There are four persistent real estate myths circulating in the market that I would like to address and dispel today.
1. Weekends bring out the most serious buyers. You’d think that with many people being off work over the weekend and being free to drive around and go to open houses that weekends would be busy for real estate agents, but it’s not the case. In fact, the most serious buyers come out during the weekdays. Most house showings occur around lunchtime or in the evenings, and offers are usually made on Tuesday or Thursday nights.
2. It’s better to price your home on the high side. Sellers think that by pricing over market value, they can negotiate down and still come out with a price over market value. The truth is that there are three ways that you can price a home for sale:
a. Above market value. Sellers who price their homes well above market value usually end up having to reduce their price more than they intended to and often end up injuring their chances for a high sale.
b. At market value. This is based on what comparable homes have sold for in the past. Pricing your home at market value will draw out the most buyers.
c. Below market value. This can be done to create a frenzy among buyers and incite a bidding war.
3. The longer a home is on the market, the more negotiable the deal is. While typically price is what determines how long a home stays on the market, the truth is that there are many factors that can affect a home’s market duration:
a. Crime in the neighbourhood.
b. The home’s layout.
c. The home’s condition.
d. Market conditions.
4. Multiple price reductions mean the seller is desperate to sell. There are actually a few reasons why a seller might reduce the price, such as if the seller doesn’t want to negotiate. They want to entice a buyer to purchase their home at the price they’re establishing, so sometimes you’ll see sellers reducing their price every other week. A trick I like to use is to reduce the price a little each week since that new price will be sent out to everyone who is set up on our automatic emails.
If you have any questions about these or other real estate myths, about the market, or about buying or selling a home, please reach out to us.