Selling your house is a complicated process that, when gone about in the wrong way, can potentially end with losing out on thousands of dollars on your final sale price. Many people have sold their home in the past and it’s likely that once you announce that you are thinking about selling, you will get hit with a tsunami of advice — some good, and some terrible. We want to share a few of the biggest myths we have heard from our sellers to help you avoid making similar mistakes. If you’re looking for a Sedona real estate agent that can help you get the most money possible for your home, call Bryan and Cindy Real Estate today.
Myth #1 — The Homeowner Gets to Set The Price of Their Home
While it may be true that the homeowner has the final say on what they are going to set their price at, there are several things that must be considered for setting your price if you actually want the house to sell. Factors to consider: the value of other homes in the neighborhood, school district, how updated the home is, structural integrity, and many others. A good real estate agent will help you find the highest price that will sell while still being competitive.
Myth #2 — Pricing Your Home Too High Leaves Room For Negotiation
Once you and your real estate agent have determined the best price for your home, you may hear people tell you to price it higher so that you will have room to negotiate. The problem with this is that if your home is priced too high, then you won’t get any offers, which means negotiations over price will never take place to begin with. Your Sedona real estate agent knows your market better than most and will always help you find the maximum amount you can price your home for to still get offers. This is one of the times when it is best to trust your agent.
Myth #3 — The Longer You Wait, the Better Offers You Will Receive
Over the years we have had sellers who get a great offer fairly soon after listing their house and instead of jumping on it before it disappears, they say, “Well if we got an offer like this so quickly, think of how much more we could get if we wait!” While this line of thinking may seem like common sense, reality is quite the opposite. At this point we like to tell our sellers to put themselves in the buyer’s shoes. If you are shopping for a home and you see a home that has been on the market for three months when similar homes are selling in weeks, your first thought will likely be, “There must be something wrong with this home…”
While it’s possible that you may get lucky and find a buyer willing to pay more later down the line, far too often we will see these sellers having to settle for a lower offer because they waited too long to move forward. If you get a good offer, you should almost always take it, no matter how soon after listing you receive the offer.
Myth #4 — A Real Estate Agent With Lower Commission Will Result in a Higher Net Profit
Some real estate agents will try to sell themselves on this idea, and while it seems like a logical conclusion to make, it’s often not true. Let’s do some quick basic math. Let’s say you meet with two Sedona real estate agents, Agent A is offering you their services for a 6% commission while Agent B is offering only 4%. If you were to sell your house for 500,000. Agent A would take home $30,000 while Agent B would only take $20,000. While it may seem like a no brainer to go with Agent B, it’s never quite this simple.
Typically, the more an agent is able to make on a house, the more time and resources they will be willing to commit to selling that house. This means that while Agent B may be cheaper, it’s likely that they will not be able to spend as much time finding the perfect buyer who is willing to spend the most on your house. In general, agents who charge lower commissions tend to have a “get in, get out” mentality. They don’t make as much per sale and so they have to compensate by doing more sales at lower prices. This also means that because they will be making a smaller percentage, they will be less motivated to advocate for you during negotiations.
It’s not always true that the real estate agent with the highest commission rate will get you the best deal. However, the more an agent is able to make off of a sale, the more likely they are to invest their time and resources into selling that home for the highest price possible while advocating for you in every way possible.
Myth #5 — The House Sells Itself!
This myth that homes don’t need to be prepared for a sale can easily cost the seller thousands of dollars. The first 3-4 weeks on the market are by far the most critical. By allowing your home to sit on the market for a month or longer without any offers can give your property a negative stigma that could be hard to get rid of.
This is why proper staging, cleaning, and performing certain repairs are crucial steps in the selling process. By meeting with your Sedona real estate agent, you can get a much better idea of what repairs and preparations will be worth your time and money. We work with buyers on a daily basis and we know what trends are “in” and how much extra buyers are willing to pay for things like granite countertops and other upgrades. We can tell you exactly what needs to be done to your home in order to get the best price possible for the cheapest cost.
Myth #6 — Selling a Home Without a Real Estate Agent Will Save Tons of Money
Theoretically, if you are able to sell your house without a real estate agent, you would be able to keep 100% of the final sale price. The keyword of this sentence is “if.” Gone are the days when a homeowner can just put a “For Sale” sign in their front lawn and expect the right people to see it. Nowadays, real estate agents have a variety of sophisticated tools at their disposal to be able to market your house to exactly the people who are looking for a home like yours to buy.
Another problem is that real estate is a very complicated field to play on. It is almost guaranteed that your buyer will have a Sedona real estate agent acting on their behalf, and if you don’t have a professional on your team, it’s very possible for that real estate agent to take advantage of your inexperience and even bully you into making concessions you are not comfortable making. That’s why it is so important to have your own real estate agent who is familiar with all the tricks of the trade to advocate on your behalf. You may end up losing a small portion of your sale price due to their commission, but this difference is likely much smaller than the difference in sale price your real estate agent will be able to get for you.
Myth #7 — Open Houses Sell Houses
This myth is an easy one to bust. The reality is that only around 2% of houses sell due to an open house. There’s nothing wrong with holding open houses, and it’s definitely possible that you could be a part of that 2%, however, holding an open house can be a very stressful process and there are more effective ways to market your house. Stick with a real estate agency who uses more effective marketing strategies than just trying to hold open houses every weekend.
Pick the Right Real Estate Agent
Now that you know a bit more about what to look out for when selling your house, it’s time to pick a Sedona real estate agent who can help you navigate these rocky shores. Bryan and Cindy Real Estate has been selling houses right here in Sedona for decades and we believe that honest hard work is what sells houses. We have the tools and resources to get your house in front of as many sets of eyeballs as possible and we are expert negotiators. Stick with a real estate agency you can trust, and contact us today!