April 4th, 2013
In honor of April Fool’s Day, Brendon Desimone takes a look at the myths that often trick potential sellers and buyers in a Zillow blog post, “Don’t Be Fooled By These 3 Real Estate Myths.”
These assumptions are often based on outdated assumptions or generalizations that can hinder a buyer from finding the perfect home.
Myth 1: The best time to sell a home is in the spring.
According to Desimone, this assumption is tied to the idea that families want to move during the summer, and therefore start looking in the spring. While there are more homes for sale in the spring time, that also means more competition for both buyers and sellers.
In reality, the best time in during the holidays and right after.
This is a supply and demand issue that helps both buyers and sellers. When there’s less demand, there’s more of a supply – meaning homes for buyers, and buyers for people looking to sell a home.
Myth 2: Start with your lowest offer.
There’s no rhyme or reason for making an offer on a home, unfortunately, but starting with a low ball definitely isn’t the solution in this day and age of tight inventory.
In reality, sellers aren’t naive about this economy. Many sellers just hope to break even, instead of taking a loss when selling their home. This market is very different than it used to be, and the majority of sellers aren’t being greedy. Work with your real estate agent to determine if the asking price is on target, and what you should offer.
Myth 3: The cash offer gets the house.
One of our clients proved this myth incorrect. After several years of shopping for a vacation home, the couple found the one of their dreams. They put in their offer with a pre-approval, only to find out a cash offer was also received. They were instantly disappointed, and assumed the cash offer would trump. But just a few days letter they got the call that the cash offer fell through, and they got the house!
In reality, sellers often prefer the solid financial transaction and higher offer that come with financed buyers. Cash offers are usually below asking price, and the buyer is usually high maintenance with many demands.
If you’re going up against a cash offer and you really want the home, work with your real estate agent to determine the best next steps. Sometimes making an offer more than asking price combined with the right documentation showing you’ll for sure get the mortgage is more appealing.