Seven Suburban Real Estate Myths and Legends

At a time in human history when information and misinformation are often impossible to differentiate, it is important to admit that we make a lot of inaccurate assumptions. Every field has it myths. From the beginning of time, we are taught to have a critical mind and to challenge assumptions. That is our charge today: Obviously we need to start somewhere: So what are suburban legends or myths? According to Wikipedia,
An urban legend or an urban myth is a form of modern folklore consisting of stories thought to be factual by those circulating them. The term is often used to mean something akin to an "apocryphal story". Like all folklore, urban legends are not necessarily false, but they are often distorted, exaggerated, or sensationalized over time. A suburban myth or legend is just in a different locale, a suburb, like East Greenwich.  Remember these are not necessarily false, but they are exaggerations. Here are some good ones for suburban Rhode Island Real Estate:

1. New Yorkers or Bostonians will pay more than fair market value for MY house. When preparing to list a house, the best agents will evaluate ‘comparable sales’ as part of an analysis to help the seller determine the list price. Elements include, number of active, competing listings; pending sales; sold sales; mortgage interest rates, governmental regulations, absorption rates, (how many months will it take to sell of the existing inventory based on the current rate of sales.) etc. Often when a seller is disappointed with ‘fair market’ value, he or she insists the property be listed well above reasonable to sell to the one ‘uniformed, price unaware, New Yorkers. Now one might argue that there just might be basis for making that assumption; it is true that many are Yankee fans and some are Giants fans, but that nostalgic exuberance does not carry over to home prices, even when they are coming from ‘uber-wealthy’ Manhattan. In short, Boston and New York home buyers will not over pay for Rhode Island real estate, even your home.
2. If I wait long enough, I will get my price when the market catches up. This may have been true for a while in the early and mid parts of this decade. When the market is correcting, the gentler word for home prices dropping; you will need to wait a very long time. It may in fact be a very, very long time until we pass the water mark of real estate values two and a half years ago. Additionally, if your house is on the market for the four or five years, it is even more unlikely that you will sell if for more than fair value. The longer on the market, the less likely you will sell it at a premium price. Simply said price matters. A well price property will sell. One that is overprices is unlikely to find a new owner. This market is very impatient with sellers who are nostalgic with price, say 2005.
3. Buyers will look beyond repairs, decorating, or ‘deferred maintenance.’ It is amazing how many people say foolish things about buyers: The leaking roof does not matter; it is only a little leak. The toilet does not work, but the buyer will never notice. If you bake cookies or an apple pie, the buyer will never smell the septic system that is backing up. Truth be told, most buyers in 2008 have neither the patience nor the money to make a sellers repairs. There are plenty of houses on the market that are in great condition that will sell first.
4. Everybody will love my dog. There are over 75 million dogs in the United State in 45 million households. We are a nation of dog lovers. Well not necessarily. One of the most common complaints and objections of potential homebuyers is the evidence of animals, most often dogs. If you are not a dog owner, or rather a dog lover, having Bruno sticks his nose in the buyer’s butt or groin is not a good closing technique. Most buyers will not enjoy your dog. They either have their own or do not like them. It is not personal, it just is. I know Bruno does not bite, but the buyers’ fear is not perception. It is real. Yes I too have been bitten by a Newfoundland.
5. The agent who is not selected to list the house will sell it for the competing agent who obtains the listing.. Real Estate is intensely competitive. Many agents work on a contingent fee. If they sell the house they get paid. If they do not, they will not earn a fee. Sometimes when a seller says that they have selected another agent, they close by saying but you can always earn a fee by selling it for the competing agent. The operative word is ‘competing.” The non-selected agent is committed to selling his/her own listing, by contracted fiduciary. Only after they have tried unsuccessfully to close a potential buyer on one of their listings, will they move onto others, but not necessarily your, particularly if it is not priced right. There is a major oversupply. Multiple Listing is a great broker to broker network for cooperation and compensation, but it amplifies and highlights competition. Sold signs are one of the best ways to get future listings. The non-selected agent will want to sell his or her listing first so the sold sign is one on of his/her signs.
6. Which brings me to one of the biggest myths: a great real estate agent can ‘make a buyer’ purchase something they do not want. Great agents are masters at pricing, positioning, pursuing, and persuading potential purchasers. It is rare that a great agent can keep a transaction together through closing, if the buyer does not genuinely want the property. A great agent works tirelessly to identify and introduce a home to potential purchasers. For this to work effectively the buyer must be ready, willing and able. (ABLE has been the biggest challenge lately).
7. Houses sell themselves. This may have been true for a couple of months at the peak of the market, and maybe not. This market requires aggressive marketing, strategic pricing, web-centric marketing, and high energy commitment. If you look at what is selling right now, it is the result of a convergence of marketing talent, careful pricing, and unrelenting Realtor effort. While on one hand experience has major value in this market, it is also true that quick response is important. The National Association of Realtors completed a study that many elements are important for effective marketing, but among the most critical is response time. Often the person who makes the sale is not necessarily the agent with the most experience, best web presence, best logo, most awards, best looking, etc., rather it is the first responder. That needs to be repeated: The first responder most often makes the sale. It is important to have a responsive agent, who is available not merely to market the home, but to available to answer questions and to show the property. Even with digital presentation, the human touch of a Realtor is a very valuable element is selling a home.


We will share other myths and legends with you, but this gives you some good examples. If you want to share more with me, please share them here on my blog: www.phippsrealty.blogspot.com