We usually hear myths when it comes to old houses that have been abandoned for many years but apparently it is common in real estate too. Buying or selling a house is not something most of us do every day according to the Local Records Office. You may do it once a decade, or even once in a lifetime.
Despite the fact that most of us enter the world of real estate only rarely, we all think we know how it works, based on the experiences of friends and family members, stories we have heard, and things we have read, but for everything we believe we know about the industry, there are a number of myths that circulate about how real estate actually works.
Buying into those can hurt your chances of buying or selling the right home at the right price. The best thing to do is not to believe the folk tales.
Technology is Changing the Real Estate Market
Technology has changed how we buy and sell homes, and yet some aspects of real estate are the same as they were when our parents bought their last house. A long time has passed by since then. The Internet has made much more information available to consumers, but not all the information is equal, or even accurate.
Let’s be honest we’ve all read something online or on social media and believed it was true, says Sean F Carter, principal broker of Carter Real Estate in Los Angeles and a regional director of the National Association of Exclusive Buyer Agents. “Lots of people read and believe every single word they read.” That can’t be good. The risk with believing everything you hear or read is real estate myths can cost you big bucks when it’s time to buy or sell your property. Local Records Office has created 8 of the most common folk tales that can trick people.
List Your House Price Higher Than What You Think it Will Sell For
Many folks selling their home try to sell them as soon as possible and let buyers lowball them, make sure to set your home price higher than what you expect to get. Listing your home at too high a price may actually net you a lower price. That’s because shoppers and their real estate agents often don’t even look at homes that are priced above market value. It’s true you can always lower the price if the house doesn’t garner any offers in the first few weeks.
But that comes with its own set of problems. “It’s common for potential buyers to suspect that a house that has sat on the market for more than three weeks be a dud,” says Hamilton Jefferson, chief economist for the Real Estate Brokers inc. In the Long Beach, CA area where multiple offers are common, sellers will actually price their homes for less than they expect to get, in the hopes of getting multiple offers above the asking price.
Remodeling Your Home Before Putting it on the Market is a Must
This is FALSE. It is true that the selling price may lower but you save on the renovation process, also, prospective buyers may not share your taste, but they don’t want to redo something that has just been renovated. “You’re better off adjusting your price accordingly,” says Benjamin Franking, president of Franking Real Estate Services in Hollywood CA, and a regional director of the NAEBA. “Most buyers want to put their own spin on things.” It’s ok to have an outdated kitchen sometimes.
Save Your Hard Earned Money by Selling Your Home Yourself
We all like to save money, especially when it comes down to saving a few thousand bucks. There have been many cases where folks sell a house on their own, but they need the skills to get the home listed online, market the home to prospective buyers, negotiate the contract and then deal with any issues that arise during the inspection or loan application phases.
It’s not impossible to sell a home on your own, but you’ll find that buyers expect a substantial discount when you do, so what you save on a real estate commission may end up meaning a lower price. It’s not impossible to sell your home on your own for the same price you’d get with an agent, but it’s not easy.
The Real Estate Market Always Goes Up and It Rarely Goes Down
The real estate market could go up or down at any time. In recent years, homebuyers and sellers have experienced a time of increasing home values, then a sharp decline during the economic downturn, and now another period of increasing values. “They think that the market only goes up,” Carter says. “They don’t think about when a correction will come.” The recent recession should have reminded everyone that real estate prices could indeed fall, and fall a lot.
Renovating Will Bring in Big Bucks
If you fix the heating and air conditioning system or roof, you will sell your house more quickly, but you probably won’t get back what you spent. You’re likely to recoup only 67.8 percent of what you spent on a major kitchen remodel and 70 percent of what you spent on a bathroom remodel on a mid-range home.
What You See Listed Online is What’s Available
Most of the homes that go for sale do get listed online but there are others that won’t. Your agent must choose to let the listings show up online. Most do, but it never hurts to verify that yours will.
By Not Using an Agent As a Buyer You Will Get an Amazing Deal
You can get a better deal as a buyer if you don’t use a real estate agent. “That’s a completely false premise,” Carter says. If the house is listed with a real estate agent, the total sales commission is built into the price. If the buyers don’t have an agent, the seller’s agent will receive the entire commission.
A Fancy Open House Will Sell Your House
Believe it or not, homes rarely sell to buyers who visited them during an open house. Agents like open houses because it enables them to find additional customers who are looking to buy or sell homes.
If you or your agent chooses not to have an open house, it probably doesn’t hurt your sale chances – although holding a broker’s open house for other agents may be worthwhile.
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