November 4, 2018 | Fernando Sandoval

Thanks to those that participated in our Facebook live broadcast Thursday 11/8/18 at 5:30PM

The recorded broadcast is the video above, we will transcribe some of the key points here:

We decided to do this broadcast because we know what sellers want: the most money possible for their home in the shortest amount of time with the least amount of hassle and frustration. However, sellers who do not posses experience in selling a home or the industry knowledge in the market, tend to hold on to beliefs that, on the surface, seem to make sense but in reality are dead wrong. Because it is their home, some of these sellers will insist that the Real Estate Agent representing them follow a strategy in line with this wrongful beliefs which ends up either hurting the seller in the long run or creating animosity and conflict between the seller and the agent.

In this video we break down each seller belief and then discuss what the buyer actually thinks and how these two ideas can hurt or help the sellers bottom line.

Most Real Estate Professionals agree that holding on to one or more of these beliefs can be the chief reason why many sellers do not end up getting what they could or should get from the sale of their home. The first advice we can offer is to find a Real Estate Professional who knows the market, has experience selling many homes and is not afraid to tell you the truth. You want to steer away from those who will sugar coat the facts and only tell you what you want to hear.

Myth #1: The longer the house sits on the market the better the offers!

Truth: Buyers see a home that has been on the market a long time as either having something wrong with the house, because "why hasn't it sold by now?" or as an opportunity to bid much lower on the house thinking the sellers are starting to get desperate. Neither reaction by the buyer in this case is to the benefit of the seller. Usually the first offers are the best offers. Right, wrong or indifferent the first question a buyer asks their agent is how long has this house been on the market?

Myth #2: We got tons of offers the first week, we must have under priced the home and left money on the table.

Truth: You want multiple offers on your home and right away, if you can have two bidders fighting over your home you are likely to negotiate a great deal. Some buyers have been looking for months and have not pulled the trigger for one reason or another. Your well priced home comes on the market and it gets exposure to hundreds if not thousands of buyers looking for a home like yours. The multiple offers is an indication that what you have to offer for the price is right for the buyers.

Myth #3: The bigger the marketing budget the higher the offers on the house

Truth: Most of the marketing for a home is the price. Sure spending large sums of money on marketing gets lots of attention and even showings for the home but once the buyer is in the home it is up to the seller to have the home priced right before the buyer makes the decision to pull their checkbook out of their pocket and make an offer. The analogy is that marketing is leading the horse to water but it can't force the horse to drink (make an offer)

Myth #4: We just need to wait for the right buyer to come along

Truth: Buyers are savvy and have access to lots of online information. They are also not as emotionally invested in the home as the seller may be. So buyers know what homes are worth and are not willing to pay more than it's worth because of the lack of emotional involvement. Cash buyers want large discounts because they have cash and buyers with financing, while they are willing to pay more than cash buyers, will still need approval from their bank for the loan which means the property will need to appraise for the sales price.

Myth #5: There needs to be plenty of negotiation room in our price

Truth: If your home is worth $350,000 and you want $50,0000 in negotiating room the buyers who are approved for up to $375,000 will never see your home and the buyers approved to $400,000 and up realize that their money can buy them a better, larger, newer, nicer renovated home. Overpricing a home just to have negotiation room actually limits the pool of buyers and thus the house sits on the market until the price is dropped to where it needs to be which, by then, the house has been on the market too long, people are wondering what is wrong with the house and now the price will actually need to be LOWER, such as $335-340,000 just to compete with fresh, well priced, new listings on the market. This belief creates a recipe for losing money.

Myth #6: The Zestimate says it's worth more

Truth: Zillow can be as much as 40% off on the value of your home and as much as 4-6 months behind knowing where the market is going! the automated estimates are just that. To accurately know what a home is worth a person with knowledge of the market needs to look at the inside of the home. The condition of the home, whether it's cluttered or not, updated or not, vacant or occupied, even the wall color choices can have an impact on buyers perception of value, which is how the price is determined. How could an automated software program know to make these important adjustments? The answer is it cannot.

Questions by the audience:

Seller wants to use a home that sold a long time ago or a long distance away to use as a comparable of value to their home. The majority of value in a home is determined by location and size then adjusted for improvements, conditions and other factors. You should not use comparable properties more than 6 months and more than a mile away from the home

The value of the home decreases the longer the home has been on the market because of the perception of value by the buyer.

Are home values different at different times of the year? not in Florida, while there is a snowbird season and some values can fluctuate based on the use, i.e. a "beach condo" most values in the area will not be affected by the time of the year. Consult with us for more information.

Is it wise to price a house lower than its value to create an auction effect? yes, it is a good strategy because a bidding war can cause your sales price to actually go back up.

Fernando Sandoval and the rest of The Saltwater Ventures Team at RE/MAX All Star are always available to answer your questions in English or Español.

Text or call 727.344.9139 or send us an email by filling out the contact us form on our website. We look forward to working with you.

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Author: Fernando Sandoval

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