There are so many myths about real estate circulating, from rumors about commissions to renovations. Buying or selling a home can sometimes be a daunting and complex process, and swarms of nerve-wracking myths can easily add more stress for buyers and sellers. To alleviate some of these worries, it’s crucial to research and differentiate between what’s fact and what’s fiction! We’ve compiled a list of 11 common myths about real estate…and debunked them!
Myth #1: A Property Neither Passes Or Fails The Home Inspection
Unlike the exams we used to take in school, there is no pass or fail with home inspections. The point of an inspection is to assess the condition of the home, the good and the bad. The inspector will write up a summary after inspecting the home that reports on any issues the home has and the age of key systems, such as plumbing, electricity, the roof, etc.
Myth #2: When Selling A Home, It’s Better To Price On The Higher Side
Wrong! In fact, pricing a home too high when first putting it on the market can hurt your chances of getting more than you would like. If you work with an agent they pull comparable homes to help gauge what other homes of similar features sold for. There are so many things to consider when pricing a home, and it’s important to be familiar with all of these factors. If buyers think a property is overpriced, the house will sit on the market, and people will wonder why it has stayed on so long. This may also result in needing to make a price adjustment. All in all, it’s best to speak with a professional REALTOR® when assessing the value of your home, and al
Myth #3: All Real Estate Agents Are The Same
This could not be further from the truth! The general process of a transaction, whether it be buying or selling a home, is the same. However, an agent’s approach, ability to negotiate and be flexible, responsiveness, the resources they have, and the preferred lenders and attorneys they work with make certain agents invaluable to the home buying or selling process. When an agent is notably pleasant to work with, other agents prefer to work with them as well, giving them a better chance of getting the deal done. When considering your options for REALTORS®, follow these tips for finding a good real estate agent!
Myth #4: New Real Estate Agents Don’t Have The Know-How To Successfully Complete A Home Sale
Being new to any field and not having specific experience in real estate does not mean you don’t have the “know-how.” As in any job, it’s the skills you are able to bring to the job and the continuing training that helps an agent succeed. Even the most successful agents had to start somewhere!
Myth #5: You Get A Better Deal When Buying A Home Through The Listing Agent
Many think this is the ideal situation, but think again! While the listing agent needs to be honest and fair to both parties, at the end of the day, they will always advocate for the seller’s best interest. A listing agent will likely not negotiate the price down with the seller they’re representing just for a random buyer that they’re not representing. The fact is: buyer agents represent the buyer’s best interests.
Myth #6: Getting Pre-Approved Is Done After Finding The Perfect Home
No, no, no, no, no! One of the biggest reasons you should get pre-approved BEFORE looking at houses is to help determine your price range. You don’t want to waste your time looking at houses you can’t afford. Wouldn’t you hate to fall in love with your dream home and then find out you can’t afford it? Another reason why obtaining a pre-approval before house hunting is important when it comes to a bidding war. In a multiple-offer situation, someone who is pre-approved has a significant advantage over other offers that don’t.
Myth #7: Selling A Home “For Sale By Owner” Will Save Money
FSBOs will not save you money. There are many moving parts to selling a home, and while we would like to think it’s as easy as putting up a sign and receiving an offer, it simply doesn’t work like that. Sellers may actually lose money because they don’t have the skills, knowledge, or trusted vendors. It is the same with buyers who are considering buying an FSBO. Pricing on the home may be off-kilter with the rest of the comps in the market. There are advantages and disadvantages to going the route of buying or selling FSBO, so it’s crucial to do your homework and assess what the best choice is for your situation.
Myth #8: Before Selling A Home, It’s Best To Renovate The Kitchen Or Bathroom
If your bath and kitchen look and work just fine there is no need to remodel it. If you feel as though it may not be updated enough you should adjust the price accordingly. Remember, everyone has their own taste and likes to put their personal touches on a home. If you’re looking for more easy ways to increase the value of your home, there are plenty of things you can accomplish in a weekend!
Myth #9: The Less Commission A Seller Pays To The Real Estate Brokerage, The More Money They Will Make
This is absolutely false. It’s as simple as this: you get what you pay for. Agents who lower their commission typically aren’t equipped with as many resources to sell your home properly. If you think of it this way, a discounted commission doesn’t mean anything if your home’s price is 10% lower than it could’ve been, had you gone through a REALTOR® who has the systems and marketing necessary to sell your home for a great price.
Myth #10: Real Estate Agents Get Kickbacks From Lenders, Inspectors, Or Other Vendors
This isn’t true! In fact, this is against the RESPA: the Real Estate Settlement Procedures Act law for real estate agents to receive any kind of kickback or favors from the vendors they use.
Myth #11: Real Estate Agents Will Say Anything To Make The Sale
It’s sad to think that some agents can be deceiving, but that is the unfortunate truth. However, top-producing agents who practice real estate honestly and are passionate about their career and reputation, are some of the best professionals to work with! It is unfair to group all agents under a negative umbrella when most care so deeply about each client and finding their dream home!
Buying or selling real estate comes with a multitude of big decisions to make, and arming yourself with the knowledge you need to make the best choices is key! Me and my colleagues at Lamacchia Realty genuinely care about each client and are committed to finding not just a house, but a home where they can create lasting memories. Our dedication to personalized service ensures that every step of your real estate journey is guided by expertise and a deep understanding of your needs. If you’re ready to take the next step and buy or sell a home, contact me today!