The Top Real Estate Myths, Debunked!
You can’t (and shouldn’t) believe everything you hear in Real Estate. While some stories are right to a certain extent, many are completely false. In this post, we’ll uncover some of the biggest Real Estate myths out there…and debunk them!
Price the home over market value so the seller can negotiate.
Pricing your home too high might sound like a good idea. You know that buyers will want to negotiate the price and often make offers that are under asking price. It makes sense that you would want to list your home at a higher rate.
The issue with this is that you could deter buyers from even looking at your house. If your asking price is way over the price of other homes in your area, some buyers won’t even bother to take a look. Pricing your house at a competitive rate might help you sell your house faster.
A house sitting on the market is easier to negotiate.
Some people think that a house sitting on the market for long periods of time will be easy to negotiate. But, the opposite could be true.
The house could be sitting on the market because the layout or state of the house isn’t right for buyers. It could also be that the location isn’t favorable. Maybe, there is some unknown detail that has potential buyers running for the hills. Another more likely option is that the homeowners have priced the house too high and aren’t willing to budge.
Start low when making an offer on a home.
Making a low offer on a home may seem like a good idea. But, if you come in way under asking, you risk offending the seller. If they feel your asking price is too low, they may refuse to negotiate with you further. Then there will be no chance of you getting the hosue.
If there are multiple offers, it’s better to come in with a competitive asking price. You want the seller to think you’re serious about buying their house.
The Agent makes too much money on commission.
One of the biggest complaints you’ll hear in Real Estate is about how much a Real Estate Agent makes. Yes, it’s true they make a commission off selling your home. What many people don’t understand is WHO really gets that money.
It doesn’t always go directly to the Agent. Most of the time, it’s split between the Agent, Broker, and any other Agent’s that were involved in the sell.
Now, think about everything an Agent does for you when selling your home. They research your market, list your home, and show it to potential buyers. They answer emails and phone calls every day of the week. They also have to spend time negotiating on your behalf, speaking with the inspector, and guiding you through the loan process.
Once that commission check is split, they also have to pay taxes and business expenses from that. When it’s all said and done, the majority of Real Estate Agent’s make the same amount you do every month. The only difference is, the checks don’t come at a steady pace.
Don’t refuse the help of an Agent because they make commission off your home. Read the next point to find out why.
Selling or buying a house yourself saves money.
Going it alone in Real Estate is never a good idea. You might save money by not paying commission to the Broker, but you could end up spending more throughout the entire process. If you price your home too high, it could sit on the market for a while. If you price it too low, you could lose thousands of dollars.
The process of selling or buying a home is very stressful. If you don’t know the market and the process, it’s always a good idea to hire a professional.
You don’t have to “fix up” your home to sell it.
Yes, it’s true that some houses are listed “as is” and have no trouble on the market. Others sit and sit, never seeing a potential buyer. If your home is in need of repair, fix it. You can actually save money by doing this. A home with a new roof is more appealing than a house missing half the roof.
Some home repairs can also add value to your home. If you don’t need any major renovations, just make sure you clean up before buyers view your home. The biggest turn off for buyers is walking into a house that is dirty.
As you can see, not everything you hear about Real Estate is true. Don’t fall for these myths when making the decision to buy or sell your home.
What are some of the biggest Real Estate myths you’ve ever heard?