Most people aren’t experts in the real estate industry. You don’t buy and sell homes very often—maybe once in a decade or once in a lifetime. So, there are probably a lot of things that are unfamiliar to you. That’s why you always want to hire an excellent real estate group in your area. They’ll take care of the difficult parts so that you can enjoy the best parts of the buying and selling process, like collecting the profits from your home sale or getting to call a beautiful property your own.
There are probably a few things you think you know about the real estate industry based on hearsay or the experiences of others. The media makes it easy to read a lot of opinions about how the market is faring and the best things you should do to buy or sell a home. Some things might be true, but a lot of what you’ve heard is probably a myth.
Misconceptions in real estate can get in the way of a good sale. It’s important for you to recognize that rumors are spread in the real estate industry. Take everything you read on the internet with a grain of salt, and confirm its truth with a real estate agent.
Here are some examples of myths you’ve probably heard in the industry along with their realities.
Myth 1: The market will always go up again.
Reality: Sometimes the market stays down for a really long time.
It’s true that home prices have been rising fairly steadily over the last few years, but they could decline at any moment if the economy goes bad. It could take decades for a home to get back to its original purchase price. It’s not always possible to sell your home for the same price or more than you bought it for.
Myth 2: All real estate agents are trying to pull one over on you.
Reality: Some might, but most have your best interests in mind.
A good real estate agent knows that if you find a home at the right price, they’ll make a profit too. They don’t want to risk losing out on the sale by lying or pushing you too far in one direction.
That being said, every real estate agent is different. Some might try to use underhanded methods to get a higher sale price. It’s important that you feel comfortable with your agent and that they treat you with respect as you set your terms and limits.
Myth 3: You need the latest and greatest updates to sell your home quickly.
Reality: It can help, but it’s not the most important thing.
Sure, people like to see a master bedroom with a walk-in closet, a kitchen with granite countertops and top-of-the-line appliances, and a bathroom as big as Texas. However, these things aren’t always the deciding factors for homebuyers.
Oftentimes, a buyer simply wants the right location with the right number of bedrooms. The extras are nice, but not necessary. Additionally, these extras can drive up the price, which alienates some buyers.
Myth 4: You’ll earn back everything you spent on renovations during the sale of your home.
Reality: Most renovations only get you a partial return on investment.
Very few things will bring you returns of 100 percent or more. Things like a bathroom or kitchen remodel will bring you an 80 percent return, if you’re lucky. So, renovations are great if you’re going to keep the house for awhile and enjoy it, but it probably won’t get you a high enough asking price to completely cover the cost of the renovation.
Myth 5: You can save money by selling your home without a real estate agent.
Reality: Most real estate agents will actually save you money.
The logic behind this makes sense on the surface—after all, you won’t owe the real estate agents a six percent fee. However, most people need a real estate agent to help them negotiate, price their homes right, market it, write the closing contract, and get a quick home sale.
It’s hard to sell a home without the connections a real estate agent provides, and you might not be able to sell your home otherwise. You might also have to lower the asking price or cover extra fees because you made a legal mistake. In a perfect world where nothing could go wrong, you could sell your home without an agent, but in this market, you need one on your side.
Myth 6: Price your home high to leave room for negotiation.
Reality: Homes priced too high scare off buyers.
Buyers won’t look at homes that are overpriced. Every market has a range of prices that are acceptable for a certain type of home and neighborhood. You should always list your home somewhere in between, and use that range to define a negotiating landscape.
Myth 7: Paint your home a neutral color to avoid scaring away buyers.
Realty: Buyers don’t usually care about the color of the interior.
Most people can see past the colors on the walls and see the potential. Additionally, sometimes a colorful wall can brighten up an otherwise dark room or draw attention to a certain feature in the home. Color can have a powerful influence on buyers.
Myth 8: Open houses will sell your property for you.
Reality: Very few homes sell just because you had an open house.
In fact, less than two percent of homes are sold at an open house, according to the National Association of Realtors. Having an open house won’t do anything to hurt you, but there’s no need to have the house clean and vacated every Saturday afternoon so that it’s available for buyers to walk through.
Myth 9: Getting approved for your mortgage is the last step in buying your dream home.
Reality: You should get a pre-approval first to narrow your home search.
There’s nothing worse than finding your dream home, only to realize that it’s priced $100,000 more than you’re approved for. Additionally, the loan process can take several weeks to complete, and you run the risk of the home selling out from under you while you get things straightened out. Try to have all your financial ducks in a row before browsing the housing market.
Myth 10: Updating the property with green features leads to a higher listing price.
Reality: Sometimes it doesn’t make a difference.
Buyers like to hear that your solar panels will save them on their utility costs or that you installed bamboo flooring, but that doesn’t mean they’ll purchase the house at a higher price. Green updates, like solar panels, can also be unattractive, which could lower your asking price.
It all depends on the current market and your target buyers. In some spheres, green amenities are worth the extra cost, but in others, they’re a non-essential.
Myth 11: The listing agent can get you a better deal on the home.
Reality: Any real estate agent can help you get the best deal on a home.
It doesn’t necessarily hurt to go through the listing agent, but if you have an agent you prefer, they can negotiate with the listing agent to get you the best price. The market and the seller dictate home prices, not the agent.
Fact: Green Residential Group Can Find You the Perfect Houston Property!
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