REAL ESTATE TOPICS...Five myths about selling a home

By Marjorie Youngren

The more accurately you price your home, the more buyers will see the value and the more likely you will receive multiple offers.

Real estate is fraught with misunderstanding. Here are the top five seller misconceptions:

1. Always have a buffer when setting a listing price for your home so you will have negotiating room.

False, especially in a busy market. The more accurately you price your home, the more buyers will see the value and the more likely you will receive multiple offers. If your price is too high, it might be out of your potential buyers’ price range. They won’t even see it. The buffer will actually work against you.

2. The agent who suggests the highest list price is the best.

Wrong. This agent may be suggesting a price that he or she thinks you want to hear. It’s called “Buying the Listing.” Interview a few agents. Listen carefully to why they suggested their price. Look at the comparable listings they show you. The listing price should be only one of the criteria in your decision to hire, and not the most important either, as it can always be adjusted.

Go with your gut. If only one agent suggests a high price, and the others are clustered around a different price point, perhaps he or she is not being honest with you and just trying to get the listing. Similarly, if an agent suggests a commission cut, he or she may just be trying to get the listing. I always tell my sellers that if I can’t negotiate my own commission, how do you expect me to negotiate well on your behalf?

3. Spring is the best time to sell a home.

Not necessarily. Although spring is the season when everything looks best, it is also the time of year when more people put their homes on the market. As a seller, that’s when you have much more competition. That said, the colder months can be the perfect time to capture serious buyers. But have heart; pent-up demand from years of low inventory means a large buyer pool year round in most markets. If you want to convey that spring-time feel to buyers, take pictures of your home in the nice weather, with the pool open and flowers blooming, then post them online when you are ready to sell.

4. Home improvements always boost your sale price.

Sometimes. For the most part, homeowners make improvements for their own enjoyment or because it makes sense to do so, not always for resale. Just because you bought a new furnace or finished off your playroom does not mean you will get back the money you spent. Every investment has an estimated return, and none are the actual price paid for the project. Some have a larger return than others.

5. The highest offer is the best one.

Not always. Terms and contingencies are just as important as price. Always consider the buyer’s financial strength. If the buyer is putting only 5 percent down and making a high offer, you could run into a problem if the appraisal isn’t high enough. If another buyer offers less but is putting down 30 percent, he or she is a stronger buyer.

Also, make sure the buyer’s dates align with yours. Will the closing date work for you? Is the buyer asking for an inordinate amount of time for an inspection? Does the buyer have a house to sell? Is it under contract? These contingencies can make a high offer less attractive. Be smart before you accept.