With high-technology and online convenience within our midst, it’s not surprising that most people have been turning to the Internet for guidance in almost anything imaginable– even in buying and selling a home! The truckload of information swirling around out there can be, in fact, quite overwhelming, but have you ever asked yourself how much of it is good advice– and how much of it is URBAN LEGEND?
Buying or selling a home may be the biggest financial decision you’ll ever make in your life, so any misinformation or bad advice can be detrimental to your transaction– and your financial situation! Check out these nine most common real estate myths and make an informed real-estate decision every time!
FSBO will save you money
One of the biggest myths commonly seen online is that selling your home yourself (For Sale By Owner) will help you save money, most specifically on commission costs.
While it may be true that not hiring an agent means zero commission costs, selling a home isn’t as easy as sticking a For Sale sign on your front yard and snapping a few photos of your home. In fact, FSBO sellers often risk losing money due to several factors like pricing the home too high, pricing it too low, making uninformed decisions about their transactions, etc. Hiring an agent means asking a professional to price your home correctly, negotiate the most favorable offers, and have more access to a whole host of buyers.
Connections, better money return, and less transaction hassle– sounds good, doesn’t it?
No agent = Better deal
Does buying a house without an agent save you money? Well, the short answer is No.
Agent commission for both the buying and the selling agent (if there is one) is shouldered by sellers. That means that as a buyer, your agent’s services are free, the reason why almost all buyers choose to use a realtor.
Of course, let’s not forget that working with an agent as a buyer will also have incomparable benefits like better price negotiations, access to the latest listings, and a better chance at finding a home that meets your budget and needs– and the list goes on.
Agents are all the same
Remember that there’s no such thing as a cookie-cutter agent. Realtors have different personalities and work ethics, and they all come with unique skill sets, specialties, and experience levels. Some real estate agents prefer to work in a team, whereas others assume a one-stop-shop role for their clients. Some have a background in teaching and excel at guiding first-time buyers and sellers, and some have law backgrounds and know their way around legalities.
Having said this, whether you’re buying or selling, it’s vital to pick the agent that’s right for you. They will be representing you during one of the biggest transactions in your life, so it’s better to go for someone that you like, trust, and that you believe will have your best interests in mind.
Online resources can do it all
While many major real estate sites give you general information about buying and selling a home, provide an estimated price of your home and an approximate monthly mortgage payment, these tools aren’t the end-all-be-all of your search or sale.
Why is that, you ask? Often, real estate sites are based on algorithms, and algorithms are only as accurate as the data they pull from. While the date given may be correct, these sites are still missing part of the picture. Unlike an agent, these sites haven’t visited the home in person, and they don’t have “boots on the ground” knowledge that an agent who is well-versed in the local market will.
Always turn to your agent for more in-depth and personalized information.
Seeing a home online means it’s available for purchase
Major online real estate sites are aggregator sites, which means they gather as many listings as possible, both from the MLS and from public record data. However, these sites aren’t always the most up-to-date, depending on how often they refresh their data. These sites also don’t delete a listing once it’s sold, which leads to many “off-market” listings — homes that aren’t actively for sale.
Always pay attention to the status of the homes you’re looking at online. A listing labeled “active” or “new” is still likely fair game, though your best bet is to always check with your agent, who has the most up-to-date information on a property.
Buying or selling a home means it’ll be easier the second time around
No, buying or selling a home isn’t like learning how to drive a car. These buying and selling processes change over time, and the local market is constantly fluctuating. Therefore, these changes can lead to a totally different buying or selling experience than the one you had in your last real estate transaction. You may feel like a first-time buyer (or seller) all over again, especially if it’s been a while since the last time you went through the process.
The key to a smooth transaction? You guessed it— get an agent to help. Between continuing education courses and being involved in the industry day to day, these realtors have the most up-to-date knowledge.
A higher price will give you room to negotiate
We know you want to get as much money as possible for your home, but always remember that selling a home is not a “swing for the fences” type of situation. Scoring big in real estate has more to do with being realistic than being bold.
A too high price for a home drives away potential buyers. If you’re pricing your home high in the hopes of negotiation, remember that if your home is so expensive that buyers don’t even bother looking, there will be no one to negotiate with. It’ll also be an especially BAD tactic if you’re in a buyer’s market season when inventory is high and buyers have plenty of options to choose from, meaning they’re more likely to skip right over an overpriced home.
In conclusion, it’s better to set a reasonable price that will draw in the right kinds of buyers and offers.
Home renovations before selling will get a dollar-for-dollar return
Some are tempted to do a few renovations on their home, thinking it’ll be worth the investment when they sell it eventually. Unfortunately, it’s not always the case– not all home improvements generate an equal return on investment.
Of course, that’s not to say those pre-sale renovations are a bad idea. Even if they don’t get a dollar-for-dollar return, these updates make a home more appealing and help it sell faster, which is a bonus in and of itself. So, if you plan to sell your home soon, be sure to consult your agent before you undertake any major home improvement projects. Your agent can advise you which renovations and repairs will generate a higher sale price and which aren’t worth your time.
Agents just want to make that sale
While an agent’s ultimate goal is to help their client buy or sell a house, they’re more than making a commission or turning a “For Sale” sign into a “Sold” sign. Think of them as guides than salespeople. Most realtors are in it for the long haul, from the first point of contact to the moment you’re handed the keys to your new house– and beyond! Stay in touch with your real estate agents and let them know how you’re enjoying your new home. At the end of the day, they’re people helping other people make a well-informed, life-changing decision.
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Buying or selling💲 a home🏠 may be the biggest financial decision you’ll ever make in your life🤑, so any misinformation or bad advice can be detrimental to your transaction❎– and your financial situation!😓
✅Check out these 9⃣ most common real estate myths and make an informed real-estate decision every time!🗒
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