Today, I want to talk about the top myths of real estate in a hot seller’s market.
1. All agents are the same. Some of you may have seen me discussing this myth on “Good Things Utah“. Imagine that you had $500,000 to invest in the stock market. Would you go and hire a stockbroker just because you knew them, or would you get out there, investigate, and find the absolute best stockbroker who will protect and increase your money?
Hiring a real estate is just like that. You need to hire the best real estate agent. On average, I get 3% to 4% more on the sale of a home than most other real estate agents, and there are a lot of great agents out there that you’ll want to interview.
2. I can list my home as For Sale By Owner and get the same results as an agent in this market. I don’t doubt that you can sell your home on your own in this seller’s market. However, we often see a For Sale By Owner property sell for less than a property in the same neighborhood that’s represented by an agent. Real estate agents are better able to capitalize on your home’s exposure to buyers. In this market, we’re also seeing a lot of homes sell above list price and above the appraised value. Most people don’t think it’s possible, but it is—especially if you work with an agent.
“If you overprice your home, it will sit on the market and go through multiple price reductions.”
3. Buyers only come out on the weekends. The hottest buyers are out there all the time. They are taking time off work and taking a whole day during the week to look at homes, so make sure that you open your home up to all buyers possible. Oftentimes, the weekend buyers can really just be looky-loos, which you don’t really want.
4. You can overprice the house and get the right buyer. Even in this market, there is still the idea of the fantasyland buyer who will overpay for your home. However, buyers really aren’t paying more than what everyone else will pay for your home. The value of your home is based on what the buyer and seller will agree upon. Look at where the market is. You may be able to go 2%, 3%, or 5% above recent sales, but if you overprice the home, it will sit on the market and go through a lot of price reductions.
5. You can take advantage of a property that’s gone through multiple price reductions. Sometimes people think, “Hey, this seller is desperate—I’ll be able to get a great deal.” In reality, the seller is just someone who didn’t know where the market was and is just adjusting down to try and find the market. Oftentimes, they’re not desperate sellers. In some cases, they may be the opposite—these sellers might get so stuck on their price that if they don’t get that price, they won’t sell at all.
I hope you found this information helpful. If you have any other questions about buying or selling in our current market, just give me a call or send me an email. I would be happy to help you!
