Episode #26: Real Estate Myth Busting
The Savvy Synopsis
Buyers and sellers often fall for real estate myths. We'll address these myths and find the truth along the way.
Real Estate Myth Busting.
- 1:13 - Buyers think homes are more negotiable if they've been on the market awhile. This isn't necessarily true. Remember, if a seller had been negotiable, they probably would've been more flexible from the beginning.
- 2:43 - Many sellers think they HAVE to have an open house as part of their marketing strategy. In reality, an open house is only worthwhile in a high-traffic area. No one is going to travel to the middle of nowhwere to see a house.
- 5:31 - Homeowners hear that a 30-year fixed rate mortgage is the best way to finance their house. Really, this should be a personal decision based upon your unique situation. As an example, some homeowners find an adjustible rate mortgage is more efficient if they're only planning to live in the home for a short time.
- 7:50 - Sellers have heard overpricing your home could leave room for negotiation. While this is technically true, it could backfire on you. If you overprice your home, you might not get as many buyers looking at your listing.
- 11:04 - This week we travel to Treyburn in Durham.
- Treyburn is located just north of downtown Durham. It's a golf course community.
- It features single-family homes as well as townhomes.
- It's an established neighborhood featuring many homes that have been refurbished as well as newly built homes.
- Home Size: 2,100 Square Feet - 11,000 Square Feet.
- Price Range: $250,000 - $1.5 million +.
- 14:40 - Tilly in Holly Springs asks how long it would take her home to sell were she to list it in the next few weeks.
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It's time for The Savvy Realtor podcast. I'm Walter Storholt alongside Angie Cole the owner and broker in charge of A Cole Realty serving you throughout the Triangle teaching you about the ins and outs when it comes to buying or selling a home. You can find the team online by going to A Cole Realty dot com that's A C-O-L-E Realty dot com or by calling 9 1 9 5 7 8 3 1 2 8 that's 9 1 9 5 7 8 3 1 2 8. And now it's time for one of the top realtors in the Triangle. Angie Cole and The Savvy Realtor podcast. Angie I'm sure you have spent a lot of time over three years helping those six 600 families bustling a lot of real estate myths that people probably walk through your door or you walk through their door to meet with them and find out are they kind of you know are under some assumptions that might not be correct all the time.
And I feel like it's the same myths that come up time and time again. So as soon as someone mentions it I'm like No not correct.
Well I happened to see this list that the Orlando Don't ask me why we're pulling this from Orlando it just happened to be who published this. The Orlando Association of Realtors myth number one they identified was that the longer a home has been on the market the more negotiable the deal is.
I agree that's 100 percent a myth. Well I would say maybe 80 percent of math OK reason sometimes. Yeah. First of all you know you need to remember if a seller was negotiable then they would have priced the home right from the very beginning. Now if they were anxious to get their home sold they would have done a price reduction. They probably are more than likely just kind of testing the market. There's no driving force or motivation behind you know them selling their home. And so even though their home has been on the market now for 100 days doesn't necessarily mean that they will just become more negotiable and they will take a slash in the price point because you approach them with an offer. I have seen some times once again now this is maybe the other 20 percent of sellers where their homes been on the market for a while. They finally get an offer and they say you know what. We just want out of it. We'll be done with it you know so they will accept a lower than normal offer. But typically what I find is we are dealing with a seller who is hardheaded who doesn't want to be faced with the realization of the market and the price point of where the home really should be listed. And so typically as your home or as a sellers home sits on the market that does not mean that they are going to be more negotiable.
Yeah it's a great myth to bust on today's show an 80 percent myth as we'll call it. What about this one an open house must be part of the marketing plan for a home.
No no that's a myth. And the reason why it's a myth and I can't tell you how many open houses we have hosted and we've had not one single person and walk through the doors. I thought everybody liked a party. Yeah I would love it that way because we you know if you're hosting open house for two to three hours you want some visitors right. Because it's boring if there's no one coming through. But the reason being an open house is only worthwhile if you are in a high traffic area where you will get that drive by traffic you're easy to get to. You know for example if you are in the the boonies you're in the middle of nowhere. If you're hosting an open house I doubt you that someone will go and drive 45 minutes out of the way to go through that open house. It just it doesn't happen. Typically what we find we just have you know a nosy neighbor neighbor who swings by you know we love to see the neighbors is that that's the only open houses I've ever driven by and been like Oh yeah let me go check that out.
I have been the ones for the neighbors I've been like I'd be fun to go see but I'm like he does want to compare your home and I don't want to be the nosy Abe right. I'm like an.
But some some neighbors don't care. Neighbors don't care they they're fine with being the nosy neighbor and they will swing right through you. Also you know you need to be careful at certain price points too to make sure you have the foot traffic that you want in your home. Meaning you know if you have a luxury home. If we are hosting open house there you know as someone comes through a potential buyer we can't say I mean we could but we won't. Hey let me see your prequel or let me see your proof of funds before you walk through this home. You know so are the people that are coming through are they really even able to afford your home and buy your home or once again are they just being looky loos for ideas or is it maybe people that are coming through your home that shouldn't be in your home. So the only time I feel like an open house is a great part of an actual marketing plan typically is a lower price point. I see normally under three hundred thousand. It's great because we get a lot of I would say more for some home buyers maybe who have not had that connection with the real estate agent yet or their high traffic areas.
I think open house would be great if you don't have a fantastic like online presence which in today's world you should have a fantastic online presence right. I mean if there is a home I see that's got beautiful photos and all sorts of great stuff. Then I'm just gonna set up a time to go see it. I'm not going to wait for there to be an open house for it.
Right. But also you know the only successful open houses typically are ones that have a lot of online presence too. So if we don't market the Open House effectively we're not getting the foot traffic. We should get either. So I mean I really think an open house is only for those homes that you know off of Main Streets are easy to get to. A lot of visibility and there in a certain price range.
Yeah that's a good point. All right. Another myth Angie a 30 year fixed rate mortgage is the best form of financing.
Yeah definitely a myth. I mean that's a personal preference based on your personal needs and your finances. I see a lot of people that are taking advantage of an adjustable rate because you know they don't plan to live in their home for more than five years. So they take advantage of the lower interest rate knowing they're going to sell so they never have to worry about the interest rate ballooning or increasing. Also you know maybe a 15 year mortgage is better for you. You know maybe you have the means 15 or 20 year the means to put just a teeny bit more towards your mortgage payment. But you know that's cutting down on the amount going towards interest.
You know if you stretch it out to those 30 years people don't realize you're going to have a mortgage length of pretty much any length you want. Yeah. You don't have to fall into those bracketed 30 or 15. You can have one and a half your mortgage.
You know you're right. I mean there's so many options just like there are with down payments a lot of people they feel like well the more money I put down the better the scenario would be for you know my whole mortgage plan. Not necessarily. You know speak with a lender because you know sometimes even put an additional ten thousand down really isn't tweaking your actual mortgage payment all that much. So you know you need to decide once again what works best for your personal situation and your finances when it comes to getting a mortgage. So there's so many different types of programs beyond you know fixed rate adjustable the timeline as far as like 10 15 30 year mortgage. There's also different types of loans. You know we have USDA we have a conventional FHA state employees has 100 percent financing through them. So you know speak with a preferred lender which we have three wonderful preferred lenders that we work closely with. So if you would like a contact I would love to connect you with one of them or more than one of them. But yeah you know talk to your options with a lender ask for a good faith estimate to compare apples to apples again if you want to get in touch with the lender.
Angie Cole can help make that connection for you. Well if you want to talk about your home and then the mortgage side of things either way Angie can help you can guide you through the process I suppose call or text or at 9 1 9 5 3 8 64 four seventy seven that's 9 1 9 5 3 8 6 4 7 7. All right Angie One more myth here that will cover is overpricing your house leaves room for negotiation.
My guess is kind of could go both ways. Does it leave room for negotiation. Sure. But if you overpriced your home you're not going to see the foot traffic that you should see in order to get that offer. You might get lucky and someone might come through the door who's ready to make an offer but you're only really hurting yourself. It's always best to price your home.
Technically not right. You do have room for negotiation or the myth would be if we said I guess overpricing your home won't hurt you in the long run right. Then that would be the myth.
Yeah exactly. It's definitely going to hurt you. So yeah. Does it leave you room for negotiation. Personally yes. But your home's over price. So say for example a home should be listed at two hundred thousand but you decided to listed at two hundred and ten thousand because you wanted to leave some room for negotiation. Well if originally your home should have been listed at two hundred thousand no one will probably get somewhere between one ninety five and two hundred based on comparables. When a buyer makes an offer you're at to 10 they're still going to expect that one ninety five price point they're not going to now expect that two hundred thousand price point where we should have started initially so you know overpricing your home actually will more than likely hurt you long run because if you overpriced your home you're getting less showings on your home so you won't get an offer as quickly. And then the longer your home sits on the market typically we start to see lower offers. So you know price your home right from the beginning. And so if you're thinking about selling your home and you want to know OK Where should I price my home in order to get the most offers an offer as quick as possible. We have a great tool that we would love to share with you which is a wonderful starting point. And so to get an idea of what you should list your home for in today's market you can text the word listing to the phone number 5 5 5 8 8 8. So once again on your smart phone just text the word listing to the phone number 5 5 5 8 8 8. And from there we we'll send you back a tax with a link. Make sure that you do click the link you input your address and then from there we can give you an idea of where you should list your home for in today's market.
That's all you have to do it starts with a text and the number is 555 5 8 8 8. The word that you use is listing. You just text that word. Put that in the message listing and send it to the number 555 8 8 8. Just like your texting a friend. What we'll do is send you a text right back and we'll have a link in it that you click on and put in your home's information and you can find out that potential home value if you were to sell in today's market. It's a fantastic starting point.
If you're thinking about selling your home in the near future all you have to do is send that text listing is the word Elias TNG. Send that to the number 5 by 5 8 8 8 and you can find out the potential home value right now. Stay tuned more coming up on today's show.
This savvy real tour will go on with more with Andrew Cole next.
Let's shine a little light on some of the Triangle's best areas right here on the neighborhood spotlight.
Thanks for joining us on the savvy real tour today it's time for the neighborhood spotlight. Very great part of the show where we find out about new nooks and crannies throughout the Triangle get to learn about those areas and why you might want to move there.
Or if you live there what the market might look like to possibly move out of that neighborhood in that area. Always enjoy learning about new areas and Andrew where you're taking us this week.
Yes so we're going to Duran and we're going to try to burn our listing of the week is in Trey Bernard I thought I would just give you some more details about this wonderful subdivision. So Trey Byrne is located just north of downtown Durham. Kind of in between Highway 5 one right near the Little River. Trey Byrne is a golf course community. So if you decide you want to become a member of the actual golf course section you definitely can then take advantage of that. The home started being built back in 1989 and they actually have some new construction that's happening in the neighborhood right now as well. Most of the neighborhood is single family homes. But the new construction are some really really nice townhomes that they have added into the neighborhood. The square footage range I mean is huge. So you know for example we have the townhomes that are you know just over 20 one hundred square feet. There are some homes that go up to about 11000 square feet. Wow. I still haven't said that again. LeBron 11000. Yes. So we have a wide range of homes in this neighborhood by neighborhood geographically right. It is it's definitely yeah. It's really like spread out. You know there are some neighborhoods within the subdivision you know like pockets of the subdivision. And yeah like I mentioned I mean there's you know definitely lots of different styles and sizes and ages you know homes are going anywhere from. We have you know some starting as low as two 50s but then going all the way up until over a million you know. Right now there's one active and on the market at one point two five million. OK. So yeah. Definitely a different range of homes. A theory just a solid neighborhood in the sense that it's been there for a while. Very mature very wooded lots of trees it is you know we have that golf course they but it definitely wooded lots and very maturity a lot of maturity behind the whole neighborhood.
Yeah but you can tell her there's been a lot of good landscaping as you kind of go through that Navy Yard and people have done a good job kind of taking care of that of their homes in that area it's hard to spot.
Yeah. We're seeing a lot of homes. You know some are still data but other ones where they're going through and just really you know remodeling and updating the interior to kind of bring it up to you know the newness.
Yeah seems like kind of that area too where you're you're not in the city but you're also not like way out are you. Yeah kind of just kind of right on that edge a good pocket. Yeah sure. Oh good pocket that's a good way to view it for sure. All right so that's this week's neighborhood's spotlight if you'd like to get more information about this neighborhood whether you're looking to move into or out of Trey burn. You give Angie Cole and her team a call 9 1 9 5 3 8 64 77 puts you directly in touch with Angie.
You can call or text her at that number as well if you'd like to spark up a conversation about buying or selling. Here in the triangle it's just a simple phone call and again that number is 9 1 9 5 3 8 64 77. That's 9 1 9 5 3 8 6 4 7 7.
That's this week's neighborhood spotlight. There's more to come on the savvy real estate
It's time for the mailbag. We want to hear from you
Tilly and the Holly Springs Tilly. I like the name by the way it says.
How long do you think it would take for my home to sell if we listed in the next few weeks. It's a solid starter home in a good neighborhood.
Me This is honestly a tough question just for me to answer without knowing your exact location your neighborhood your price point because those are all factors that come into play when we're looking at average days on the market. What I can tell you Tilly in 2018 I know we're into 2019 but just pretty much you know up until now. Average days on the market for all of our MLS in our triangle MLS was at twenty three days but for our team we were at eleven. So you know average days on the market I would say for most neighborhoods and price points should be under 30 days. But once again me if you have an eight hundred thousand dollar home you know more likely your average days on the market will be higher than that. But to get a good idea we would definitely to meet with you in person and from there we can share with you what we're seeing within your specific market and that in return should kind of give you you know a basis to go off of. But me if you are thinking about selling your home a great way to get started of course is always to understand an idea of what your home would go for in today's market and to do that.
We have a great tool that we would love to share with you. So from your smartphone you can text the word listing to the phone number of 5 5 5 8 8 8 and from there we will then be able to generate and send you back an idea of what your home would be worth in today's market. So once again just take out your phone and text the word listing to the phone number 5 5 5 8 8 8. Make sure though you go through all of the steps because from there we will send you back a tax with a link. Make sure that you click the link you input your address and from there we will then send you an idea of what your home is worth. So once again if you're thinking about selling your home in 2019 a great way to get started is by texting the word listing to the phone number 5 5 5 8 8 8.
You've been listening to the savvy real tour podcast. I'm Walter store Holt alongside Angie Cole. She's the owner and broker in charge of ACO realty here in the Triangle and if you have questions for Angie we invite you to go online to a call realty dot com. Listen to a past podcast episodes on the Web site read the blog and all the great information including the option to find a home right there on the website. That's a call realty dot com and you can also call ante with your questions. 9 1 9 5 7 8 31 28.
The above audio transcript of "PODCAST 026 - REALTY MYTH BUSTING - ANGIE COLE.mp3" was transcribed by the best audio transcription service called Sonix. If you have to convert audio to text in 2019, then you should try Sonix. Transcribing audio files is painful. Sonix makes it fast, easy, and affordable. I love using Sonix to transcribe my audio files.