Buying or selling a house is not something most of us do every day, but one of the biggest financial decisions that most of us would do in a decade or at least once in a lifetime. There are a number of myths that either buyer or seller should be aware of because buying into these myths can cripple ones chances of either buying or selling a home at the right price.
Here are some of the most common ones that can deceive buyers and sellers:
Setting the price higher than what you expect to get. Contrary to this myth, listing a home at a very high price may actually net a lower price because shoppers and agents tend to skip homes that are priced way higher than the market value. Even if you lower the price in the next few weeks, "Buyers are highly suspicious of houses that have sat on the market for more than three weeks," according to Nela Richardson, chief economist for the brokerage Redfin.
You can get a better deal as a buyer if you don't use a real estate agent. US NEWS (USN) reports that, "If the house is listed with a real estate agent, the total sales commission is built into the price. If the buyers don't have an agent, the seller's agent will receive the entire commission".
You save money selling your own home. It is possible for an individual to sell a home on his own but it won't be easier than it is with the help of an agent. Furthermore you soon find that buyers will expect a discount from you so while you may be saving on commission you may actually end up selling your home at a lower price.
The market will only go up. "They think that the market only goes up," Elika tells US NEWS. "They don't think about when a correction will come." The recent recession should remind everyone that real estate prices can fall.
You should renovate the kitchen and bathroom before you sell. If your kitchen and baths work, any remodeling effort can have disadvantages. The prospective buyers may not like your taste. "You're better off adjusting your price accordingly," says Kevin Brown Jr., president of Praedium Real Estate Services in Pittsburgh and a regional director of the NAEBA. "Most buyers want to put their own spin on things."
You'll earn back what you spend have spent on renovations. If you renovated your house, you may be able to sell it quickly but you may not be able to earn back what you have spent "Very few things will bring you great returns," says Sabrina Booth, an agent with Redfin in Seattle. "If you're going to do these projects, it's better to do them for your own enjoyment."
