Everybody likes to talk like an expert when it comes to making an investment decision. Try to discuss things related to the real estate market in your friend circle and the chances are high that you will be cut short by people who think they are the ‘experts’ in this field. Some will even try to make you buy the theory that it is a good idea to make an investment in real estate without getting an authorized real estate agent involved in the process. The idea may sound tempting given the fact that finalizing a property deal without a real estate agent means saving a few bucks but the consequence of that decision can be disastrous.
The thing is, buying or selling a house is not something that we do on everyday basis. But most of us have a fair degree of knowledge of how the real estate industry works thanks to our friends and family members who have probably an untold number of stories of how they have successfully sealed a tough real estate deal.
The problem is most of these stories don’t give us an accurate picture of how the real estate industry actually works. Which is why there is so much conflicting information out there and can be very confusing to understood? Moreover, there are hundreds of such myths going around and it is making it all the more difficult for people who want to invest in the real estate industry. In this article, we are going to bust some myths to help you make a better decision:
Don’t Use A Real Estate Agent – This is a common myth and everybody around seems to be perfectly happy to accept this on face value. If you’re a buyer, you need to make sure that there is a qualified real estate agency involved in the buying process because you have nothing to gain otherwise. What usually happens when the buyer does not involve an agent is that the seller will receive the amount that the agent was supposed to receive in the process. So, you are not going to get any benefit once the process is complete. Also, chances are quite high that the seller will inflate the property price. The seller is for the benefit of the selling party, not in the best interest of the buyer.
Renovation Will Help You Increase the Property Value–This is another common misconception. Spending large amount of money on unrealistic additions is certainly not going to help you increase the value of the property. Buyers simply can’t afford to increase their budget just because you have bought some expensive curtain. The sooner you realize this, the better. Some real estate agents believe that renovating the front of a home can help to impress the potential buyers. So, changing the door or cleaning the facade might help you increase the price of the property. Always speak with your agent prior to any upgrades.
Open House is the Best Option to Sell Your Property – This is another popular myth probably perpetuated by some unscrupulous real estate agents. It has been observed time and again that open houses rarely help in the buying or selling of a property. It may be helpful for the real estate agents to get to know people who might be looking to buy or sell property but people rarely decide to buy a property after attending an open house.
My Agent Takes Special Care of My Property – No, he is not supposed to do that. A real estate agent should act professionally but that does not mean that he can’t give you some personal advices. Not at all. But you should not have undue expectations from him.
Listing Your Home at a Higher Price Is A Good Idea – People are not so gullible and therefore, there is no way you will be able to get extra money by listing your property at higher prices than the area permits. At best what will happen is that the prospective buyers and real estate agents will ignore your proposal and eventually you will have to make compromise on the price. Do an evaluation of your property before getting your property listed.
The Market Will Go Up and Therefore, I Should Hold This Property for Awhile – This is another popular myth. Real Estate market is not like the share market where volatility rules. Here changes happen rather slowly and that means, if you are looking for dramatic correction in price, you will be disappointed.
These are some of the real estate myths that we all need to remain aware of.