Pearson & Associates Real Estate Team
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SELLING MISCONCEPTIONS

If you don’t want to make repairs, lower your price

Not a great idea. A house that doesn’t look its best may attract few or no offers. We have numbers we base our showing traffic off of. If you don’t have a certain number of buyers within 10 days, your home is most likely over-priced…BUT if there’s a lot of traffic and no offers, there’s usually an issue with the home. It’s best to eliminate any issues with the condition of the home, by making those repairs. Consider repairs with the quickest payback – such as a leaky roof, or broken sprinkling system.

On the flip-side, if your carpets have been destroyed, or your home needs some cosmetic updating, it’s sometimes better to offer allowances to be escrowed at closing, so the buyer can pick THEIR preference of carpet, counter tops, paint, etc. We can discuss all of this with you. It creates a lump in our throat when we know the seller has spent thousands of dollars on a new rainbow-colored granite counter top THEY loved, just to learn the buyer hates it and will be ripping it out once they close. Don’t waste the money! Your preference is not necessarily theirs.

If a house sells in a few days, it was under-priced

Not necessarily, especially in this market! A quick sale may mean the house was priced correctly for the market and that buyers did their homework. One stance we always maintain when listing a property: if it’s not priced correctly out of the starting gate, it could hurt the entire listing period. Over-priced listings create a stigma with the public, “Are the sellers really motivated?” or “Pending an appraisal issue, did we just waste our time and money on a dead-end road?” Pricing your home correctly is imperative to getting a solid buyer.

A “discount” broker can do just as well and save you money

Odds are against you on this one. Successfully marketing a property takes skill and resources. All of the marketing costs such as photos, brochures, printing, signs, advertisements, MLS fees, direct mail, etc. are all paid for by your agent. Having worked with many discount brokers representing the opposing party in our transactions, we can assure you, there’s a reason why “you pay for what you get.” We don’t believe in slandering our Realtor® network, but we will attest that most of those that discount their fees, are difficult to reach, have delayed responses, and make the entire transaction a much more difficult process due to lack of communication or knowledge. Remember that you only actually pay a commission if and when your property sells. Many sellers have found that their commission with a discount broker was really zero, because their property never sold!

There’s a huge misconception circulating around, that a standard listing agent throws a For Sale sign up in a front yard and collects a very fast and very large commission…the house sells itself. If you know any of these agents successfully executing this sly technique, we’d like to meet them!

Listing your home for thousands of dollars more than it’s worth, will give you room to negotiate lower

Educated, market-savvy sellers will list their home at true market value and will have already accounted for repairs. We are going to provide you with all the comparables in your area, sold in the past 90 days (as well as those Under Contract and Active – to indicate market movement). We will assess the differences between the homes, and ask you one question: “As a buyer, looking at these other properties, what would YOU pay for your home?”

If two identical homes are listed for different prices the potential buyer is going to ask “Why?” Obviously, if there are significant improvements between the two homes, then there’s your answer! A buyer’s agent is going to pull all the same comparables we use to assess your home’s value, before writing an offer for their client. If you are WAY out of the ballpark on price, it makes our job difficult to justify both to the potential buyer and their agent, (as well as the appraiser), your higher asking price.

You will be able to sell your home for a lot more money because of the upgrades and improvements

You added three, $7k generators to your custom built $30k workshop in your backyard, or spent $10k on one-of-a-kind Brazilian Cherry wood floors throughout your home. I’m sure you’ve enjoyed your selections and the money has been well-spent in your mind, but that mindset more than likely won’t transfer to a prospective buyer. You’ve definitely added more value or buyer incentive for purchasing your home over the home down the street (with a standard 2-car garage and laminate floors), but more than likely, you’re not getting every dollar spent back in your pocket. Some improvements will yield better results.

For example: you decide to get crafty and paint your home yourself for $400. You will probably increase your chances of selling the home, and thus recoup the $400 cost. However, if you spend an extra $3000 having the home framed with 2×6′s instead of 2×4′s, you may have increased the resale value of the home (though probably not as much as you paid for it). If the homes in your neighborhood average 2,300 square feet and the sales range from $75-$80 per square foot, you cannot assume people will pay $95 per square foot just because your home has certain improvements.

Regardless of the improvements you have made, your home will still be marketable for what buyers are willing to pay in that neighborhood, and many buyers are looking for “the home” that fits their specific needs. Having seen almost every condition of a property known to mankind, we can assure you - there’s a buyer for every home out there.