Real Estate Myths Debunked

Buying or selling a home is not something most of do often.  They may only do it a few times in their lifetimes.  When they do decide to buy or sell their home they find there are a lot of advice out there.  Not all of this advise is correct.  Here’s a list of real estate myths which I’ve debunked.

List your home for sale higher than what you anticipate to get:  Pricing a property too high may result in it being stagnant.  A stagnant property might not receive any offers at all.  Yes the price of a property can be reduced.  Many buyers tend to be wary of homes that have sat on the market for a few weeks.  In our market of low inventory homes which sit for too long often receive in low offers, resulting in a lower net price to the owners.  Check my video about pricing your home strategically here.

Renovate your home before you list it:  Sometimes renovating a home is not the best use of money.  Small fixes and cosmetics such as paint can be beneficial.  Big renovations such as kitchen and bathroom remodels rarely recoup the amount spent on them.  A buyer may not have the same style as the owner.  According to studies in Remodeling Magazine most large renovations only recoup about 67.8% of the money spent on them.    Spend your money wisely on cleaning up landscaping and a fresh coat of paint on the interior.  Read a post I wrote with tips to sell your home now for more ideas.

The Market will only go up:  We all remember the Great Recession of 2007 right?  The real estate market is cyclical.  Economist Robert Shiller did a study showing the market adjusted multiple times from the 1890’s.  Follow this link for a chart of Shiller’s home price index numbers.  Better to buy a home with a monthly payment you know you’re comfortable with and be happy.  If the market goes down that’s ok in the past the market has bounced back.  It’ll likely bounce back again.  Meanwhile you’ll enjoy the security of know you have a home for your family.

Getting pre-approved for a loan is done after find the perfect home:  Getting pre-approved for your loan is always best done before you go shopping.  When you get approved for a loan you’ll know exactly how much you can afford.  You’ll know what price range you should be looking in.  When you do find the right home you can make an offer on the spot.  In this market moving quickly and intelligently is mandatory.  If you look before you’re approved you may see the perfect home only to find out you can’t afford it.  Contact me today to get the approval process started.

Buying or Selling a home is cheaper without a Realtor:  It is true you can buy and sell real estate without an agent.  For a buyer there is no advantage to not working with an agent.  The commission is built into the sales price.  If you go it alone the seller’s agent gets the full commission and has no fiduciary obligation to you.

Some sellers successfully sell their homes without a Realtor.  They will need the skills to market their home effectively online, negotiate with the buyer, and handle any challenges which may arise during the transaction.  Buyers may want a substantial discount because you’re not paying a commission.  It may lead to a lower net profit to the seller.  It is possible to sell on your own, but very very difficult.  Want an evaluation of your home’s value?  Find out now!!

Buying and selling real estate is a complex process.  There are many more challenges then listed here.  If you’re thinking of buying or selling contact me today to develop a strategic plan.

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