This month I want to address some general misconceptions Regina REALTORS® deal with daily. We believe that some people may not have the full grasp of what’s what in the Real Estate world. I have compiled a list of the top 7 real estate myths I commonly hear and some conversation around them.
1. A home inspection either passes or fails. The truth is, is that there is no test score when it comes to a home inspection. The main purpose of an inspection is to give you an indication of the over all condition of the home and ensure there aren’t any major concerns or defects that were not seen or even visible at the time of the offer. As a buyer, you make the final call if the property is something you want to purchase based on its condition. If there are any major defects uncovered in the inspection we would more often then not renegotiate the purchase price with the seller.
2. It’s better to price your home on the high side to leave room for negotiations. The bulk of the time this will ultimately drive your final sales price down. Studies have shown that when a home is priced correctly and the property is exposed to the market it will sell for the market top dollar. Verses, when you unveil the property to the public at the wrong price, everyone sees it, knows it’s overpriced and labels you as a non-motivated seller. By the time you’ve reduced to fair market value you’ve lost out on all the buyers looking when your home was priced too high because they’ve purchased something else, buyers assume there is something wrong with it because of the extended days on market and less buyers and agents see it. Bottom line, the longer a home is on the market at the wrong price the less it will ultimately sell for.
3. When offering on a home you need to “start” low. Throwing in a low-ball offer more often than not will leave you with a high counter offer. My best advise is to determine the market value of the home and write an offer close enough to this value that the seller doesn’t want to take the risk of countering and potentially losing the deal altogether.
4. Spring is the best time to sell. Although historically spring is the busiest time of year for real estate transactions that doesn’t mean it’s the best time to buy or sell. With an increased number of buyers there is also an increased number of sellers creating more competition. If a serious buyer is out there it doesn’t matter what month it is, they are going to buy it. Real Estate is more and more situational these days rather than seasonal.
5. All realtors are the same. Every REALTOR® is bound by the same Code of Ethics and use the same standardized form but we all run our own businesses. We all work differently, offering a different level of service and a different real estate experience. When searching for the best agent to represent you; a fair question to ask them is what they do differently than others and how they are going to bring value to your transaction.
6. Selling real estate is easy and all REALTORS® make an exorbitant amount of money. Real Estate can be lucrative but it isn’t easy. It’s running all aspects of a business and requires wearing many hats. To succeed in this industry it takes a lot of hard work and dedication. 87% all Real Estate professionals fail in the first 5 years; that tells you how easy it is.
7. Selling a home “for sale by owner” saves you lots of money. I totally understand the thought of trying to get a home sold yourself, saving on commission can mean some good money in your pocket. The challenge to it is that that there is a lot more to selling your home than putting up a sign and maybe putting an ad in the newspaper, holding an open house and waiting around for a buyer. The problem is this doesn’t get homes sold anymore which is why 68% of all For Sale by Owners or FSBO’s end up listing with a Realtor® resulting in both money and time being wasted.
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Real Estate Agency
3889 Arcola Ave, Regina, SK S4V 1P5
Phone: (306) 529-0009