4 Things People Say About Selling a Home Today That Aren’t True
You’ve heard the stories: Maybe your neighbors sold their fixer-upper as is for $100,000 over asking price. Or your friends were deluged with crazed homebuyers engaged in a bidding war within 24 hours of putting their house on the market.
It’s no secret that today’s seller’s market is wilder and more competitive than it’s been in years, fueling sellers’ hopes of major profits if they list their own home, too. All of which could be true—but only if you gauge your market carefully, and handle your sale with care.
The biggest challenges is that sellers are seeing articles or hearing from friends that houses are getting absolutely crazy prices. However, these stories are the anomalies. But it makes sellers think that even their home—which may just be a regular home and not a super spectacular listing—is going to get some crazy price. That’s not necessarily going to happen.
For one, this strong seller’s market has started to show signs of softening, with fewer buyers and lower prices. This means sellers may need to reset their expectations. To help home sellers separate fact from fiction, here’s a look at four myths you’ve probably heard about selling a home today, and why they might not be true for you. Plus, we’ve got some tips to adjust your strategies for the realities of today’s market so you can up the odds that your home actually does become the next success story on the block.
1. ‘You don’t need to renovate—buyers will take anything’
In such a hyperactive market, sellers may get lazy and expect to get a high price for their homes without making any repairs or upgrades. But this could set you up for failure.
Despite the limited housing inventory, high-priced homes that need too much work are a turnoff, since many of today’s buyers expect homes to be mostly move-in ready. The truth of the matter is this: A fresh coat of paint, tidying up the landscaping, and a good scrub-down are inexpensive upgrades that bring a return on investment of thousands of dollars when you sell. And don’t neglect minor things like replacing lightbulbs and fixing broken doorknobs. They count.
2. ‘You can price your house sky high and get that amount’
It’s true that home prices have been going up. According to the National Association of Realtors®, the average home price was $363,300 in June (the latest month data is available), 23% higher than a year earlier. That’s quite a rise, but don’t let those dollar signs get to your head.
Homes need to be priced realistically in line with what the market is asking, the type of home it is, and its condition. Pricing too high also means the home could sit on the market for a while. Plus, buyers are beginning to push back on the high prices by delaying their home search or not making offers, forcing some sellers to reduce their asking price.
3. ‘Sellers don’t need to market their listing much—it will sell’
Some sellers think putting a lot of effort into online marketing is pointless, since the home is bound to sell quickly regardless of what they do. But consider this: Most homebuyers start their search online—so if your listing falls short, you just won’t get much attention.
Plus, sellers aren’t always selling to local buyers who can drive by or are familiar with the area. Photos, videos, floor plans, 3D tours, and other details help homebuyers decide if a home is right for them and if they want to see it in person.
4. ‘In a bidding war, it’s a no-brainer to just pick the highest offer’
Bidding wars are common these days, with sellers receiving multiple offers with some over the asking price. Accepting the highest offer may be tempting, but it’s not always the best move.
A lower offer that’s all cash, for instance, may be more attractive, since it eliminates the financing hurdle and could mean a quick closing. Or you may need extra time to stay in the home until you find somewhere to move. Sellers should examine all factors of every offer, including a buyer’s finances, and not focus solely on price.
Many sellers have other motivators that could sway them toward choosing an offer. This could include longer occupancy, more flexible closing terms, or other outside-of-the-box offerings, like a credit toward the seller’s moving costs.