Have you noticed that since you put the word out that you’re thinking of selling your home, everyone becomes a real estate expert? From your aunt Martha (who last sold a home in 1973) to your next-door neighbor, everyone has advice.
Read on for some of the biggest home selling myths perpetrated by these “experts,” and watch us bust them!
1. The online estimates of my home’s value are accurate
Nothing could be further from the truth. In fact, former Zillow CEO Spencer Rascoff once called their Zestimates merely “a good starting point,” according to the Los Angeles Times’ Kenneth R. Harney.
Rascoff went on to admit that Zestimates are off by about 8 percent, on average, but in some parts of the country the site’s error rate is drastically higher.
The only reliable method of determining a home’s true market value is by using local MLS statistics and only an appraiser or local real estate agent has access to these.
And, no, your home is not worth what you need to get out of it.
2. When pricing your home, price it high to start with
There’s a strange dichotomy in the real estate industry when it comes to overpricing a home: the seller very often ends up netting a lower-than-hoped-for price.
Sellers that overprice their homes aren’t fooling anyone. Buyers and their agents are fully aware of the price points in various neighborhoods and won’t waste their time on a home that is obviously overpriced.
What happens to these homes? They languish on the market, the listing becomes “stale,” and by the time the seller becomes realistic it is, sadly, too late.
Pricing a home appropriately for the market at the outset is critical to getting the home sold for the amount you want.
3. You don’t need a real estate agent to help you sell your home
This is partially true – you may be able to sell your home on your own. But, why would you want to?
If you think you’ll save money, think again. In 2020, the average sales price nationwide for a for-sale-by-owner (FSBO) home was $217,900, according to the National Association of Realtors.
The average sales price for a home sold with a real estate agent’s assistance sold for $242,300. That’s $24,400 more than a home sold by owner.
Additionally, selling a home requires marketing skills and, more importantly, a hefty marketing budget. It requires an understanding of contracts and the ability to negotiate. Plus, it will take a lot of your time – how much is that worth to you?
Old myths die hard, but we’re doing our best to help them along. Feel free to reach out to us with any questions about selling your home.