The realm of real estate is fraught with errors, misinterpretations, and misconceptions. Fortunately, I am here to provide you with reliable answers and sound solutions to some of the most pertinent real estate misconceptions!:
Summer is the Best Season to Sell
Summer is often seen as the ideal selling season, but this is not always the case! Depending on market conditions and property specifics, spring and fall markets can often deliver new buyers and successful results.
Your Personal House Value is Correct
Our properties are often our largest financial investments, so naturally we come to find the best in the places we call home. Unfortunately, our personal attachments and skewed opinions can often negatively affect valuations of our own homes, so listening to your Realtor® when they develop a Comparative Market Analysis and understanding the importance of comparables provided is in your best interest (remember that comparables are not meant to produce controversy but instead produce unbiased analyses)!
Open House Realtors Are On Your Side (Working For You)
Open houses are a fantastic opportunity to check out new listings that have piqued your curiosity, but potential buyers can often fall into the trap of oversharing with the listing Realtor® present at the open house. Remember, the listing agent represents the SELLER which means that they will operate in their CLIENTS’ best interest (which could include divulging any and all information you provide them with!).
You Need a Big Downpayment (20% or more)
First-time home buyers can often spook themselves from further investigating a property they’re interested in that has a higher price tag or convince themselves out of the buying process altogether due to down-payments! Downpayments at or above the 20% mark are not common, especially for first-time home buyers, and there are a plethora of other incentives and payment options via mortgages to be able to get you into the home of your dreams!
You Don’t Need An Agent as a Buyer
Savvy real estate investors or those experienced in the business might believe that they are better off undergoing the buying journey alone. However, not only can an agent help guide you and protect your interests during the process, but the buying agent is often compensated by the sellers!
Home Inspections Either “Pass” or “Fail”
Home inspections can cause great concern on both sides, and clients can make the mistake of thinking they require a “passing” grade or else failing the home inspection will halt the deal or cause serious repercussions. The reality is that home inspections are simply designed to provide any and all pertinent information regarding a property’s condition, the solutions to any issues that come up are always negotiable (unless of course the buyer decides that the home inspection was not satisfactory - but that decision is in the hands of the buyer NOT the home inspector!).
Renovations Guarantee a Higher Sale Price (Or the Amount You Invested is Equal or Greater to the Amount You Will Getting Out of It)
There are numerous renovation options in a home that homeowners often elect to undergo, such as bathroom renovations, kitchen improvements, porch expansions, and more! The problems arise however when clients believe that such renovations always convert into more money come time to sell. Depending on the improvements made, they don’t always necessarily provide a return on investment or speed up the selling process. To best understand the possible effects of specific renovations, contact a Realtor® who can evaluate your home, draft comparables, and determine how any changes might influence your sale!
Online Estimates (Like Zillow’s Zestimate) Are Accurate
Before a person even considers listing their home, people often make their way to the worldwide web to produce a fast answer to the question “how much is my home worth”? Unfortunately, online estimates only cause complications in the selling process as clients often place too much emphasis on the results provided. In short, similar to many business processes, accurate assessments are best delivered by dedicated professionals (so trust your friendly neighbourhood Realtor® to provide you with a bonafide CMA to generate your most competitive listing price!).
Overpricing Leaves Room to Negotiation
Sellers tend to believe that by listing themselves at a higher price, it will allow them to negotiate with buyers towards a price that is satisfactory to them (for example, if the seller wants $500,000 for their property, they may expect to list their home at $510,000, $520,000, or more). The problem with this line of thinking though is that it can sometimes prevent the property from appearing in certain home searches (such as if a buyer is looking for properties up to the $500,000 mark) and deter possible buyers from even submitting an offer in the first place! It is important to remember that listing at a competitive price means finding a price that best matches what your property provides, and more often than not the price that your home is purchased at will be in line with local current market data!
You’ll Get Rich Quick Through Real Estate
Real estate can seem like a shrewd business investment that will provide quick returns and appreciate as long as one holds a property. The reality unfortunately is that there are a plethora of variables to consider that may hinder appreciation on a real estate property and furthermore gains on real estate investments often slowly come to fruition. Real estate is a calculated art form, but taking time to develop your understanding of the real estate realm and finding a real estate representative that demonstrates the ability and experience to accurately assess property values and market trends will give you the best chance of success!
Hopefully these examples provide some much needed insight onto real estate’s most commonly seen myths and equips you to take your next best step in the expansive world of real estate!
