A property sales transaction can be a complex process, especially for buyers and sellers who have never been through it before. These days there is a world of information at our fingertips, but not everything we see online is true. As a result, there are some home-selling myths that have become commonplace in the property market.
According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, the first widely held myth is that the selling price is determined by sellers. While it is the seller who decides whether they agree to the selling price, Goslett explains that there are other factors that come into play, such as the property’s location, size, condition, and the demand for that market.
“Buyers in the market will have a large influence on the selling price of a property. If buyers do not perceive the home to be priced at fair market value, they will not be interested in purchasing it. If the home is in demand, it will fetch a higher price than if it is not. The initial asking price of the home can vary greatly from the actual selling price. Real estate professionals usually have a firm grasp on-demand in their areas and can offer crucial advice to sellers who are deciding on what price to initially list their home,” Goslett explains.
The next widely held misconception is that overpricing leaves room to negotiate. Instead of leaving room for negotiation, Goslett warns that overpricing often drives buyers away. “Inflating the home’s price will alienate buyer pools, in that buyers who could afford the home at its true market value will overlook it. Equally, those who can afford the inflated price will soon realise that the home does not compare to others in the same price bracket. The home could stagnate and sell for far less than what it may have sold for if listed at the correct price from the start,” he states.
The last and often most crucial mistake sellers make is believing that all renovations and home improvements pay for themselves. While certain renovations and home improvements will increase the home’s value, Goslett warns that property values in the area might not allow the seller to recoup all the money they have invested in the project when they later decide to sell. “Before deciding on any project, it is best to get expert opinions on what should be fixed or changed and what kind of return can be expected as a result,” he suggests.
Especially for first-time sellers, a real estate professional’s guidance can end up saving sellers money, time, and stress. Working with a reputable agent is the best way to safeguard against falling victim to any other misconceptions around the selling process.