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Don’t be fooled by 3 Myths of buying and selling a home!!
May 6th, 2013 12:17 PM

Considering today’s market, one cannot rely on the methods that were effective before.  This is a living, breathing, and ever changing industry, especially in its recovery stages.  So beware of your parents,’ or friends’ advice if they haven’t sold or bought anything in the last 2 years to avoid these three main real estate misconceptions.

The 1st misconception is that spring is the best time to put your house on the market or go looking to purchase.  If you are married and have children that are in school, then this may be true.  Moving is best done in the summer while the kids are out of school so that there is no disruption in their education and you have nice weather.

The truth is that most buyers right now are single.  The season has little to do with their methods of reasoning.  It’s about when a buyer can find the best deal.  If an incredible opportunity comes along 2 days before a national holiday and they are a serious buyer, well they are likely going to make an offer.  Take advantage of the impulse buyers and there are more today than ever.

The 2nd fallacy is “never offer the full asking price.”   Have you seen the real estate market lately?  If not, then this good sounding advice is out of date at the present time.

More and more sellers are learning that they cannot over-price their homes to encourage multiple offers.  For properties that are priced right in multiple areas there are multiple interested buyers and this can result in multiple offers.  It is competitive right now and that is made more difficult by the amount of cash investors.

As a seller, it’s best to price your property in the movement of the market as there is more likelihood that there could be multiple offers.

As a buyer, unless you don’t expect a competitive situation, you are better off offering a fair price instead “low – balling,” and the seller might actually accept your contract over the “low-baller.”

Last but not least, number 3; Cash is King!  In the past, cash buyers got used to being able to offer lower than the asking price and it being accepted against another offer with financing.  This is still the case for a number of properties with a seller who is leery of buyer financing.  Even the other buyer making the finance offer would assume they didn’t stand a chance against cash.

Hold on to your hat there partner, that may not work anymore!  The harsh reality now is, ahem… the seller may actually choose a financed offer with a 20% down payment and pre-approval from a lender that offers the full asking price.  In fact, some agents may even go as far as setting up a conference with the pre-approved lender and the seller, as well as provide proof of their buyer’s income, assets and credit report.  Now that’s an agent committed on getting the seller the highest price.

So what have we learned?  In a new market you must be aware of what is working today that is change from prior market trends and guidance, whether buying or selling.  Find a real estate agent that is local and has a track record of transactions where you are looking to buy or where you’re selling.  You want someone who has their ear to the ground, who has integrity and works hard on your behalf. 

Posted in:General
Posted by Michael Hobbs on May 6th, 2013 12:17 PMPost a Comment

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