6 Misconceptions Regarding Value
Misconception #1. Repair costs are recouped in the sale price.
Unfortunately this is not always the case. The sale price of your home primarily hinges on your current local market. Some repairs or home improvement efforts will add to the value of your home and you will see a return on the investment. Examples of this might (but don’t always) include: adding granite counter tops or finishing an additional bedroom or bathroom. Some improvements are cosmetic in nature, and might add to the aesthetic of your home as during showings and open houses, but will not necessarily increase the value of your home. Save yourself the time and money of another home improvement project by contacting a Realtor you trust who will walk you through your home and help you to decide which improvements you can make that will actually improve your home’s value. If you’re local and looking to sell, contact me and I can easily let you know the value of your home as well as what, if any, improvements can be done to increase your sale price.
Misconception #2. You get more for your property if you "pad" the price with bargaining room.
The market in West Michigan is undeniably hot right now. This fact might tempt sellers to list their home at a higher than market value price, allowing “room” to lower it or negotiate. However, statistics show that if you price your house at market value, you will sell for more money than if you list higher and slowly lower the price. If you overprice your home, you put the initial wave of interest in your house at risk because buyers are not going to pay more for a home than it is worth. If you miss that initial surge of interest, your house may end up on the market longer than 30 days. In Michigan, that is a long time for a home to be for sale. This will lead to buyers becoming wary of your home and wondering, “Why hasn’t it sold yet?” Or “what is wrong with it?”. This often leads to ‘low ball’ offers and you will be left fighting your way back up to an acceptable price.
Misconception #3. Buyers like to bargain or negotiate on the price
Every buyer is different. Some buyers won't even bother looking at a property if it is priced too high. Pricing your home correctly and exposing it to the maximum number of buyers is part of the strategy for getting the highest price possible in the shortest amount of time.
Misconception #4. Swimming pools and hot tubs always increase property value
Nope. Sadly, lenders assign very little, if any, value to pools and hot tubs. On top of that, some buyers are hesitant to buy homes with pools due to safety and maintenance cost concerns.
Misconception #5. Landscaping extras increase property value
Again, they won't necessarily increase the dollar value of your home, but a nicely landscaped yard can increase curb appeal. That, in turn, increases the attractiveness and desirability of a house which can affect the price you are able to sell for. Buyers can be emotional and when I am working as a listing agent, if I can invoke emotion in the buyers, I can often sell a house for slightly more.
Misconception #6. Waiting for more offers will get the seller a higher offer
There are many factors that will determine the highest offer you can get when selling your house. There are many times when a higher offer will never come. However, with every offer, consult with your listing agent, and don't be afraid to ask questions. It is my job to sell your house for the highest amount I can and it is also my job to help you understand the current market and equip you to make the best decision possible.