Real Estate Fact Or Fiction
The Savvy Synopsis
These five common ideas about real estate might have you asking whether they are fact or fiction. Angie will set the record straight on everything from the importance location to the best way to list a home.
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Fact Or Fiction
- 00:55 - Fact or Fiction: The thing that matters above all else is location, location, location.
- FACT. Whenever buyers start discussing buying a home the conversation usually starts with where the house must be located, whether that’s a particular neighborhood or a certain commute time or radius.
- 2:06 - Fact or Fiction: List your home for a high price because it gives you bargaining room.
- FICTION. You can actually hurt yourself by doing this. You probably make less money if you overprice it in the beginning.
- 3:10 - Fact or Fiction: As a buyer, never offer asking price on your first bid.
- It can be both, but more so FICTION. It depends on how long the house has been on the market. Consider the urgency, if there are other offers being made, or if the house has been on the market for some time.
- 4:52 - Fact or Fiction: A home with furniture will sell quicker than an empty home.
- This depends on the home and the type of furniture. When the furniture is really rundown and clashing, it can be distracting. But most of the time, it sells better with furniture in it. The room can actually look smaller without furniture sometimes, so this is a case-by-case basis.
- 6:50 - Fact or Fiction: Listing your home as a for sale by owner can save you a lot of money.
- FICTION. There have been studies and on average, for sale by owners will actually get less money. You get less exposure to your home because of your limited marketing plan. With a realtor, the more viewers you get, the quicker you get an offer, and the higher price point you get. On average, selling with a real estate agent you’ll net a higher amount.
- 10:16 - Joey has looked at a few homes with minor issues like carpet stains, warped hardwoods, and ugly countertops. How much is too much? Is there a fine line between fixer-upper and cash pit?
- It depends on the buyer. If it’s more cosmetic, such as painting or floors, that is not a lot of items to do. In today’s market you have to be open to doing some of those changes. Make sure you are buying your home at the value of its true condition.
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PODCAST 037 - REAL ESTATE FACT OR FICTION - ANGIE COLE.mp3 (transcribed by Sonix)
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... so I'm gonna throw out some general thoughts about real estate. Angie that you know we've heard some sayings about real estate that we've may be.
I want you to tell us if these statements are fact or fiction and some of these might be and it depends I know but some of these maybe you can give us a definitive ruling on. So first one fact or fiction. The thing that matters above all else is location location location.
That would be a fact. I definitely agree with that. You know normally whenever buyers start discussing with us you know what they're looking for in a home. The first thing they state is it must be in this area. You know we must be this distance from the school that our kids go to or you know this travel time to work. So almost always location is number one and sometimes it's broad right.
Sometimes it's I need to live within an X radius and other times it's very specific like this neighborhood.
Yeah. I mean you know and sometimes we do have clients who say you know Raleigh could work Apex care. You know it's not super super specific but at other times I mean it is very specific. I only want to be an East Raleigh or you know or like you mentioned in this subdivision. So above all else I would say location definitely matters.
Yeah that one's an easy one. Top of the list. That's where everybody pretty much begins at some point in. There's very few here to say yeah anywhere in the world is fine I have no location reference whatsoever at some point.
There's gonna be a filter right. Right exactly.
That's important never to list your home for a high price because it gives you bargaining room.
Oh gosh that's definitely fiction. You actually can hurt yourself so if you overpriced your home. First of all you look like a very unrealistic seller. I actually I was speaking one of my buyer specials this morning and talking about this exact same situation. It was a limited listing service meaning that it's pretty much a for sale by owner. They just had someone stick it in MLS completely overpriced. So already it's like OK you went with a discount broker to list your home then you significantly overpriced your home. So you're just going to look just not realistic in regards to negotiation right. So overpriced in your home actually can hurt you in the long run. You actually probably make less on your home if you overpriced it in the beginning versus just pricing it correctly. You know and market value just out of the gate.
Yeah it's a really good point. And a lot of people I think just need to keep that in mind. Be sure to remember that you want to list your home at the right price not the high price. Right. Right. Yes correct. Flipping over to the buyer side. Another fact or fiction. As a buyer never offer asking price on your first bid. Kind of the opposite of number two.
You know I would say it can be fact or fiction. OK. And I say that more more so I would say fiction just because it depends on how long the home's been on the market right at the home. Just hit the market today. Come to find out there's multiple offers. You definitely better be probably you know offering asking price if not above. So it all really depends on. What are the comps saying the homes worth. Also what is the urgency there. You know do have other parties that are interested. How long has a home been on the market. So there's nothing wrong with a buyer you know offering asking price on their first bid at all.
Yeah that's a really good point I think. And a lot of people that's going to be one where I guess it depends because you're going to demand going into it. Hey. Yes. This house is going to go quick. We're wasting time and you may not even get a chance for a second offer because there are so many offers coming through on it then that would be obviously where this is fiction but yeah it's been on the market for a while then maybe that's fact. You can certainly start lower pay wouldn't hurt in that case.
Yeah. And you have to remember too. I mean a seller doesn't even have to respond to your offer if they don't want you. I mean they can immediately just reject it and go with another offer. So by just trying to save you know a thousand or two thousand dollars. I know that's a lot of money but in the grand scheme of things was it worth you maybe potentially losing the home that you love. So just be cautious on trying to negotiate too much. It depends on once again days on the market if there's other interested parties how the home is priced and then from there your real estate agent should be giving you advice you know on how to handle it how to make your initial offer.
So this one the next to that will cover are about listing a home. This one says a home worth furniture will sell quicker than an empty home.
You know this one I'm in between again it really really depends on the home as a whole and also the type of furniture I've been in some homes and unfortunately I said you know what this probably would show better just being vacant just because it was just really rundown furniture just you know just all clashing. You know it didn't help the home in any way. So in a case like that I would say you know what. Let's get the furniture out and actually the home would probably sell a lot quicker be an empty but less I would say for the most most of the time a home sells better with furniture in it. So as long as it's been staged properly it just really shows off room sizes. It's kind of crazy because actually rooms can look smaller when they're not furnished because there's no comparison there right. And so it's really nice when you have you know good furniture that you know goes well with the home. It is nice to actually have it staged with the furniture. I think a home would sell quicker that way or it does.
Yeah. Gonna be a case by case basis yes on that one but. But for the most part furniture typically is going to help a home sell faster. I think we benefited from selling our home without furniture in it because I think it made it feel bigger. When we sold our last time I think it really did help because we tended it. We kind of had bulky furniture.
I was just going to say that can hurt you too. Yeah. If you have larger furniture then could make a room seem smaller. So it really it's a case by case basis. It really is.
Funny thing is we bought it in there people before us their furniture was even bulkier than our furniture and really. Looking back at pictures yeah it's kind of funny to look at it was like wow it seemed really small when they had the stuff in there. But yeah but it was a fun home and we liked it so we went for it anyway. But yeah just kind of I think it definitely helped us by having it made it seem a lot bigger when we got that thing empty that's for sure sure. Yeah. Listing your home. This is another our last fact or fiction if you will listing your home as a for sale by owner will save you a lot of money. Obviously you're gonna be biased here.
But of course. Yeah. Of course I'm going to be biased but you know there's actually studies you know behind this and for sale by owners they on average sell less than what you would have sold your home for even listing with an agent and pay and you know that Commissioner that marketing fee you know and the reason being is you get less exposure to your home because of your limited marketing plan. When you do a For Sale By Owner you don't have all of those additional tools and you know that really drive the people into your home because the more viewings are showings you get the quicker you're going to get an offer and the higher price point you get. And typically what happens is with the For Sale By Owner the days on the market really start to add up. So they have higher days on the market and higher days on the market means a lower price point. So you know go in the For Sale By Owner route is not always the smartest choice. Now there are some sellers out there that have great luck with it. But on average selling with a real estate agent you're going to net a higher amount of money and that's what's most important. So if you're thinking about selling your home maybe you are considering a For Sale By Owner Because is important to you to save the most amount of money which I get it. You know our goal always is for our sellers to net the very most amount of money.
And I know that the commission fee comes into play with that. And on average again we always net our sellers more money than what they would have with a For Sale By Owner. But we even have a guarantee behind that. So if you are thinking about selling your home our team we have a twenty nine day sale guarantee. And what that means is if we cannot get your home sold in twenty nine days we will then sell your home for free. Selling your home for free means you're not going to pay the listing commission. OK. So we have an amazing track record as far as average days on the market which is lower than the most in 2018 average days on the market for the triangle was at 23 days. And our team was at eleven. So we are confident in our abilities to get your home sold super quick and for top value. So once again if you're thinking about selling your home we will stand behind it with a twenty nine day sale guarantee. If we don't get your home sold in twenty nine days we will sell it for free. So to start that conversation and to get more information just give me a ring you can call me directly. Our number is 9 1 9 5 7 8 3 1 2 8. So once again it's 9 1 9 5 7 8 3 1 2 8.
Again that gets you in touch with Angie call it allows you to take advantage of that twenty nine day homes sold guarantee. Just give Angie a call or text at that number and she can talk to you a little bit about that. You can also go to a call realty dot com contact Angie through the Web site. That's a call realty dot com where find the echo Realty team on social media as well on Facebook and Instagram. Be sure to just look out for Angie call or a call real time to find her there.
That's this week's edition of fact or fiction. A lot of fun playing that making sure we dispel some of those real estate rumors but also making sure that you're following some of the best practices we'll wrap up today's show here in just a little bit by answering some more of your questions. So don't go away. The mailbag and more still on the way. On today's show this is the savvy real tour with
It's time for the mailbag. We want to hear from you
Joey says we've looked at a few homes that have some minor issues like carpet stains work hardwoods and ugly countertops.
We're okay with doing a little fixing up. But how much is too much. Is there a fine line between fixer upper and cash pit.
Short daily. You know first of all I think it's the. It all depends on you. Right. It depends on because every buyer is a little bit different. As far as how savvy they are is Boras you know putting in the sweat equity and being able to do some improvements and changes to their home. I know Walter you and I were just chatting about the nice changes you're doing to your home right. Yeah. Where it that was up to me. No way. So it depends on depends on the owner. OK. But you know to me it is just more cosmetic. You know like right switching out the floors the countertops maybe a fresh coat of paint. That to me is not a lot of items to do. And oftentimes in today's market you have to be a little bit more open to doing some of those changes. The big thing to me though when you mention the fine line between a fixer upper and a cash pit you know make sure that you are buying the home at the value of its true condition. So if there's a lot of you know improvements the home needs because it's really just. Make sure you're paying the worn price not be updated price. So to me it's not a cash pet as long as you're paying fair market value for the home in its current state.
That's a really good point and realize also Joey that some things that might be out of your skill set. Now this is speaking from experience can quickly become your part of your skill set. It just takes you just got to get in there and do it. And I've really enjoyed that. But you know do look out for the things that make you go. I don't really feel like doing that. I have definitely found joy in painting and fixing things up and learning how to you know taking the doors off the hinges and swapping in new hinges and you know just doing some of these things a little bit of light plumbing work even installing new vanities just all sorts of you know things like that that you know maybe couple of years ago weren't in my skill level but now they are.
Now I may have drilled into a water pipe or two during the process that was in the back of my mind I wasn't going to throw you under the bus.
We did it on your own may have done that in the process growing pains you know you're learning Hey I'm not afraid of failure it's how you look it's how you grow Andres right I exactly literally remember to joy you can always hire a professional to you know if you do want to do it on your arm but right now yeah a lot of homes this day and age I mean I feel like you might need a put in a little bit of work to make them you know how you want them. Right. So don't know let's scare you away.
If we had kids though Angie we probably wouldn't have ended up with this home because of all the work it needed. I don't know. Some of these projects I just don't know how I would do them without. You'd have to rope off half the house for safety reasons if you had little kids running around. I would just make things a little bit more stressful when you have you know it's one room that needs to be done then that's a different story. But if you've got kind of a whole house you're going to kind of redo. Well then you got to take all those different little nuances into account. So yeah it's a personal personal thing to think about but I wouldn't say don't be scared of. Now some that needs a little bit of elbow grease as long as you're okay with the costs that will go into it and the time and energy but just go in with eyes wide open as well.
Yeah because I mean most of the time you're not going to find a home that is 100 percent perfect. There's always something you will want to change it just how many of those things are you willing to change. Right.
I will say Joey to overestimate the amount of effort it is going to take to do the repairs though don't make the trap of Welker was just fresh paint that it needs. Really think about it. Always overestimate a little bit because that's kind of we've run into that a few times okay. So it just needs fresh paint in here. Well but it has textured walls or wallpaper and so it's not just a new coat of paint it's some sanding and stripping off of old surface texture ends up being a lot harder. You know to just do it then in reality and then you know then you start noticing other things that you didn't pick up on the initial walk through like OK well the ceilings are freshly painted. But for some reason they didn't cut in the paint. And so now it's very noticeable and it'll it'll bother you and then you'll want to go fix that so. Right. Right. Yeah. It's going to be a few extra little things that come along with it. So just keep that in mind to overestimate the energy that it will take and then you won't be caught by surprise when the time comes. But love questions like that because it's definitely in that camp of never wanting to be in the fixer upper category to all the sudden loving being in that category I'm just You're you're a master at it.
Yeah. I wouldn't go that far but we're learning we're learning as new business on its way. Oh I don't know about that. If it was someone else's time repaired if it was someone else's house I wouldn't care as much. Right. It's fun when it's your house. But throw out having the pay off of enjoying it at the end of the day.
I think we'd take some of the fun that Italy. Right for me. 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 past podcast episodes on Web site read the blog and all the great information including the option to find a home right there on the Web site. That's a Cole realty dot com and you can also call ante with your questions. 9 1 9 5 7 8 31 28.
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