There is a lot of mystery revolving around the real estate market, and a lot of real estate myths people assume to be true. The reality, however, is far from that. Just like with any other field, rumors surface and no one bothers to double check. Moreover, the internet is the perfect birthing ground for false information. So next time you hear something about real estate, make sure you double-check the information. Here are the top 7 real estate myths debunked.
1. Real Estate Agents Make a lot of Money
While a successful agent may make a good income, we cannot ignore the significant amount of time, effort, and money that is invested beforehand. Many real estate agents work on a negotiable commission, meaning they do not make a fixed amount of money out of every sale. Furthermore, agents get a cut of that commission that is then divided amongst other agents involved in the sales transaction. Although you may feel like agents overcharge for their job, you should not ignore the expenses they are responsible for.
2. When Pricing Your Home, Always Leave Room for Negotiations
While this may be somewhat true, it can easily be misinterpreted. Of course, any buyer will negotiate the price you have chosen, but negotiations have a limit. For instance, if you have overpriced your home by 20,000, most buyers will probably ignore even considering it. Do not forget that modern buyers are well educated about the market. They will often research the market and have an idea about property prices. So before you overprice your property, make sure you do not exceed limits.
3. You Need a Real Estate Agent to Sell or Buy Property
Out of all the real estate myths out there, you may have heard this one a lot. Many people will advise you to hire an agent to do the job. Although agents are able to take a lot of pressure off your shoulders, you don’t need one. There are many tools out there to help you sell or buy property without the help of an agent. It all depends on your preference. Modern technology now allows us to list homes for sale on many platforms without the help of an agent or company.
4. All Real Estate Agents Are the Same
When you find yourself looking to sell or buy a house, many people will advise you with choosing any agent. Afterall, it’s a simple job and almost anyone can do it. However, that is not the case. Every agent has a different set of skills and a varying degree of experience in the field. Moreover, there is a difference between an agent who works with sellers and one who works with buyers. Therefore, it is important to interview as many agents as you can. Consider experience, characteristics, as well as reputation in the market.
5. Only a Home in a Prime Location Sells
Another one of the most common real estate myths is the importance of location. For years, people in the field insisted that location is the most important factor when it comes to a property’s price and desirability. However, that myth has long been debunked. Modern buyers are looking for more than a prime location. Price, the property’s condition, and amenities within the home also make a difference. So if you are trying to sell your home and it is not in what is considered a prime location, don’t fret.
6. Any Home Improvement Project Adds Value to My Home
While some additions may add value to resale, that cannot be said about every change you make. Painting a mural on your living room walls won’t necessarily make a difference. However, there are some improvements that may add value to your home. These include kitchen and bathroom remodeling, replacing flooring, or even adding a deck to your home’s exterior. Landscaping can also pay off when selling your home. Before making any improvements, talk to an agent about it and understand the effect it will have on your selling price.
7. Neighbors Will Tell You How Much They Sold Their Home for
When pricing your home for selling, you will probably ask your neighbors how much they sold or bought their home for, While this may seem like a good idea, it will not always be useful. Most likely, neighbors will not share an exact number with you. They may give you a vague response or say they got what they asked for. This is not clear and concise information. Do not base your listing price on information from your neighbor. Remember that this is not reliable comparative data.