Common Myths When Listing a Home

Spring is sort of in the air and with spring typically comes the hottest time of the year to sell your home! As REALTORS® we see all types of different situations when it comes to getting your home ready to make its debut on the market, and of course when you go to list your home everyone seems to have an opinion about who to work with, what your home is worth, and much more. No fear! We are here to debunk some common misconceptions when listing your home.

Myth: Get in touch with a REALTOR® a week or two before listing your home.

Fact: This is actually the exact opposite of what we recommend doing, but we do understand sometimes you have to move quickly! If you aren’t under any extreme time constraints, our advice is to get in touch with your agent as soon as you even have an inkling about listing your home. People tend to want to tackle things themselves but getting in touch with your agent in advance can help you make the most informed decisions on which projects to tackle, your overall timeline, and more! It also allows you ample time to plan and prep your home - the majority of the “work” when listing a home is prior to the home going live on the market!

Myth: Major kitchen and bathroom renovations are worth it.

Fact: While this can be true in some cases, most of the time just some simple refreshes will get you the most return on your investment. A good deep clean of your kitchen, new hardware, and some fresh paint can go a long way! Then when the next homeowner moves in they can keep it, or completely renovate it to their liking.

Myth: Home values listed online are accurate.

Fact: There are multiple ways to value real estate (we will get into those in a moment!), but that Zestimate you see online is not an accurate representation of your home’s true market value. 

Let’s break down the types of approaches when it comes to valuing homes: 

There is what’s called an automated valuation model (AVM) - think Zestimate! These are math-based models combined with a comparison element, but often lack critical information about the specific condition of a home.

Next, there is the assessed value of your home. This is a yearly estimation of your home's worth, determined by your tax district's municipal property assessor on a broad scale involving the other homes in your neighborhood.

Then, there is the appraisal value of your home. A bank appraisal determines the home's value to ensure that the price reflects the home's condition, age, location, and certain features. They help banks and lenders avoid loaning more money to the borrower than the house is worth.

And lastly there is the market value of your home. Market value refers to the actual value of your property when placed for sale on the open market. It's determined by buyers and defined as the amount they are willing to pay for purchasing the home.

Myth: Setting a higher listing price leaves room for negotiation

Fact: Overpricing your home may actually lead to a lower sale price in the end and usually just hurts the seller in the long run. In fact, even in this competitive market , many buyers may not even consider looking at a home that is substantially overpriced. Pricing your home competitively and reasonably is typically a strong strategy to attract more buyers.

In the end, even in a strong seller’s market, selling a home is no easy task. We recommend working with an agent you trust, feel comfortable with, and know will put your wants/needs at the forefront. It’s a complex process that involves a lot of moving parts - so get in touch with a REALTOR® early on to get a plan in place and help ease the stress!