Today, let's talk about some common misunderstandings in buying or selling a home. Ok, all of them are False, followed by the Facts. So get to reading, and changing the way you've been thinking. 

 

A Home Inspection Passes or Fails

False. 

A home inspection is meant to assess the condition of the home. They provide a report explaining any and all issues along with a summary of the key systems with an estimated life span of them. There's no bias of a giant stamp on the report Fail or Pass, so don't offer to buy him lunch or slip him a $20. 

 

The Zillow Zestimate Is What My House Will Sell For 

False. 

The Zillow Zestimate is just a starting point. A general idea of what homes in the area have sold for. It is not an exact evaluation. Even Zillow CEO Spencer Rascoff sold his home for 40% less than his home's Zillow Zestimate. 

 

For Sale By Owner Saves You Money

False. 

National Association of Realtors studies show that a FSBO home will bring in 15-20% less than what an agent would have brought in. Here's a few things that an agent is experienced at that a homeowner might be a little out of their element in. 

  • Marketing. Sure there's lots of free advertising, but an agent is prepared to go all out with marketing and has a plan for each listing. 
  • Screening Potential Buyers. Do you really want to let everyone in? I think you'd rather have a professional screen who is coming in and out of your home, wouldn't you? 
  • Handling incoming inquiries during the working day. So you know you don't want to miss those potential buyers, but you also have to work your day job. An agent would be available during those working hours to show the property for you. And do you really want your phone ringing non stop with calls and messages from people "interested" in the property?
  • Negotiating and filling out the contract with all its contingencies. The average contract is about 6 pages long. Are you able to interpret each item on there? An agent is a skilled negotiator, and will be able to get you close, and sometimes more than the listing price. 

 

  Home Improvements Pay For Themselves

 

False. (Mostly)

On average you'll get back about 64% of all remodeling costs. 

Although - here are some improvements that ranked high on this study. (<--- Click the link)

  • Attic Insulation: 116.9%
  • Manufactured Stone Veneer: 92.9%
  • Garage Door Replacement: 91.5%
  • Steel Entry Door Replacement: 91.1%
  • Fiberglass Entry Door Replacement: 82.3%
  • Minor Kitchen Remodel: 83.1%

My advice, seek out the advice of an agent in your area before starting an improvement project if you're getting ready to sell. They are very knowledgeable as to what your home will need done in order to sell in your area market. 

 

  It's Better To Price On The High Side And Negotiate Down

False.

Overpricing often leads to your home sitting without much interest. You'll have fewer showings. Fewer showings mean fewer offers. Overpricing can also help your competitors. Chances are there are similar homes with similar features in your area that are priced just right. Experienced agents also know that an overpriced home that is later reduced will lack the impact of a home just coming onto the market that was priced right from the start. Maybe you're thinking "well a buyer can always just make an offer." That really isn't the case with home-buying. Most buyers, while always ready to negotiate a price, don't want to bother with making an offer on a home that is overpriced. 

My advice again, speak to an experienced agent in your area, and really listen to what they have to say. And check out my blog post on how to be a client rockstar. 

 

If you have any questions, or are ready to buy or sell a home in Southwest Florida Area, give our Team a call today!! 239-910-5543

 

Check back on Friday to find some fun and interesting things to do around town!