Debunking Some of the Most Common Real Estate Myths
For most, the home buying and selling experience can feel exciting, confusing, and stressful all wrapped into one. Because of this, many will turn to the internet, social media, or even family and friends where information is readily available to answer their questions. However, it's important to remember that not everything you read and hear is accurate or reliable and could even be a myth that will lead you astray. In this week's blog, we’ll be clearing the air by debunking some of the most common real estate myths to help ease your mind during the real estate process.
Myth #1: When selling a home, price it to leave room for negotiations.
Correctly pricing your home is a vital decision that could either help or hurt your standing in the real estate market. Since this is such a crucial decision, there can be many myths created as a result. One of the most common pricing myths is that pricing your home much higher than market value is the best route to go to create more wiggle room for the negotiation process. The reality is, this could result in buyers becoming discouraged as they realize your home is overpriced and will move on without wasting their time. While we understand that you want to get the best price for your home, inflating that number can do more harm than good in the long run.
Myth #2: First-Time buyers need 20% for a deposit.
Most first-time homebuyers have heard over and over again that they need a 20% deposit to purchase their first home. This is not true. Many first-time buyer programs only require about a 5% deposit, which is significantly lower than the 20% that's commonly thought to be required. Additionally, many housing programs offer first-time buyers the opportunity to save up to $5,000 and will then match one to two times the deposit.
Myth #3: A home doesn't need to be prepared for a sale.
Preparing your home for a sale is an important step to take to help it to sell quicker. The myth that your home doesn't need to be prepared for a sale could cost you thousands of dollars and cause your listing to become stagnant right out of the gate. Starting the prep process to put your home on the market can include simple steps such as cleaning up clutter, quick touch-ups, and staging. Buyers today are more drawn to move-in ready houses, so prepping your home to reflect that same feeling could lead to a quicker sale.
Myth #4: When making an offer on a home, you need to start very low.
Coming in with an extremely low offer on a house can alienate or offend the seller and could even cause them to end negotiations on the spot. Just like how many sellers make the mistake of overpricing their home, many buyers make a similar mistake by starting with an offer that's way too low. Now, this doesn't mean you can't put in an offer that's lower than the listing price. Just remember, coming in with a reasonable price to show that you're eager to start negotiations will show the seller that you're ready to make a great deal.
Myth #5: All I need is the down payment to buy a house.
One notably common myth for buyers is that all they need upfront is a down payment to buy their next home. This can get buyers in trouble because they fail to realize the other costs that come with buying a home. The list could go on forever, but these are just a few: closing costs, attorney fees, title fees, income tax fees, etc. When considering the purchase of your next home, it's crucial to factor in all of these costs associated with the purchase instead of focusing solely on saving for the down payment. Doing so could save you from a massive financial headache down the road.
Myth #6: With all the information out there, I don’t need a real estate agent.
Almost anything you need or want to know can indeed be found on the internet. Due to this, many home sellers and buyers believe they have the knowledge and resources to go through the real estate process on their own. However, many may not realize that real estate agents have the tools and expertise to ensure the entire real estate process goes smoothly from beginning to end. Partnering with a real estate agent gives you access to their seasoned expertise, negotiation skills, and connections in the real estate market. Granted, it's not impossible to sell or buy a house on your own but certainly isn't an easy process. To save yourself from making mistakes or getting too stressed out, partner with a great real estate agent who knows exactly what they're doing.
While the list of real estate myths seems to go on forever, our agents are here to help you see the light at the end of the misinformation tunnel. If you're looking to sell your home or find the home of your dreams, visit our Contact page or give us a call at (817) 717-6036 to get the process started today.