REAL ESTATE MYTHS & FACTS

What the Experts want you to know

By Andrew McGrath

18-08-2018 |
MYTH: You can always go down with your price, but you can’t go up. FACT: We have many examples of homes selling for over asking price, gazumping is not illegal. Correct pricing is crucial to a successful sale. MYTH: I don’t need an Agent FACT: The Agent is the only person allowed to talk to the Vendor AND the purchaser. Solicitors are only allowed to talk to their own clients. Negotiations involve large sums of money and your home, they are often tense and are may be legally binding. You want someone experienced taking care of that. MYTH: If we renovate we will get more money FACT: Renovating can add value to a property but it is not guaranteed. You need to research the market to be sure you get it right MYTH: Buyers will pay for the potential of my home FACT: It helps when marketing the home and helps a buyer decide on the property, if they can see the potential, but they seldom pay any extra for it. Infact it is actually a cost for them to “realise” the potential. MYTH: We will just put it on the market and see how we go. I won’t sell unless I get my price. FACT: Be careful trying this. Lets say you put your house on the market for $100,000 more than it’s worth and a few months later you find a house you want to buy! You drop the price of yours to sell quickly ... but buyers assume there must be something badly wrong with your home and they stay away. MYTH: Agents have a Magic Tool Kit for selling homes FACT: Sorry, we don’t. We are skilled negotiators and industry professionals, but Vendors control the most important aspects of the selling process - PRICE, PRESENTATION and how we can PROMOTE your property. MYTH: Real Estate Agents are always late FACT: We may not be early often, but a good agent will call you if they’re going to be more than 5 minutes late. Respect is earned by providing what is promised and being on time. MYTH: Agents will say anything to make a sale FACT: While no doubt, some will, making misrepresentations or a false statement is against the law & Agents can be prosecuted. Agents who break fiduciary relationships or fail to disclose material facts are subject to prosecution and loss of their license or certificate to sell real estate. MYTH: Gazumping is the Agent’s fault. FACT: Gazumping is rampant in private sales! Gazumping occurs when a buyer negotiates a verbal agreement with the seller, but then the Vendor receives a higher offer from another buyer and reneges on the initial agreement. By law, an Agent is obligated to submit every offer they receive to the Vendor, until Contracts are Exchanged on the property. The Vendor makes the final decision on who they sell to and for what price.

Tags

Selling Buying