A property sales transaction can be a complex process, especially for buyers and sellers who have never been through it before. These days there is a world of information at our fingertips, and of course, the well-intentioned family and friends who are eager to give advice, but receiving input from so many sources can lead to more confusion and uncertainty. As a result, there are some home-selling myths that have become commonplace in the property market.
Here are a few truths and facts to expose the fiction and steer sellers in the right direction:
Fiction – The selling price is determined by sellers
Fact – While it is the seller who decides whether they agree to the selling price, other factors come into play such as the property’s location, size, condition and the market. If buyers do not perceive the home to be priced at fair market value, they will not be interested in purchasing it. Buyers in the market will have a large influence on the selling price of a property. If the home is in demand, it will fetch a higher price than if it is not. The initial asking price of the home can vary greatly from the actual selling price.
Fiction – Overpricing leaves room to negotiate
Fact – Instead of leaving room for negotiation, overpricing drives buyers away. Inflating the home’s price will alienate buyer pools, in that buyers who could afford the home at its true market value will overlook it. Equally, those who can afford the inflated price will soon realise that the home does not compare to others in the same price bracket. The home could stagnate and sell for far less than what it may have sold for if listed at the correct price from the start.
Fiction – It is not necessary to make repairs and prepare the home for sale
Fact – There is a market for buyers who are looking for a property they can renovate themselves; however, most are looking for a home that is ready for them to move in. A home in ill-repair will be far less attractive to buyers than a home in pristine condition. Although dependent on budget and time frame, it is recommended that all major repairs are seen to before the home is listed. If any defaults are found during an inspection, the seller can then discuss options with the buyer regarding additional repairs or dropping their asking price.
Fiction – All renovations and home improvements pay for themselves
Fact – While certain renovations and home improvements will increase the home’s value, it is seldom that the seller will receive all the money back that they have invested in the project. Therefore, before deciding on any project is best to get expert opinions on what should be fixed or changed and what kind of return can be expected as a result.