5 Real Estate Myths That London Ontario Home Sellers Should Ignore
5 Real Estate Myths That London Ontario Home Sellers Should Ignore
There’s a lot of free advice out there for home sellers, that’s why it’s free or advice from well-meaning friends and relatives, while valid, may be outdated in today’s market. Some of this is tongue-in-cheek, and perhaps too blunt but hey, hopefully, you’ll remember this when it comes time to sell your house or condo in London Ontario.
Myth #1:
A low fee brokerage can do just as well and save me money.
Truth:
Successfully marketing a house, an apartment or townhouse condo in our competitive marketplace takes skill and resources. The majority of London Ontario, real estate brokerages include all promotional costs, such as photos, video tours, floor plans, brochures, printing, signs, marketing & your MLS posting is on our local real estate board, not some city 100’s of KMS away!
How will a discount broker offer such a complete marketing campaign? Does the discount broker have a team to tend to your specific needs personally?
How soon do they respond to buyers and their Realtor wanting to see your home? How soon do they let you know? And who?
Some discount brokerages will only do offers and conditions by email or text. Will they come to your house and talk with you, discuss the offer, and make suggestions? Will they allow the buyer’s real estate representative to present the offer to you and the discount broker at your house?
What is the discount brokerage’s cancellation fee? (Do they even have one, or are you locked in for 90 to 180 days?)
Do they have a proven track record of success, or are they just using the lower commission to try to win your business? Do they have the expertise to guide you through the problems that often develop during the closing process?
Remember that you only pay a brokerage fee when your property sells. Interestingly, a discount broker does not have a dominant market share in any major city in Canada or the US.
Myth #2:
I should select the Realtor that suggests the highest list price.
Truth:
This is the oldest trick in real estate sales: Tell the seller what they want to hear, compliment the home, and agree to list it at an unrealistically high price to get the listing. Then, after you have the listing for a few weeks, start telling the seller that they need to reduce the price.
Sometimes brutal truth hurts, but you should expect the truth in the real world. The decisions of which Realtor to list with and what price to ask are two completely different decisions.
Consumer Reports, July 2021
“Expect the agent to suggest a price range, but don’t let that frame you in. Be aware that some devious agents will, at first, suggest a very attractive price. Then, after they have the listing and the house hasn’t sold, they’ll come back with a pitch to lower the price.”
Never select a Realtor based on the price they suggest; instead, select your Realtor based on their CREDENTIALS and MARKETING PLAN, and then decide on price together!
Myth# 3:
Property condition is not that important to buyers.
Truth:
Wrong! A property in superior condition will sell faster and for a higher price than a home in average condition. Buyers purchase the most appealing properties, and a home in excellent condition with a reasonable asking price always tops the list. Sellers that invest in necessary repairs and keep their homes clean and fresh always reap the rewards!
Myth# 4:
Empty homes are more challenging to sell than occupied homes.
Truth:
Vacant homes often sell faster for several reasons, but it depends on the condition. A vacant home that is clean, in good repair, and priced fairly will sometimes sell fast because the rooms will appear larger without furniture and clutter, buyers can easily visualize their furnishings in the home, and most Realtors prefer to show vacant homes because they can go anytime without worrying about making appointments, etc.
Myth# 5:
Pricing a home for sale is a mysterious process.
Truth:
Your home will sell for what the market will bear. To determine the range of value for your home, it takes a solid knowledge of the market. And because every home is unique, your home will sell more near the high or low end of the range depending on its specific attributes like location and condition.
It is not simple, but it isn’t mysterious either.
FACT…
In today’s market, buyers are increasingly savvy. On average, buyers look at 14 homes before making an offer, and that means 13 other homes are competing against yours.
What that means to you is:
Your home will sell at the highest profit and in the quickest amount of time when all the ingredients are combined perfectly. If only one ingredient is left out of the formula or is out of proportion to the others.
Price is the #1most important factor in the sale of your home. The consequences of making the wrong decision are painful. If you price your home too low, you give away thousands of dollars that could have been in your pocket.
Price it too high, and your home will sit unsold for weeks, developing the reputation of a problem property (everyone will think that there is something wrong with it).
Failure to understand market conditions and correctly price your home can cost you thousands of dollars and cause your home not to sell, fouling up all of your plans. Setting the correct asking price for your home is the single most significant factor determining the success or failure of your home sale.
You can’t afford any “guesswork” in this critical step!
Pricing Guidelines
What you paid for your property does not affect its value.
The amount of money you need to get out of the sale of your property does not affect its value.
What you think it should be worth does not affect value.
What another real estate agent says your property is worth does not affect its value.
An appraisal does not always indicate what your property is worth on the open market.
The value of your property is determined by what a ready, willing, and able buyer will pay for it in the open market, which will be based upon the value of other recent closed sales.