Home Selling Myths – DeBunked Part I

 

Most of us don’t buy and sell homes very often, so when we hear a myth that sounds plausible, we believe it. Last week I shared home buying myths and debunked them. This week, I thought I’d jump to the seller’s side and debunk common myths people have about how best to sell their property.

Myth #1: I don’t need a Realtor. Yes, you do. I am a real estate broker and I’ve hired Realtors to represent me when I buy or sell property. A typical, run-of-the-mill real estate contract requires a 10-page purchase agreement, 6-8 disclosures of one to twelve pages each, and 3-5 inspections, all of which need to be reviewed and understood. Real estate law and practices are updated frequently, so knowing the latest information requires constant education.

Myth #2: I looked online and I know what my house is worth. No, you don’t. If you read the disclaimers on those websites, they admit that the prices they list are only estimates and that you should talk to a real estate professional to determine your property’s value.

Myth #3: I can negotiate my home’s purchase price better than a Realtor. This simply isn’t true. One of the biggest benefits to having a Realtor is his or her ability to serve as a third party negotiator. When a prospect has looked at your house and not made an offer, how can you find out if an offer is coming? If you call for a status report, you are breaking the first rule of negotiating by making first move. It is seen as weakness and it communicates a sense of urgency you may or may not care to admit. When a Realtor calls, he or she is just following up in the process of looking for a commission—not putting you at a disadvantage.

Myth #4: I don’t need inspections; the buyer will get them. My recommendation to every home seller is to get as many inspections up front as you can, from wells and septic systems to sewer laterals, roof, pest and fungus, home inspections, preliminary title reports and more. These inspections provide value for lots of reasons. First and foremost, inspections tell you what’s wrong with your house, giving you the opportunity to take care of minor issues before they come to a buyer’s attention. Fixing little issues will also make your house show better. Finally, it will make your sales transaction go more smoothly, because you’ll have no last minute surprises for the lender or buyer to resolve prior to the close of escrow. Having inspections up front takes all the wind out of a buyer’s sails in the event that he or she wanted to renegotiate price because of some newly discovered issue.

Next week, I’ll debunk four more myths about selling your house.

If you have questions about real estate or property management, please contact me at rselzer@selzerrealty.com or visit www.realtyworldselzer.com. If I use your suggestion in a column, I’ll send you a $5.00 gift card to Schat’s Bakery. If you’d like to read previous articles, visit my blog at www.richardselzer.com. Dick Selzer is a real estate broker who has been in the business for more than 40 years.