Let's clear up some common myths about selling a property.
There are endless stories about a friend of a friend who put their house on the market and did this or that. Conversations down the pub with unsolicited advice can knock you off course and make you question if you are doing the right thing. Don't be deterred by these stories; this article will dispel the myths around selling your home.
People like to help; it is human nature to want to assist and advise, particularly when we all know that moving house can be stressful.
As soon as you tell anyone that you are thinking of selling your home, you'll be inundated with tales of how someone did this thing once, and it cost them loads of money or advice on how if you do X and Y, you'll definitely sell for more. All unsolicited information that, until you mentioned it, you hadn't even considered. Tips on how to game the system and guarantee a sale, or ideas on how to price your property for the most money.
But, sometimes, it's better if people just stay quiet. These unsolicited titbits likely came from someone who probably hasn't sold a house for years, and really, they are simply retelling tales that they heard once. And sadly, much of this advice is entirely wrong.
Before you were bombarded with this "advice", you had a plan; you knew what you were doing. But now, you're confused, spiralling, and have so many things that you should consider that you're no longer sure what to do for the best. But don't panic; we've busted these common myths around selling your home so you can be confident in your plan and move forward without worry.
- Put your price a bit higher so that you can negotiate downwards. A common thought is that, because all buyers will try to make offers on your house, you should add a bit of a mark-up to your advertised price, factoring in a bit of wiggle room. This is actually counter-productive because if a buyer thinks the initial advertised price is too high, they might not even come and view it, meaning you could have lost a sale.
- If you get a quick offer, you've underpriced it. If priced correctly, every property should sell and not take forever. But, it's often thought that the price is too low if an offer comes in very quickly after launching to the market. This is not the case. A proactive buyer will look online for a property frequently; they'll be on email lists and signed up for alerts. If you get an offer quickly, it's a sign that you've nailed the pricing strategy, and it was a case of right buyer, right timing.
- The value is always higher if you've renovated. The value of a property is estimated based on the property market at the time and comparable properties that have sold recently. It will also take into account the saleability of the property. How likely is it that the target buyer for the property will like the interior, decor, location, etc. If the property has been fully renovated but in a style that won't appeal to the target buyer, then it could have been wasted money.
- Square footage = value, so extend to get more money. This is not always the case. Yes, the size of the property is included in the valuation, but you might not increase the value by enough to cover the cost of the work. It depends entirely on the market conditions and the amount you spend on the extension.
- Estate agents set the price of your property. This is not true. It is your property, and you ultimately set the price you would like to both market for and sell for when negotiating offers. However, estate agents are professionals; you're hiring them for their expertise and advice. It wouldn't make sense to disregard their opinion of the market and make up a price you want to sell for. If your valuations are around£500k, it would be crazy to just advertise the property for £750k. But, if there is a little movement and variation in the estimates you received, you can set the marketing price for your property.
- Low-commission agents will save you money. This is, unfortunately, a false economy. Estate agents are companies, businesses. They're not offering a charitable service. As such, there are bills to pay, overheads, salaries, and profits to be made. If you employ an estate agent to sell your home, you expect to receive a certain level of service, and that service must be paid for. Of course, there are cheap, online options where you can advertise your home, but how much effort can they put in to sell your home if you're only paying them a few hundred pounds? This bargain basement option is nothing more than a way to get your home listed on Rightmove. There is no service available to you because you aren't paying enough for it. There'd be no way these online agencies could survive if they weren't working for the masses. They're all about the volume; they need thousands upon thousands of properties on their books because the fees are low. A traditional estate agent simply wouldn't be able to survive under these conditions. A DIY option to get your home listed online is absolutely not the best way to sell your property for the highest price.
- Shouldn't try to sell until Spring. The property market has certain peaks and troughs throughout the year, but once upon a time, it was believed that if you wanted to sell your home, you should not list it on the market until the end of March. This is entirely untrue, and September and January are often bumper months for sales.
- You don't need a valuation; just use the online price. This is such a damaging view. The online valuation price for any property is a very vague guideline, with a likely 60% accuracy level. It takes the price you paid for the property and the year you bought it and pushes it through an algorithm to assess the potential value now. It isn't possible to consider the condition or presentation of the property, whether you have improved it since you bought it. You could have built a double-height extension, adding 3 more bedrooms, and the algorithm wouldn't know. Online valuations are excellent if you are in the very early stages of considering selling your home to give you a ballpark figure. Still, there is no substitute for a proper, in-person valuation with an expert property valuer to accurately represent the market and how much your property could sell for.
The average person only moves a handful of times in their life, so it makes sense that there is confusion and a certain amount of trepidation when embarking on a move. However, estate agents deal with property sales daily, so we are best positioned to help you navigate the process without jeopardising your money or your sanity.
To find out how we can help you sell your house and find your dream home, get in touch with our team today.