Starting to think about selling? No doubt you’ll start seeking and receiving all sorts of advice from friends, family…the internet. I’ve rounded up my top 5 selling myths and misconceptions that you’ll want to understand to ensure you don’t leave money on the table when it comes to selling your home.
Myth 1: Price high, negotiate down
Pricing your property realistically is paramount to a successful selling campaign. If you want to attract the largest selection of suitable buyers you should be realistic about pricing from day one. Generating interest from the moment you come to market, when your listing is fresh will ensure your property isn’t overlooked. Being able to generate strong demand and interest will give you more leverage during negotiations, particularly if you are in a multiple offer situation. Naturally the longer a property remains on the market, the more likely it will attract low ball offers from people looking for a desperate sale. Pricing strategy is therefore a critical component of the most successful transactions.
If you’re particularly worried about underselling but are ready to meet the market where it is, a strategy that may suit your situation is a no price strategy. This is where you go to market without a listed price to gauge interest, then using feedback from home opens set a buyer’s range, or written range to suit.
Another strategy that may suit a property that is difficult to price is taking it to auction. Remember, a property that passes at auction isn’t necessarily a failed campaign. A well thought out auction marketing campaign may flush out all possible buyers, some who may not be able to buy under auction conditions which are very rigid in WA. Once the auction is over a skilled agent will negotiate with parties from the auction to achieve the selling price and terms that suit you, which can very well be above your auction reserve after the fact.
Myth 2: Price exactly the same as my neighbour
Simply expecting your home to sell for the same amount as your neighbour’s property without thoroughly comparing beyond baseline statistics, is a sure way for a home to sit on the market. When you compare your home, be realistic. Put yourself in a ruthless buyer’s shoes. In this day and age we can access online sales data fairly easily. Compare your homes size, age, block size, finish, features etc. to get a good feel for what properties that are similar to yours have sold for. You neighbour’s home might have sold for $50K more because it has a bigger home square meterage, it has a pool, is a newer build etc.
Be wary of agent’s who promise you that they can get you a much higher price than what is realistic. Their interests may be self serving, they might quickly change their tune once you’ve signed up and make you feel like you’re not being completely unreasonable with the expectations that they initially promised you.
Let me add some clarity here. There’s nothing wrong with an agent that agrees to test the market at the price you want to achieve, but expectations both ways need to be clearly communicated. Importantly you should be flexible and open to listening to their feedback and advice, adjusting quickly within that critical first 7 – 14 days if there is just no interest.
Myth 3: I don’t need an agent!
The rise of the internet has seen a rise in a DIY approach to selling. Many people take the plunge and try to DIY their home sale without first considering:
- Do I have the mental fortitude to take on the process. It may require a lot of time and effort, and involves one of the biggest investments of my life?
- Do I have the technology, styling and marketing skills in order to effectively market my property?
- Am I happy to deal directly with buyers who can be quite critical of my home; need to be screened and qualified for financing; and will likely come into the situation looking for a “deal” given it is a private sale and negotiate hard for the cheapest price they can get.
An experienced agent will have better market insights. An agent who is actively selling will be in the mix day in, day out, observing market trends to ensure your campaign is optimised to its full potential. Their role encompasses more than just throwing an advert on the internet. You have enough going on, hiring a professional agent allows you to get on with your busy life.
Whilst you might save on the commission, what might you be loosing on the other end by trying to do time, money, patience, sleep – is it worth it?
Myth 4: Go with the cheapest agent – they’ll achieve the same price anyway
When looking for a real estate agent, the biggest piece of advice I give people is to look for an agent who instils confidence in you, that demonstrates that they genuinely care about your outcomes and future, whose personality and style aligns with you. You could potentially be working with this person over several months, but if the relationship becoming acrimonious it may be hard to achieve the best outcome because you don’t trust them. When trust is gone in the real estate transaction it makes it more difficult to make decisions. Your agent may be giving you the right advice, but if you find them too pushy, or feel they haven’t communicated with you enough and given you all the facts, you may be less inclined to receive / agree their advice, therefore impacting your end result also.
Take for example an agent who charges 1.8% against another who charges 2.4%. Deciding on price along may save you $3K on a $500,000 sale, but what if the 2.4% agent was a better negotiator, read people better, understood your needs better, took the time to showcase and stage your home and consequently achieved $20K more for your property, or the same price but with much better selling terms that suited your needs. Would the difference not be worth it?
Tempting as it is because we all love a good bargain, don’t value cheap above all else. Ask yourself, how do I feel about our interaction, what do their past clients say about them, what strategies do they bring to the table that are different and innovative, what is their industry experience…these questions should ultimately guide your decision making, and sometimes the agent will be the cheapest, but other times they won’t.
Myth 5: All I need to do is advertise online
There is a lot more to selling a home than just putting up an online listing and passively waiting for offers to roll in. When it comes to selling your home investing in a diverse number of marketing activities, from online websites to social media, ‘For Sale” signs, brochures, local letterbox drops and home staging is the best investment you can make. One of the primary goals of a selling campaign is to attract buyers.
By casting the widest possible marketing net your property will be viewed by as many potential buyers as possible. Why is this important? The more buyers you attract, the more competition there will be and the higher the price you are likely to achieve.
That’s not to say a cookie cutter, one size fits all approach, with several marketing activities for every home is the solution either. You must think of the likely buyer demographics, where are they online, in print, in real life? Then select the activities that will yield the best result.
However before you start thinking about spending money here, prepare your home for sale to ensure it is looking its best. First impressions make lasting impressions. Don’t invest in marketing until your home is up to the standard that the price you are trying to achieve demands.
Check out my seller’s guide here for more insight into marketing your home and possible marketing channels.
Myth 6: My home is fine, I don’t need to refresh or declutter
Whilst your home may be perfectly functional for you, put your buyer’s hat on. What is the one thing you want to feel when you enter a space that you will call home? Spaciousness and blank canvas typically top the list. You want your home to appeal to the broadest range of buyers. Cast your mind back to when you bought your home, what did it look like and why did you fall in love with it. Who will be the likely buyer of your home? What age and stage of life were you at when you bought the home. Then be honest, will your personal effects, chunky furniture, colour scheme etc. detract? If you answered yes then it’s time to refresh and declutter.
Getting your home ready to go to market doesn’t have to mean spending bank on a full scale renovation. Simple repairs go a long way, e.g.:
- Fresh coat of paint.
- Boost curb appeal, trim trees, mulch, potted colour are simple cost effective options.
- New kitchen door handles.
- Deep clean.
- Update light fittings.
- Recover or paint kitchen doors.
- Upgrade your bench top.
- Tick off those minor repairs you’ve procrastinated about, oil that squeaky door, replace the broken floorboard, change the broken window, replace the ripped flyscreen, re-grout tiles, change the shower head.
- Fresh window coverings
Removing personal items like photos, books and ornaments and decluttering – which also includes bulky extra furniture applies here. A home may be able to take your furniture, but just because it can doesn’t mean it is showcasing the space to its best potential. You might also consider engaging a professional stylist to stage your home. A cost effective option can be partial staging where the stylist brings in neutral pieces, sympathetic to the style of your home that they use with your existing furniture that they have rearranged to make each space in your home shine.
Don’t have anywhere to store your surplus stuff, this is a great opportunity to donate, sell or throw away those items you no longer need, and store those that you value.
My home seller’s guide dives into this further. Feel free to download your copy from my freebies page, here. No opt in required.
Ready to make your next move?
Let’s make it together! I hope you found this myth busting blog helpful and that it gives you some much needed confidence and clarity as you prepare to sell your home. When you are ready I would love to hear from you about your goals; to support you with a quality selling process that ensures nothing is left on the table. You can get in touch with me here when you are ready.
