Despite the fact that most people enter the world of real estate only rarely, we all think we know how it works. Whether it’s based on the experiences of friends and family members, or stories we’ve heard, it’s easy to fall under the assumption that the sector is easily understood.
For everything we think we know about real estate, however, there are many circulating myths about how it really works. Here are a few:
Price Your Home Higher Than You Expect to Get
Shoppers and their real estate agents often don’t look at homes that are priced above market value. While you can always lower the price if the house doesn’t garner offers in the first few weeks, that comes with its own set of problems.
You’ll Get a Better Buying Price if You Don’t Use a Real Estate Agent
If a property 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.
Selling Without an Agent Will Save Money
Selling your own home requires the skills to get it listed online, market to prospective buyers, negotiate the contract, and deal with any inspection or loan application phases. Buyers expect a substantial discount when you’re selling on your home, furthermore, so what you save on real estate commission may result in a lower price.
The Real Estate Market Only Rises
Many homebuyers think that the market only goes up, and fail to consider when a correction will come. Home prices have fallen a number of times over the years, including in the early ‘90s, early ‘80s, and mid-’70s- not to mention the recent recession.
Renovate Your Kitchen and Bathroom Before Selling
If your kitchen and baths already work, a major remodel could backfire. Prospective buyers may not share your taste, but they don’t want to redo something that’s just been renovated. You’re better off adjusting your price accordingly.
Source: U.S. News