When it comes to buying or selling a home, it’s important to get your information from a trusted source. Unfortunately, there is a lot of misinformation and bad advice online, and if you don’t do your research, you could be caught off guard. Many myths about real estate can be easily debunked with the right information. To help you stay informed and avoid making costly mistakes, here are ten common real estate myths debunked.
Real Estate Myth 01: It’s not necessary to get preapproved.
It is beneficial to get preapproved before beginning the home-buying process. Not only will it lets you know much you can afford, but it will also demonstrate to sellers that you are serious about buying and have the financial means to do it. Contrary to popular belief, getting preapproved won’t hurt your credit score.
Real Estate Myth 02: If you don’t have children, the school system isn’t relevant.
When purchasing a home, consider looking for one with good schools, even if you don’t have kids. Buying in a desirable school district will add to the resale value. This is why schools are an important factor for many homebuyers.
Real Estate Myth 03: Realtors only show homes listed with their own company.
Realtors are bound to a strict code of ethics, meaning they must show you any and all homes that fit your criteria, regardless of the listing company. As long as the property is listed in the MLS system, you have the right to view it.
Real Estate Myth 04: When bidding on a home, offer a lower price.
Making a lowball offer on a house can be risky in a competitive market. If there are multiple offers on the house, submitting a lower offer runs the risk of not being taken seriously and may not result in a counteroffer. Additionally, low offers can come across as disrespectful to the seller and can make for an unpleasant transaction. Therefore, it is best to make an offer that is close to or at the asking price.
Real Estate Myth 05: When pricing your house for sale, set it high.
When it comes to pricing your house for sale, it’s best to list it at a price that is competitive and fair. An overpriced house can be a turn-off for potential buyers and result in fewer offers. To make sure your home grabs the attention of buyers, it’s best to price it realistically so that buyers know they are getting a good deal.
Real Estate Myth 06: To make more money, renovate it beforehand.
Before deciding to renovate your home when selling, it is important to take into account the cost of the improvements and the return on investment. Minor repairs, decluttering, and staging may be all you need to get the best possible price. In today’s market, many buyers are looking for more affordable homes and are willing to do the repairs themselves.
Real Estate Myth 07: If a home is in perfect condition, an inspection isn’t necessary
No matter how new or attractive a home may appear, it is always important to get a professional inspection. This will alert you to any potential issues that need to be addressed before you take possession. Without an inspection, you could be stuck with expensive problems in the future. It is wise to either ask for the problems to be fixed before you buy the home or to have the purchase price lowered to cover the cost of the repairs.
Real Estate Myth 08: Buying is a better option than renting.
It’s not always a given that buying a home is better than renting one. Many variables come into play when considering this decision, including your financial situation, stage in life, and future plans. To make the best decision, it is important to crunch some numbers and compare the costs of each option. You may discover that, depending on your lifestyle and goals, renting could be the right decision for you.
Real Estate Myth 09: Realtors earn a lot of money.
Real estate agents do not have a set salary but instead are paid on commission. This commission is typically split with the brokerage firm that employs them, as well as covers expenses such as driving, hosting open houses, doing research, etc. Furthermore, the commission they receive is not guaranteed, as it is open to negotiation.
Real Estate Myth 10: Having a real estate agent doesn’t offer any benefits.
Having a real estate agent can be a huge advantage when buying or selling a home. They have access to homes for sale that you may not have known about and can use their expertise in order to negotiate the best price possible. They can also help guide you through the paperwork and complex process of buying or selling a property. Without a Realtor, you may find yourself struggling to navigate the market, so having one in your corner can make all the difference.