Selling a home is not an easy task. Yet it does not help that certain home owners hold on to certain myths as hardcore truths. This not only makes it difficult for the salesperson selling their home, it causes the sale to become a tedious, long drawn process. A home is perhaps the most expensive asset that a person would own throughout his or her life and when it comes to selling it, often emotions come into play.
The home selling process is usually methodical and calculated. A well thought out marketing plan by a diligent property agent should get the job done if the property is priced right. The bottom line is that the home owner needs to understand that certain things which he or she may think are true may actually be pure myth.
Myth #1: The home owner sets the property price
This is perhaps the fundamental mistake which home owners make. They invite a property agent to list the property and then they determine the price of their property. The truth is that if the recent transactions of properties in the area are in the region of $500,000, listing the property at $550,000 is most likely going to send the wrong signals to buyers. Especially in a stagnant market. A serious buyer will not want to view a property listed by a seller with an unrealistic price.
The truth: The market sets the property price.
Myth #2: I should overprice my home to leave space for negotiation
This is also a very common mistake made by home owners. The mantra that you should leave room for negotiation is grossly untrue. Negotiations start only if potential buyers who are ready to make a purchase show up. In fact, negotiations do not only centre around price. They also involve other factors like what is to be left behind in the property and the moving in and moving out date. An appropriately priced home will attract the right group of buyers.
The truth: Price the home at market value to attract the right buyers.
Myth #3: The longer the marketing time, the better chance of getting a higher offer
We have heard it all before. The home owner says that he is “not urgent” and would like to list the property at an extremely high price to “try”. Well for starters selling a property involves opening up your property to buyers to viewings, often on weekends. So it involves interrupting your schedule. Next, buyers have heard and seen many owners mention that they are “not urgent”. We all understand that that actually means “I want you to find a rich Indonesian or Chinese buyer who is willing to pay an insane amount of money for my property which is no different from the other ones on the market which are selling for a much lower price”. Buyers know how long a property has been on the market. It may seem like you are getting somewhere with all the viewings but then the viewers are also those who are “not urgent” to buy. In fact, I have had buyers asking me whether a certain house was haunted or is someone had passed away in it since the property has been on the market for such a long time.
The truth: Sell the property in the quickest possible time period. If you are not serious, do not list your property. It may do more harm than good.
Myth #4: A quick offer means I have priced my property too low
We get this rather often. A property is listed and on the first or first few viewings, an offer comes in at or close to the selling price. The first impression as a home owner would be to think that the property was priced too low. The truth of the matter is that serious home buyers monitor the market on an almost daily basis. The moment a new listing comes up, they will want to view it. If the property is suitable, they will offer on the spot. Property agents will also monitor the market on a daily basis. Once a suitable unit pops up on the market, they will alert their client. Instead, focus on whether your appointed property agent is giving enough exposure to your property. If he is, offers should come in rather quickly if your property is priced appropriately.
The truth: A quick offer means your property agent has done his work well and the property was priced appropriately.
Myth #5: I should hire the property agent who promises me the highest selling price
On many instances, promises are broken. Not just in sales but in almost every aspect of life. Deciding on which property agent to hire based on the promised selling price is the absolute wrong thing to do. A good property agent would advise you appropriately on pricing and instead focus on what he or she would do to market your property. If getting listings was about promising the highest price then it would be a no brainer for every property agent to go to a listing presentation with a ridiculous promise. The thing is that some property agents still do that. You should be wise enough to realise that such promises only serve to distract you from your eventual goal which is to sell off your property.
The truth: Hire a property agent based on his or her credentials, marketing plan and whether you feel comfortable with him or her.
Myth #6: Paying a low commission will mean that I can keep more from the sale
I believe many of you would have read that the cost of marketing properties is not cheap and is going to get more expensive. Online portals cost a great deal of money to property agents. So do newspaper adverts and advertisements on platforms like Facebook and Google. Imagine this, if you decide to pay 0.5% of the sale price as commission, do you think the property agent will focus on your property if he has other home owners who are promising him 2% of the sale price as commission? You can look for property agents who do not have any listings which pay him 2% but then do you really want to hire such an agent? If he cannot even fight for his commission, how is he going to fight for a good price for your property? So next time you decide to pay your property agent a meagre 0.5% commission, think about this: Would you rather sell your house for $1,000,000 and pay 0.5% commission or sell it for $1,050,000 and pay 2% commission? If paying little to no commission makes any sense, then why is it that all the record breaking prices are done through property agents and not the do-it-yourself (DIY) property sites?
The truth: Pay a good and responsible property agent a good commission and you will get a good selling price on your home.
Myth #7: My house will sell itself
That is perhaps no further from the truth. Salespeople, whether you like it or not, are the ones who get things moving. Very rarely do buyers initiate an offer. Especially in a stagnant market. It is usually the property agent who has to make the follow-up call to the client. Remind him or her about the good points of the property and allay any concerns with regards to the property. In fact, no matter how nice you think your property is, a well-trained property agent is still required to highlight the property to the potential buyers.
The truth: A good property agent is required to make that final push to buyers to get offers coming in.
Myth #8: Creative marketing will lead to higher prices
We have all been there. Home owners would want property agents to advertise in Indonesian classifieds, luxury magazines or perhaps get the property agent to do up a special video for their property. The fact of the matter is that a property agent should be maximising exposure on the usual platforms like online portals and classifieds due to the very fact that these are places whereby buyers go to to look for properties. While creative marketing is good, it should not serve as the main form of marketing but merely an additional service by the property agent. Unless your property is a super luxurious penthouse overlooking the Singapore skyline in District 9, then listing your property on the latest edition of Singapore Tatler is not going to help.
The truth: Focus on whether your property is getting the maximum exposure on platforms with the most number of buyers.
Myth #9: I can recuperate my renovation cost
This is really untrue in most cases. The buyer is most probably not going to want to have your old renovation no matter how nice you think your renovation is. The fact of the matter is that it was done to your taste and liking and thus a change is in order when a new owner comes in. A home owner usually sees only the good thing about the property. If you paid $60,000 in renovation cost when you moved into the property, do not think that your property can sell for $60,000 more than similar units with little or no renovation.
The truth: You will not be able to get back the full value of your renovation in your selling price.
Myth #10: I do not need to do any preparation when selling my house
Have you heard of home staging? Well, home staged properties sell faster than homes that are not home staged. Even if you do not want to go through the hassle of getting rented furniture in to do home staging, it is important to declutter and make sure that the property is neat and tidy. First impressions count and a messy property will most probably put off potential buyers. A cluttered home makes spaces look small. A dirty kitchen is just unsightly. A leak in the toilet ceiling tells a buyer to reconsider as there may be a huge maintenance bill waiting for him when he takes over the property.
The truth: Work with your property agent on what needs to be done to prepare your house for sale.
Yours Sincerely,
Daryl Lum
