If you’ve ever bought or sold a home and turned to the Internet for guidance, you know there is a ton of information swirling around out there. But how much of it is good advice, and how much of it is misconception? While it may not sound like a big deal to have the wrong idea about real estate investments or the housing market, some of these ideas actually hold back a lot of people from walking a great path to financial independence. Or worse, they cause many beginners to make mistakes along the way. Selling real estate or buying real estate is a big deal and it will likely be the largest financial transaction of your life. You will need to look at facts before you start believing everything you hear. Here are the most common real estate myths we here on the job and it is our pleasure to debunk them
The main reason sellers believe that selling their home is a good idea is because it will save them lots of money. This is a common real estate myth which is completely false and contrary to popular belief. A real estate agent knows the market, they know how to sell and how to close, they know well how to avoid common mistakes that you are likely completely unaware of. Many sellers who attempt to sell their home believe that selling homes is easy. It would be great if selling homes was as simple as putting a for-sale sign in front of the home, but it is not. Sellers often will end up losing money by not hiring a professional real estate agent. This could be due to several different reasons e.g. overpricing which leads to their home not selling for 6 months, transaction mishandling ending up with the buyer pulling out of the contract after 3 months, Or not knowing how to negotiate the best price and terms for their home?
When it comes to trying to figure out the best time to invest in real estate, there is only one way to time it: when you find your perfect house and you can afford it. BUT let us clarify what is meant by this real estate myth; On a personal level, Yes there could be a wrong time and a right time. Let's say you lose your job and you have little savings - this is a bad time to invest. On the other hand if you have job security and can also get a mortgage easily - this is a right time for you to invest.
A good deal does not mean a low price. When real estate agents use the phrase - “this is a good deal” - they are not referring to how cheap the property is, but they are basically telling you that - The price is below market value, the property can give you consistent cash flow and a good ROI after a few years or You can afford it. To all first time investors keep in mind that being cheap can be part of the deal but it should not be the only reason to sign that agreement.
This is not true at all! Pricing your home too high will drive away potential buyers. Why? Because most shoppers don’t even look at homes that are priced above their average market value. And yes, you can always lower the price if you do not get any leads but if the home has already been on the market for months to a buyer things might start to look fishy. It is always better to set a reasonable price that will attract the right kind of buyers and offers. A real estate agent can recommend a market range price and help you sell the home.
This is a myth! First let me clarify something - Experience in real estate investing can lead to a kind of “gut feeling” and this experience has been backed up with thorough research and analysis. Successful investors have made it by; accumulating knowledge, having an understanding of the risks and how to handle them, properly evaluating the market, learning how to determine return potentials on properties and working with expertises who understand real estate markets. So you too can succeed in real estate investing.
A myth! Each real estate agent comes with their own unique set of skills, specialties and experience levels. Whether you want to sell or you are looking into buying it is essential you pick a real estate agent that is right for you, a good fit, someone that you like, trust and that you believe will have your best interests in mind.
