Many of us don’t invest in real estate often. It’s only once in a lifetime that we buy a home or some real estate property. When we venture out to buy a home, we read up many things on the internet and converse with like-minded people. But, we cannot entirely believe the information gathered from these sources. There are some real estate misconceptions that may sway you towards loss. We will discuss what they are. All the myths discussed in this article are as analyzed by Zack Childress, a real estate guru, investor and expert.
Pricing our homes higher or lower than the market price
Many real estate agents and buyers do not care to look at homes priced higher than the market. So, it is likely that such residential properties will not attract buyers. Of course, we can always lower the prices if they don’t draw the buyer persona. But, this will not put us in a good light, as buyer customers are often suspicious of such price reduction trends. According to the chief economist of a residential real estate company, sellers in San Francisco price their homes lower than what they expect to get, for earning multiple offers. But, this too is bad in a deteriorating market, as we will get offers which ask for lower prices only.
All real estate agents are equal
If we think that all real estate agents are the same, then we are living with the greatest misbelief. Different real estate agents have different traits. They have different levels of experience. For example: A real estate agent who has been working with buyers for purchasing of property for 2 years is not the same as one who has been in the real estate selling domain for the past 20 years.
Selling homes on our own is easy
Selling our homes on our own is not easy. When we undertake this selling, we may experience difficulties in negotiating prices, applying for loans, marketing our homes and putting our homes in listings – online as well as others. When we sell on our own, we think that we are saving on commission but we end up procuring a much lower price for our homes than when we sell through brokers, since buyers expect a discount on such dealings. So to be on the safer side, we should hire a real estate agent who will make the whole process much simpler.
It’s not essential to prepare our homes before marketing
This is a very common myth. So why should we prepare our homes before selling in the market? This is because nowadays, buyers are looking for move-in ready homes. Well prepared homes get takers as early as 3-4 weeks in the market, which is the most critical period. Pre marketing preparations include some repair work, cleaning and simple staging. Careless pre sale preparations can lead to homes slipping out of higher bids.
These are some of the common real estate myths. They are not true and can cost a lot to us in terms of efforts and money. So we should break these myths and follow the analysis of Zack Childress.