Have you noticed that since you put the word out that you’re thinking of selling your home, everyone becomes a real estate expert? From your favorite aunt (who last sold a home in 1973) to your next-door neighbor, everyone has advice. Their experiences can be interesting and they mean well but they can’t replace the advice of a trained home selling professional.
Read on for some of the biggest home selling myths perpetrated by these “experts,” and watch us bust them!
1. The online estimates of my home’s value are accurate
Nothing could be further from the truth. In fact, former Zillow CEO Spencer Rascoff once called their Zestimates merely “a good starting point,” according to the Los Angeles Times’ Kenneth R. Harney. Rascoff went on to admit that Zestimates are off by about 8 percent, on average, but in some parts of the country the site’s error rate is drastically higher.
From my experience online estimates are more reliable in tract neighborhoods built within the past 25 years where there is a high level of consistency. In our area houses have been renovated, upgraded and added to and that information doesn’t always register in the computer’s algorithm.
I recently had a client who was watching the online value of her parents’ home she was selling and feeling the weekly changes to value indicated the market conditions. Online values change as each sale of a “similar” home impacts the online calculation. The sale of a recently remodelled home can raise your value even though it is likely the market hasn’t changed in the last week.
The only reliable method of determining a home’s true market value is by having an appraiser or experienced Realtor evaluate the market statistics and comps. Whether you are deciding on listing price or which offer to accept it is important to listen to your Realtor.
And, no, your home is not worth what you need to get out of it.
2. When pricing your home, price it high to start with
There’s a strange dichotomy in the real estate industry when it comes to overpricing a home: the seller very often ends up netting a lower-than-hoped-for price.
Sellers that overprice their homes aren’t fooling anyone. Buyers and their agents are fully aware of the price points in various neighborhoods and won’t waste their time on a home that is obviously overpriced. What happens to these homes? They don’t sell as quickly, the listing becomes “stale,” and by the time the seller becomes realistic it is, sadly, too late. Or even worse the house doesn’t appraise for that value during Escrow.
Pricing a home significantly lower than the market is not a great strategy either. You will end up with a large amount of unqualified Buyers traipsing through your home unnecessarily. And I think it is bad form to get potential Buyers’ hopes up unfairly. 
Pricing a home appropriately for the market at the outset is critical to getting the home sold for the amount you want.
3. You don’t need a real estate agent to help you sell your home
This is partially true – you may be able to sell your home on your own. But, why would you want to?
If you think you’ll save money, think again. In 2020, the average sales price nationwide for a for-sale-by-owner (FSBO) home was $217,900, according to the National Association of Realtors. The average sales price for a home sold with a real estate agent’s assistance sold for $242,300. That’s $24,400 more than a home sold by owner. The 11% average difference in sales price will more than cover the sales commissions. In our market the 5% difference can be $50,000 or more.
Additionally, selling a home requires marketing skills, a marketing budget and time. It also requires an understanding of contracts, the ability to negotiate and a knowledge of required Seller disclosures. So the added risk and your time – how much is that worth to you?
Old myths die hard, but I’m doing my best to help them along. Feel free to reach out to me with any questions about selling your home.
For a free consultation about selling your family home in Woodland Hills, Calabasas, West Hills or the San Fernando Valley
Call Janey Bishop (818)570-1144 email [email protected]
or watch my videos at https://janeybishop.video/Empty-Nest-Downsizing-Playlist
I offer special TLC to families in Probate or Divorce and Seniors.
Senior Real Estate Specialist Probate Certified Real Estate Collaboration Specialist – Divorce
SRES, CPRES, RCSD, CDRE
