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5 Real Estate Myths Debunked
We can define a myth, in a non-traditional sense, as any made-up story or an idea. A myth could also be anything that is told and retold among colleagues, neighbors, and friends without concrete supporting evidence. Not everything that you read or hear is necessarily true. When it comes to real estate, you may wonder what myths could there possibly be, but as in any other field, there are many beliefs that simply aren't true. Therefore, always take everything you hear with a pinch of salt and do your own research. What follows are the five most common real estate myths - debunked.
1. Real estate agents are all the same
Nothing could be further from the truth. First of all, there are different types of agents - seller's and buyer's agents. Obviously, buyers' agents will have the buyers' best interest in mind, whereas sellers' agents will focus on sellers' interest. Moreover, different agents have different skills and traits. Some agents are pleasant to work with, some are more responsive, and they all have different approaches. Also, agents vary in their ability to negotiate, which is an exceptionally significant aspect of the job. Finally, agents differ in their level of experience. Indeed, there is a vast difference between a realtor with 20 years of experience in selling prime real estate and the one with two-year experience. So, this myth is definitely debunked.
Real estate agents differ in many ways, so be careful when choosing yours.
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2. Agents will do and say anything to close a deal
There is a strict code of ethics, many rules, and regulations that all realtors must abide by. So, a decent agent would not risk their job and license by breaking the law. Additionally, real estate agents rely heavily on referrals, word of mouth, and repeat business. A dishonest agent would quickly gain a bad reputation, which makes this real estate myth mostly not true.
3. You should wait to get a mortgage approval after you have found the right property
This is a big no-no for several reasons. Firstly, you should be pre-approved for a mortgage before setting off on a house hunt because you should know your budget. This will eliminate disappointment; you do not want to find your dream home only to realize that you cannot afford it. Secondly, in the case of multiple offers, pre-approved clients have a significant advantage in the bidding war. Lastly, if the bank has not pre-approved your loan, it can easily happen that you find the perfect place, make an offer, but your approval gets declined. And we have debunked another real estate myth.
There are many benefits to being pre-approved for a mortgage.
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4. It is not necessary to prepare your home for sale
This is a widespread myth that needs exposing. Go back a little and remember the time when you were house hunting. Which properties did you take into consideration? When you are moving into a new home, you want there to be minimal additional work. The sole process of moving is stressful enough. Buyers are most commonly looking for homes in a move-in condition. You do not want your house to sit on the market for too long, creating a negative stigma around it. If you have decided to sell your property, it is probably due to the fact that you are moving to a new place. Therefore, it is crucial to do things in a timely manner before the relocation and fix everything required. For instance, you should definitely do minor repairs and put a fresh coat of paint on the walls. General cleaning is a must, and it is helpful if you stage the house properly.
Everybody wants to move into a house with a completely renovated kitchen and bathroom. Mind you; these are the most expensive places in a home to update. You may decide not to do any work on them, and given that everyone's taste is different, you might be right. But in that case, you should adjust the price. Every irregularity, every flaw, gives the buyer room for negotiation. Remember, the first three to four weeks are essential for the sale, and within that time, adequately priced, properly prepared, and well-marketed homes usually get a contract.
5. Real estate agents price homes higher to allow room for negotiating
We live in the world of the Internet, and everybody can get a lot of information much more quickly than in the past. Tricking buyers is not that easy, as they will see right through it. Also, real estate agents will show their clients several properties similar to what they are looking for, and within the determined price range, so they will quickly get the idea of how much money such homes sell for. Consequently, an overpriced home will end up staying on the market forever, and, eventually, you will have to reconsider the price.
It is a real estate myth that houses are priced higher to make space for negotiation.
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It is understandable why you may think these real estate myths are true, but they certainly are not. There are many misconceptions about real estate agents, agencies, commissions, how they work, and who they work for. It all boils down to the fact that you should do your homework. To choose a reputable real estate agency:
- Consult your friends and family who have recently moved, and see if they can give you any recommendations.
- Have a meeting with a few agents to decide who would be suitable for you.
- Think about who you would have a pleasant time working with
The bottom line is, for successful cooperation and for closing the deal to the benefit of all parties involved, it is of the utmost importance to establish mutual trust between yourself and your agent. The process of selling or buying real estate is complicated enough; there is no need for real estate myths and erroneous preconceptions to make it even harder.
By: Sophia Perry