Common misunderstandings about the Real Estate Market

Buying or selling a home is a huge commitment, and it is definitely not something the average person does on a daily basis.

Because of this, there are some common misunderstandings that plague buyers and sellers alike.

"I can get a better deal if I don't use an agent!" -buyer

Let's stop right there for a second. This is one of the most common mistakes made by buyers. While it does seem logical that you would save money by house hunting solo, it is in fact the opposite! As a buyer, you could actually save money by using an agent.

See, when you're the buyer, your agent works for a portion of the commission on the home that you will end up buying.

To put that a little simpler, what your agent will get paid is already factored into the listing price. Their commissions usually will be paid by the seller. So by using a realtor, you will be getting the expertise of someone who has much more exposure to the real estate market than you do. What this means for you is that you will have someone fighting for your best interest whose main goal is to get you the best deal possible on your dream home!

Best deal= save $$$

"I will make more money if I renovate my kitchen/bathroom/etc." -Seller

Now this is something that is entirely dependent upon your buyer. Yes, while it is possible to fork out some $$$ and update that kitchen or bathroom, you might run into some issues.

Let's try an example:

The Fox's are selling their home. Since the home was built quite a few years ago, they figured that they would update their kitchen prior to listing their home. Carol Fox falls in love with this gorgeous red tile. She picks out a design and they spend weeks (and $$$) getting the home ready to sell.

Lucas Deer is a prospective buyer who absolutely adores the Fox home. He goes in and to his unpleasant surprise, he comes face to face with bright red floors. Being newly renovated, he knows that the sellers are going to be less likely to come down on their price, and he doesn't want a home with bright red tile that he would have to tear up, so he moves on to the next one.

The lesson to be learned here is that not every buyer will have your style. Even though you love those floors, not everyone will share the same opinion.

Your best bet is to leave it alone and to alter the list price accordingly.

Pricing your home too high.

While it sounds like a great idea, I assure you that it is not. It could actually end up meaning that you will get less for your home!

Many buyers won't even look outside their price range. If your home is listed at $175,000 when it really should list for $135,000 you will be missing out on a huge margin of buyers in that price point. What this could mean for you is that your home could stay on the market longer...and the longer your home stays on the market, the harder it will be to sell.

I would recommend going into your listing with an open mind and reasonable expectations as to the value of your home. Always ask your real estate professional to run comps (matching your home with other similar homes in your area to find a ballpark listing price) that way you can have a better understanding of what homes like yours are selling for.

To sum it up...

There can be a ton of misunderstandings in the real estate process. That is why it is so very important to find a realtor that you trust to guide you along the way. Buying a home is a huge investment, and selling a home is a huge process. Make sure you find someone that is knowledgeable about your local market and can easily assist you in your transaction.

Make buying/selling a home an exciting time in your life...not an overly stressful burden.

Elizabeth is a Realtor in Bowling Green, KY. Her license is held with Bowling Green Realty, Inc.

For more information about buying/selling homes in Southern Kentucky, you can reach her at 270-392-0325 or elizabeth.davenport95@gmail.com.