The Real Estate Browser Volume 10, Issue 4 | Page 41
www.LynchburgRealEstateBrowser.com
Volume 10 Number 4 – Say you saw it in The Real Estate Browser of Lynchburg — 41
in a declining market, the danger is that all
The Internet has made much more infor-
mation available to consumers, but not all the the offers will come in at the asking price or
lower.
information is equal, or even accurate.
“A lot of people, for some reason, they
believe what they read on the Internet,” says
Gea Elika, principal broker of Elika Real
Estate in New York and a regional director of
the National Association of Exclusive Buyer
Agents. “Read everything you see on the
Internet with a grain of salt.” You can get a better deal as a buyer if you
don’t use a real estate agent. “That’s a com-
pletely false premise,” Elika says. If the house
is listed with a real estate agent, the total sales
commission is built into the price. If the buy-
ers don’t have an agent, the seller’s agent will
receive the entire commission.
The danger with believing everything you
hear or read is real estate myths can cost you
money when it’s time to buy or sell a home.
Here are nine of the most common ones that
can trip up buyers and sellers: You can save money selling your home
yourself. Some people do successfully sell
homes on their own, but they need the skills
to get the home listed online, market the
home to prospective buyers, negotiate the
contract and then deal with any issues that
arise during the inspection or loan applica-
tion phases. It’s not impossible to sell a home
on your own, but you’ll find that buyers
expect a substantial discount when you do,
so what you save on a real estate commission
may end up meaning a lower price. It’s not
impossible to sell your home on your own for
the same price you’d get with an agent, but it’s
not easy.
Set your home price higher than what
you expect to get. Listing your home at too
high a price may actually net you a lower
price. That’s because shoppers and their real
estate agents often don’t even look at homes
that are priced above market value. It’s true
you can always lower the price if the house
doesn’t garner any offers in the first few
weeks. But that comes with its own set of
problems. “Buyers are highly suspicious of
houses that have sat on the market for more
than three weeks,” says Nela Richardson,
chief economist for the brokerage Redfin.
In areas such as San Francisco where mul-
tiple offers are common, sellers will actually
price their homes for less than they expect
to get, in the hopes of getting multiple offers
above asking price. However, if you do this
The market will only go up. In recent
years, homebuyers and sellers have experi-
enced a time of increasing home values, then
a sharp decline during the economic down-
turn and now another period of increasing
values. “They think that the market only goes
up,” Elika says. “They don’t think about when
a correction will come.” The recent recession
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