A lot of people believe these real estate myths without giving them a second thought. We’re clearing things up today.
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Today I’m going to bust five real estate myths for you. We consistently hear conflicting information from our clients and other people we work with, so we wanted to clear the air. Here are five myths that you shouldn’t believe:
1. Zillow’s pricing is accurate. In fact, Zillow uses algorithms to determine home values that run off of mathematical equation. A computer system has no idea what kind of view a property has, what kind of privacy there is, and any recent renovations or updates.
2. It’s okay to overprice a home because you can always come down. I understand the motivation behind why a homeowner would want to do this, but here’s the disadvantage. A lot of times, overpricing will put you in a price bracket where buyers aren’t looking for a home like yours. It’s not always the best scenario, and it can cause your home to sit stagnant on the market instead.
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Zillow doesn’t take into account many of the factors that make up your home’s market value.
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3. When making an offer, you need to start low. I tell buyers all the time that if you feel like a home has everything you want, I recommend offering an amount that will speed up the negotiation process so that no other buyers can buy it. It stinks to know that you’ve gotten beat out by a buyer, especially on the home of your dreams.
4. The longer a home has been on the market, the more negotiable the seller will be. This does make sense on the surface because the home hasn’t sold, but at the end of the day it all depends on the seller’s willingness to accept an offer. I’ve seen plenty of stubborn sellers out on the market who won’t settle for anything other than their asking price.
5. Multiple price reductions mean the seller is desperate to sell. At the end of the day, the seller may have little or no motivation to sell, even if the home’s price has come down. Every situation is different.
If you have any questions about these myths or any other questions about real estate here in Tucson, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.