Don't fall for the myths of buying and selling a home
Barbara Ballinger
The Toronto Sun Real Estate

Not everything you've heard about buying and selling a home is true, even if you've been through the process. Markets change. Styles of houses go in and out of fashion. Neighbourhoods become chic or, just as likely, lose their status. Amenities gain in favour, then become so mainstream that they're no longer a selling point, such as a two-storey foyer or master bathroom with whirlpool tub.

So what are the prime myths that people buy into most often these days that cause prices to soar or plummet?

MYTHS ABOUT BUYING
Never buy the biggest or most expensive house on a street.
True. If you buy the most expensive house, you're unlikely to realize much appreciation, but you will help your neighbours benefit. At the same time, don't buy the least expensive house on the street since you may have a hard time selling a two-bedroom home on a street of four- and five-bedroom homes.

In tight markets, don't expect to negotiate much or you may lose the house.
True, but remember that a contract to purchase is just part of a recipe. Someone with the highest bid may not get the house since many elements go into a winning bid, such as the timetable for the closing and the length of the mortgage contingency.

If you find a major problem shortly after you buy and the home inspector you hired didn't find it, you may be able to get your money back.
True, if the problem represents a detectable structural defect. Most inspection forms include a disclaimer saying the inspector is only responsible for visible defects. If it's not visible, you may have a tough time.

Asbestos and mold represented a lot of hype a while back and few homes today have these problems.
True and false. There's still a lot of concern about mold, particularly in warmer climates and in newly built homes because they're so airtight. On the other hand, asbestos is not much of a problem today.

If you read home ads and scan the Internet, you'll find all available properties, so you really don't need a real estate salesperson.
False. You don't need a salesperson joust to show you what's available, you need them for knowledge about the market in which you're interested. Salespeople have inside information on whether any offers have fallen through because of inspection reports, for instance. They also help a potential buyer through the entire process, from finding available properties to getting a home inspected, securing a mortgage, participating in the final walk-through and attending the closing. Many salespeople think they're done when a contract is signed, but that's when a good salesperson's job truly begins.

Vacant houses sell for less money.
False. Many homes look better and bigger when sellers have moved out and it's often easier for buyers to imagine how the house will work and look without someone else's paraphernalia. A vacant house may also be available sooner.

MYTHS ABOUT SELLING
The first offer will always be the best and the highest.
True, for the most part, since many buyers know what's new on the market. They're more likely to structure a stronger offer before someone else does, though strongest may not always mean highest priced.

You have to have a lockbox these days to attract buyers and their salespeople.
False. Many homebuyers and salespeople won't find them that essential. What is necessary, however, is a virtual tour. Be sure you have a good virtual tour with professionally shot photos of the exterior, plus major public rooms, master bedroom, and any special features. Also, be sure the home is streamlined and clean.

You need to stage your home so everything looks decorated, with clean carpeting and freshly painted walls.
True. Generally, what helps sell is a neutral setting and a staged setting that doesn't look dated. You don't want 1970s wallpaper or laminated built-in shelves. Also be sure rooms don't look too overcrowded or empty and try to have some fresh flowers or plants. Any décor that is overly personalized, like too many collectibles or family photos, may also turn away buyers.

Your home must be immaculate when people come through and you shouldn't be there.
True. Simply put, clean sells. Sellers also can do a good job of underselling their homes because they don't know what the buyer's issues presently.

You shouldn't have too many exclusions.
True. Have no more than three exclusions because each one becomes a minus for the scale. Exclusions that are acceptable, depending on the market, are appliances, vintage chandeliers, curtains that match a bedspread, etcetera. If you have too many exclusions, you send a signal that the buyers are buying the house, but you're stripping it of hat they hoped to get. Making certain items negotiable also isn't wise since it may fuel acrimony.

If a house sells in a few hours, it was underpriced.
False. The house was priced right. What it means is that buyers and sellers had the same perception of the home's value. You never know how many other buyers are looking at a single time and price reflects the strength of the market at that particular juncture.

(Source: Toronto Sun, www.torontosun.com) Thank you for choosing Toronto Real Estate Info! For more FREE Buyer reports, click here. For more FREE Seller reports, click here.