Real estate is an industry full of myths floating around on the internet, in the neighborhood, and on the real estate market. It pays to be an informed consumer who is wary of the misconceptions. A buyer or seller is bound to get a lot of advice from friends and family who want to help. Some advice is useful, while other information can be misleading. Here is a rundown of the 4 most common real estate myths and why you should avoid them:
- “You don’t need a real estate agent”- There is a school of thought that believes that you can save money on the realtor commission and sell the house yourself while raking in a profit. Even if you forgo a seller’s agent commission you will still need to pay for the buyer’s agent commission, essentially shorting yourself in the process. Some people risk to deal with a For Sale by Owner (FSBO) which opens the transaction for a lot of things that can go wrong. Spare yourself the headache and the paperwork, hire a professional real estate agent to list your house, you will be thankful all the way to the closing.
- “Price your home high with room for negotiation”-All sellers want to get the most ROI, however some believe that by pricing the home higher, it will allow more wiggle room for negotiation. This strategy is wrong as setting the price too high might put the house at risk for sitting on the market. A long time on the market makes a house more undesirable. In fact, a real estate website has found that the first week that a house goes on the market it receives four more times the number of visits than a month later. In real estate, time is money, so get your real estate agent to do a comparative market analysis on the prices of similar homes in your neighborhood and price accordingly to the market.
- “A new build doesn’t need an inspection”- Part of the thrill of buying a new home is that everything is shiny, works well, and the paint is still fresh. A buyer might be tempted to skip on the inspection of the building thinking, “if it is a new build, what could be wrong”? However, the buyer who is waiving the inspection contingency in the contract is assuming a lot of risk. There can be small and large problems that come up with a new build when a detail-oriented professional does an inspection. It is in the buyer’s interest to spend the money on an inspection in every real estate purchase. This guarantees that the new build that he is purchasing is in new, working condition.
- “Nice homes in good neighborhood don’t need staging”- Think of staging as a facelift for your home. Hiring a professional stager is beneficial, even for a nice home in a good neighborhood. The eye of a professional stage will get the house photo-op ready and perhaps see how things can be improved that you may miss. Staging will take care of little blemishes like chipped paint and clutter and make sure that the home looks its best. In terms of listing the house online, professional staged photos go a long way in promoting a listing. It has been found that homes with professional listings photos sell for thousands more dollars and faster. A few hundred dollars for a fresh coat of paint and a professional home stager go a long way in a successful home sale.
Finally, the real estate myths are numerous but easy to avoid. Misconceptions like forgoing the real estate agent to waiving the inspection can be dispelled with research and communication with a professional real estate agent. Therefore, take the time to become an educated consumer in the real estate market.