The Biggest Myths of Real Estate, Debunked
If you’ve ever turned to Google to answer one of your questions about real estate, you’ve probably come across many differing opinions and tidbits of advice. With all the information swirling around, sometimes it’s hard to differentiate between fact and myth. Let’s dive into 7 of the most common real estate myths and debunk them!
1. Selling your home yourself will save you money
This is one of the biggest misconceptions in the real estate industry. Many sellers snap some photos, upload them to an online listing and think, “how hard can it be?”. But the answer is: pretty hard if you don’t have the proper guidance or experience that a professional real estate agent brings to the table. On average in 2020, FSBO (for sale by owner) homes were sold for $217,900, whereas homes sold with the help of an agent averaged $295,000. When you sell with an agent you not only have the opportunity to make more money, you’ll have help with negotiating, connections to other industry professionals, and expertise at every step of the process.
2. Agents are interchangeable
No two realtors are alike. All realtors come with their own unique skill sets, experiences, and specialties. Some real estate agents may be experts in out-of-state transactions, which would be an ideal fit for a client moving to a different region. Others may have certain backgrounds that help them excel in a certain step of the process. For example, an agent with a background in law will be extra knowledgeable on the legalities of buying and selling, which would be a perfect fit for someone who may be clueless about that step. Finding an agent is like buying a home, you have to know what qualities you want in order to find the perfect fit!
3. If you see a home listed online, that means it’s available
As we mentioned in the beginning, not everything you see online is necessarily true. That can be especially true when it comes to house listings. The main goal of the most commonly looked at listings sites is to list as many properties as possible, which means that giving the most accurate and up-to-date information is sometimes put on the back burner. They also commonly leave sold listings on the site, and just change their status. It is possible to gather some information on homes from these sites, but it’s best to pass along information to your agent so they can double-check it for you. Your agent will always have the most up-to-date info on a property.
4. If you’ve bought or sold in the past, you’ll be a pro the next time
Buying or selling a home is always a unique experience, no matter how many times you do it. The real estate market is never consistent, and there are always different factors into play each time you may be buying or selling. That’s why having a trusted real estate professional is so important. Agents are constantly buying or selling in all market conditions, therefore they have the expertise to help you navigate through the process in every situation.
5. Renovating your home before you sell will always increase your home’s value
Not all home renovations are created equal. Sometimes installing the latest appliances or completely renovating the bathroom doesn’t give the best ROI. Though you may put in more money than you get in return, these upgrades can make your home more appealing to buyers which can get it off the market quicker. But a quicker sale doesn’t mean a higher sales price. Before doing any major renovations or making big purchases, it’s best to discuss with your agent if they think these investments are worth your time and will get you the return you’d like from them.
6. Price your home higher initially so you have room to negotiate
Pricing your house too high will result in a loss of both time and money. The real estate market is all about realistic prices. A high listing price will cause your property to be overlooked, especially when it’s a buyer’s market. If you price your home too high so you have room to negotiate, you may not attract any buyers to negotiate with!
7. Agents just want to make a sale
Of course, a real estate agent’s end goal is to make a sale, but their focus is the process to reach that goal and help their clients along the way. Real estate isn’t a home business, it’s a people business. Agents are in it for the long haul from the moment that they first speak to a client, and are happy to be able to help them make a well-informed, life-changing decision.