When someone makes the decision to sell a home, it seems that almost instantly, they’re inundated with advice about how to go about the process in the best way. From well-meaning friends and family members to ill-advised real estate experts, there is no shortage of people lining up to tell you about their experience selling a home, who to go to, when and why to sell and everything else under the sun.
While some of this guidance is warranted and should be adhered to, there are often snippets of so-called “wisdom” that come from a place of inexperience and should be taken with a grain of salt. Today, let’s take a look at a few of those sentiments, and why home sellers should think twice before following the advice.
1. There is a perfect season for selling your home.
Most often, you’ll hear people tell you that the spring is the ideal time to sell your home. Everything and everyone is crawling out of a winter hibernation and ready for a fresh start. School is about to let out and you can spend the summer moving in and getting settled before starting into a new academic year, maybe in a new district. Landscaping looks lush as flowers and shrubs begin to bloom.
While there is some truth to this, the reality is that anyone can sell at any time, given their property is in top shape and they partner with a reputable agent. Consider, for instance, the perks of listing your home at the beginning of the year. People are back from their holiday vacations and ready to make a move. While that makes the point, it also introduces a new one: Every market is different. Winter in Minnesota looks different from winter in Miami and the snow and sleet could lag on into the spring or even summer months in some areas of the country. Sure, you could list in a particularly busy or attractive season, but think of all the competition you’ll be up against if everyone else heeds that advice.
2. Open houses are the end-all, be-all.
Sure, open houses are fun. They’re also a great way to meet prospective buyers and give you a chance to show off your property in a relaxing and entertaining setting. Yet, for all the frills they afford, these showings are rarely where a deal is cinched. More often than not, you’ll get a slew of people who have simply been interested in seeing the inside of your home for a while, and this offers them the opportunity to sneak a peek.
Still, be sure to come to the event with plenty of brochures about your home and be ready to wax poetic about its features and benefits to anyone who is willing to listen. You might not find your dream buyer that day, but you may, so it’s worth it to be prepared.
3. You can save money by skipping an agent.
You might see the 6% commission fee that most agents request to list your home and balk. Surely you can sell on your own, right? The truth is that while it’s possible to do so, the process is often more laborious and ultimately, most costly, than if you had let a professional handle the reigns for you.
It helps to understand exactly what your agent will be doing when you enter into a partnership. Aside from listing your home on an MLS, he or she will also be actively involved in advertising your home. This is done through custom marketing materials such as posters, flyers, e-newsletter alerts, yard signs and more. Your agent can also give you invaluable advice about where to live (read more about practical tips here), what kinds of properties to look for, which areas to avoid and more.
This money also goes toward helping your selling agent partner with a buying agent who also has a qualified buyer. In this scenario, the two agents ultimately split the commission. In the case of agent commission, you get what you pay for. If you want to see the most desirable properties and remain top of mind at your agent’s office, it helps to be willing to pay the full 6%, not try to whittle the price down to 2%. This can also help yield you a bevy of qualified buyers who are ready to act and may even be willing to enter into a bidding war to obtain your property.
4. A high price is worth holding out for.
You may hear that it’s OK to price your home at the very top of the limit. Then, you’ll just need to sit back and wait until someone bites the bait. Not only is that an unethical route to take, it could also be an incredibly lengthy one. You could be waiting for months or even years for your home to sell and if you’re price gouging it, it may remain on the market indefinitely. In the meantime, you’re still paying the mortgage and utility bills and likely unable to move yourself. Also, neighbors and interested passersby are wondering why you can’t sell. Is something wrong with your home?
Rather, it’s in your best interest to price your home and property as fairly as possible. Check the comps to see what similar homes are going for in your area and work with your agent to determine a top and bottom selling point. Then, seriously consider every offer that comes your way, even if it’s a little lower than you expected.
5. You can predict next year’s market.
Some agents might tell you they can paint a fairly accurate picture of what the real estate market will look like next year. However, like any other market, this one is susceptible to ebbs and flows and while this year might be an upswing, the next might see a downfall. Consider the housing crash of 2008. If anyone could have predicted just how detrimental that era would have been, real estate experts around the country would likely have made different decisions in the year preceding.
Thus, know that your real estate agent can offer an educated guess at best about what market conditions will be like in the future, but it is still just a guess. The same goes for any future-focused advice you get from friends, family members or colleagues.
Deciding to sell your home is one of the most important and impactful decisions of your life. It’s worth the time to find someone you trust to help guide you through the process. Snippets of advice are a dime a dozen so take them as you will, consider the source, and ultimately make sure you’re the one making the final decision.
