I thought I would take some time and offer some truths on common misconceptions in the world surrounding Real Estate. I have heard many things Buyers and Sellers have shared with me over the past 40 years that might fit more into “wives’ tales” or just plain silliness. Let’s look at a few of the ideas that are shared with me on a regular basis.

If I list my home with you and you bring me a full price offer, I owe you commission.
This thought had its truth many years ago. Prior to starting my career in 1986 there was a time when an agent could claim commission if they procured an offer at full price. If my memory serves me, that ended my first year in business. A commission only gets paid to an agent for the successful completion of a transaction.

If I list my property for sale and the listing expires, I can’t list my home with an agent for 90 days.
This is a misconception. When a Seller lists their home for sale with an agent, there is a clause in the agreement called a “holdover” clause. This clause is included with an agreed upon number of days that protects the agent once the agreement comes to an end. This protects the agent in the case that they find a Buyer who chooses to wait until the home comes off the market and offers to the Seller directly. The effect of this clause is canceled when another agent lists the home for sale. (This can be as soon as the day after the listing expires.”)
Commission rates, co-operating commission to a Buyer agent and length of the listing agreement are fixed.
All parts of a listing agreement are negotiable. When an experienced agent meets with a potential Seller, they cover the above items and agree upon a set of terms that both agent and Seller agree upon. The goal has always been to sell the property as fast as possible, for the most money and with the least inconvenience.

The best time to sell a home is in June/ July when the gardens look their best.
Typically, the best months to sell are February and March. Although this seems counterintuitive, when most Sellers feel the summer is the best time to sell the numbers prove this incorrect. In February 2023, there were 292 homes for sale (Oshawa, Whitby and Clarington) and that month there were 253 homes sold. By March the number of homes for sale jumped to 338 with 351 homes sold. Once we get into the early summer months, the number of homes for sale skyrockets. In July, there were 532 homes for sale with only 348 sold. Selling early means that you take part in an active selling season with fewer homes competing for the Buyers.

When to sell part 2. The best time to sell my house with an inground pool is once the pool is opened in June.
Buyers who wish to own a home with a pool start their search early. What they hope to do is purchase a home in the late winter/ early spring and take possession of it as the pool is opened allowing for a full season of water activity in the year they bought the property. I remember looking like a crazy person due to the fact I bought a convertible in October and was so excited I drove around with the top down as it was lightly snowing. It would have been a far better decision to buy a convertible early in the year.

If I decide to renovate my home prior to the sale, I will get more back that I spent on the improvements.
This is partly true/ partly false. Renovations can cause the home value to increase, however they have to be specific improvements that a Buyer is willing to pay for. Quartz counters, backsplash, paint, upgraded lighting typically will get an excellent return on investment, however things like new toilets, door hardware, blinds or draperies tend to offer little in return. When a Buyer looks at a home, they expect HVAC systems that work, shingles that have life in them and windows that do not need immediate replacement. A new gas furnace that is over $6,000 to install will not see that same return.

Renting items like furnaces, air conditioning units, water filtration systems are a good selling feature.
Locally, Buyers expect to purchase homes where the HVAC systems are owned and not rented. Rental companies may suggest that new equipment that is rented are sought after by Buyers. I have never found this to be the case. I have had some clients that were paying $400/month in rental payments. This is a challenge for a Buyer to assume. The only common rental is a hot water tank.

Solar panels will increase the value of my home.
Again, this is something that is just not correct.  I sold a home a few years ago where the Seller had solar panels installed and took an early buyout from the panel company leaving only $250/year as income from the panels. We had a difficult time selling the home and a few years later, driving by, I noticed the panels had been removed.

There is no need to stage my home as a Buyer will move in and make it their own.
There is a sliver of truth in this statement, however homes that look like they need repairs, renovations and updates tend to sell far below area averages. Buyers are so used to seeing HGTV with homes that look perfect and in the event they find a home needing massive renovations they tend to discount far more than the value of improving the home.
 
When I hear some of these comments, it reminds me that Buyers and Sellers, who may move once every decade come to the selling and buying process like first timers. It really takes a full time local experienced agent to help navigate the many decisions necessary to properly prepare a home for sale, develop a marketing package that attracts qualified Buyers. It also takes expertise to “jump through the hoops” necessary to guide a Buyer from dreaming of a home looking through the windows at an open house to looking out of the window of the home they fell in love with.

If you have questions or are curious what might be a tall tale or what might be accurate information about buying or selling a home, I can be reached at lindsay@buyselllove.ca or 905-743-5555.
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