6 Real Estate Myths That Need Debunking
Some Real Estate myths have some truth; others are outright false; and still others depend on a variety of factors that are best discussed in depth.
Myth #1: Spring is the best time to sell a home.
Reality check: Often true, but not always
Traditionally, buyers come to the market in the spring to secure a new home before the start of the following school year in September. This has led people to believe that spring is the optimum time to sell and buy a home. As it turns out, not all buyers are families with kids! Buyers these days are single women, downsizers, baby boomers, and those with no children whatsoever! To be technical, the best time to sell your home is when inventory and competition are low which is in the dead of winter.
Myth #2: Always change bold paint colors to neutrals before selling.
Reality check: False
Bold doesn’t automatically mean bad. Sometimes, a room calls for a grand color in order to play up an architectural feature or add cheer when there’s little natural light. But even if a room sports a bold shade of paint, home owners don’t always have to grab a brush to change it up before listing. Sellers can tone down a strong color with a neutral counterpart, such as a calming rug or tranquil array of fresh greenery.
Myth #3: Never buy the biggest house on a street.
Reality check: Sometimes true
The largest house on the block is often the most expensive, which may affect its appraisal and make its price much higher than other homes in the same neighborhood on comparative analyses. Most buyers today are concerned about value when making an investment in a home, so they’ll appreciate a caveat about limiting their pool of future buyers by pricing themselves out of or above the local market.
Myth #4: Sellers should expect to earn back everything they invested in remodeling projects at resale time.
Reality check: False, but…
A quick check of the annual “Cost vs. Value” survey will demonstrate to sellers that it’s nearly impossible to get 100 percent of the money you put into a redo back when you sell. It pays to keep a house updated and in line with similarly priced homes in the community. Caution against upgrades are when a home owner plans to sell soon after making changes and when the market is flat or heading downward.
If you are going to do an expensive upgrade, such as remodeling the kitchen, do it soon after you buy and not just before you sell, so that you can enjoy the new upgrade for a few years.
Myth #5: If buyers don’t like an exterior, they’ll never go inside.
Reality check: Sometimes true
Without some curb appeal many buyers think, “why waste my time”. REALTORs prepare clients for the exterior ahead of time by asking buyers in advance what styles of houses they like and dislike, and even showing them images beforehand. If a house works otherwise—its layout, number of bedrooms and bathrooms, and maybe a backyard — realtors can find ways to remove or downplay features that may not appeal. Exterior changes may be as simple as adding landscaping that dresses up part of the offending façade, painting shutters and a door to focus attention.
However first impressions are very important, and the exterior and curb appeal create first impressions.
Myth #6: Listing the home at a higher price is good as it will leave room for negotiating
Reality check: False
In reality, all that a higher asking price will do is scare off prospective buyers. An elevated price could delay the sale of the home, leaving the property on the market for longer than it should be. A property that has been on the market for some time and has seen multiple price reductions will give buyers the wrong impression. They are likely to think that the home is not selling because it has some major defects.
A correctly priced home will be attractive to buyers and will sell for the best possible price, within the best possible time frame.
