plus the on-going carry-costs & stress). A well-priced home will generate quick, and potentially multiple, offers and will have a higher probability of making it through the inspection period and to final close of escrow. A great agent knows how to correctly price a home, market it well, and track the competition for pricing adjustment needs. More information on competitive positioning found here.
- The less commission I pay the more I’ll make. The market has been strong for over a decade, and a strong market always brings profiteers. Many of the “newbies” are public and shareholder losses are not sustainable. Those that are public have not yet survived a market downturn. The truth is, agents who excel in this business do not discount services because they get more money for their clients and reduce liability and stress. You can do your own taxes, or you can hire a CPA and save multiple times the fees in tax savings. You get what you pay for.
- Agents just post to the MLS and wait for the phone to ring. The majority of licensed agents are inactive, part time or have completed less than a handful of transactions. Chances are, you know someone with a license. However, if this is a large or important transaction for your financial portfolio, and you prefer to limit your liability and stress, you need a fully dedicated real estate professional. Full time agents work 7 days a week and have lessons-learned from hundreds of transactions over many years. If you live in a top area for relocation such as Phoenix or Vegas, local advertising is for the agent, not the property. You need an agent under an international brokerage, as well as internet intelligence and expertise. A really great agent will invest their as-of-yet unearned commissions to promote your home in places targeting out of state buyers, such as the Wall Street Journal, New York Times and Robb Report, and provide you the links on a regular basis.
- Buyers need 20% down to buy a home. Not true. Today there are loan programs available from zero down. Most FHA loans require only 3 1/2%, and conventional loans as little as 3-5%.
- Millennials don’t qualify for home ownership. Not true, and most of today’s first home buyers are qualified, without the need for excellent credit or a traditional employment profile. And more are homesteading to negate escalating rents and to take advantage of historically low interest rates. (more information on why they are buying now here). With over 80% of all homes sold being in the non-luxury price range (in the Phoenix Valley under $400,000), there are plenty of affordable options to choose from. A tenured agent can recommend many resources based on each specific situation.
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About the Author: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To request a printed market report, home evaluation, consumer guide, or info on your specific market, contact Denise at 602.980.0737 or email Denise@AZMultipleListingService.com. Denise’s husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!
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