The uneasy cloud hanging over the housing market can make buyers and sellers more vulnerable to real estate myths. For example, some believe that the cooling housing market and moderate buyer demand make it harder to sell. When in reality, today’s selling activity is well above pre-pandemic levels, meaning opportunities to sell have not passed. Below are some other myths my team and I hope to clarify.
The Myth of First Offers
One common misconception believed by sellers is that by accepting the first offer, they have admitted defeat. Some are going as far as to imply acceptance means missing out on a potentially higher offer down the road or a bidding war. The best advice is never to disregard the offer just because it’s the first; you may find it’s the best offer.
Consider if the offer meets your goals and how rejecting it may put you in a worse position by having the property stay on the market longer, with no bites. The highest offer you receive may not always be the best, especially if it doesn’t fit into your timetable or if there are added terms to the deal.
“Entice with the Price”
Another way your home may sit on the market longer is if, as the seller, you agree to list the property at an overpriced rate. Doing so may alienate potential buyers who feel they do not have a chance at purchasing. If you decide to reduce the price, you may attract more attention, increasing the possibility of a bidding war, though this comes with another set of myths.
Price reductions have been portrayed as the desperation phase, but it is nothing to hang your head about. Contrary to popular belief, reducing the price is meant to align your property with comparables in the area and maximize reach.
Buyers have a similar responsibility to not isolate the seller by coming in with a strong offer. If you approach the seller with a low offer, you risk insulting them if it’s unrealistic or nowhere close to the asking price. To meet in the middle, you’ll want to offer a close-to list price or at list price, which you can always negotiate further, adding more wiggle room.
Don’t Believe Everything You See Listed
After listing your property, you may be tempted to visit popular listing sites, comparing them to neighboring homes for sale or ones recently sold in the area. These sites are not always accurate. They are intended to generalize its value based on previous factors in the system.
If searching for an exact estimation, get the home appraised in person by a trusted appraiser. They will consider the possible additions or cosmetic updates you may have completed, whereas these listing sites will not.
Trust in Your Agent
Another trusted professional you will want in your corner is an agent. We’ve heard the myth that selling your home is easier when you do it yourself. It is why, here at NMC Realty Group, we provide our expert knowledge on current market conditions, how best to navigate them and help stray you away from mistakes that could cost you time and money.