There are a lot of misconceptions when it comes to real estate. Some of the basic myths and fables can influence buyers and sellers for no good reason. The job of a real estate agent is to educate clients and help them understand what is typical of a real estate transaction and what is just plain wrong. Many homeowners still don’t know what they can do to help the process go more smoothly, from updating a property to welcoming potential buyers and so on.
This is why nine members of Forbes Real Estate Consulting share below some of the things that are constantly surprised by home sellers, that they wish there were more common knowledge. Here’s what they had to say:
All photos courtesy of the members of the Forbes Council.
1. Costs of updating the house
Home improvement has become almost a by-product of the home buying process. Most people are intimidated by the concept of remodeling, given the lack of visibility into costs, the difficulty of hiring the right people and the time and disruption it will cause. This issue can be a headache for many buyers, and I think having more transparency in this process can help. – Raf howery, Kukun and PropenCity
2. Everyone has the cutest baby
A homeowner’s perception of the value of their home is almost always skewed. It’s no shock – after all, everyone’s baby is the cutest, and according to Facebook everyone has the perfect life. So why shouldn’t their house be worth more than any other house that looks like it? Actual value is based on market forces: supply and demand. What you spent, how you decorated or what you need to clean has nothing to do with it. – Thomas mccormack, Real Estate Resources
3. This sentimental feeling
The sellers who have lived in the house for many years develop a sentimental attachment. As a result, they often underestimate the need and cost of repairs. This can cause them to have a price expectation much higher than the actual value of the house. Sellers often have to learn that it is the market that determines the best price for the property – not sentimental opinions or feelings. – Jeremy Brandt, We buy houses®
4. County valuation district value
Most sellers seem to be amazed when I discover their home on the County Assessment District website and see a different square footage than the seller remembered when they bought their home. A selling price is determined by multiplying the area sold by the price per square foot, so having an accurate square footage can just put more money in a seller’s pocket! – Angela Yaun, Day Realty Group
5. The riddle of the condo
It’s amazing how many buyers and sellers find there are problems financing the condo they want to buy or sell. Not all condo complexes are created or maintained the same. Miss an item on a compliant loan checklist, and that’s it. Most of the offers are dead. Alternative financing is expensive and not always available. Agents and consumers need to understand: condos are different. – Kevin hawkins, WAV Group, Inc.
6. Impact of staging and renovation projects
Many sellers do not want their home to be professionally staged; they would rather sell for less and stay in the market longer than make a small initial investment. If your house is cluttered, has too many cheaper or outdated accessories, etc., it will be less attractive to buyers. Sellers should be prepared to view the expense of preparing their home as an investment, not an expense. – Brion Crum, Caliber: The Wealth Development Company
7. When to start preparing for the sale
Most people planning an upcoming sale start the process of meeting with agents, setting the list price, figuring out what to do to prepare their home for sale, and then bringing in contractors too late. and work to prepare it for sale. You always want to start the process three months in advance so that you have plenty of time to do everything. If you don’t prepare early, you’re already late. – Allan Rankin, Re / Max Royal Properties Realty Ltd. Brokerage
8. Home inspection, as soon as possible
I advise my sellers to purchase a pre-registration inspection and make repairs in advance. Here’s why: The worst-case scenario is accepting a price, only to find out after an expensive repair to perform, or even be caught off guard by an unknown defect and put the buyer on the back foot. Provide inspection and proof of repair to a potential buyer. Often times, they will skip another inspection altogether. – Beverly serral, Beverly Serral’s signatures
9. Open houses don’t sell your house
Many sellers place too much emphasis on the volume of traffic generated by open houses. We need to make them understand that the most qualified traffic to their homes tends to be the buyers who come outside of open houses with their agents. Open houses tend to attract neighbors and prying eyes. Traffic outside of open houses tends to be serious buyers who liked what they saw online and who are pre-approved. – Brad Le, Real Estate Climbing
