The real estate market has had some hard times over the past few years.
And while the market finds its footing again, some buyers and sellers are dipping their toes in the water for the very first time.
Buying or selling a home is a big step for any individual and doesn’t happen every day. It might only happen every 10 years, or maybe even once in a lifetime.
Despite the fact that most folks enter the world of real estate each year, rarely do many of them have personal opinions and biases on how it works based on the news, house hunting TV shows, or experiences through friends and family.
But for everything we believe to be true about the industry, there are numerous myths about how realtors treat their clients and how the process of purchasing or selling a house really works.
Buying into these stories can hinder a buyer’s ability to get the right price for a property or put it up for sale at the right time.
There’s no doubt that the internet and technology have made the entire home buying experience easier than ever.
Buyers can use tools like RESAAS Marketplace partner, Dotloop to stay in the loop of each step of the home buying process.
It’s critical that realtors be prepared to debunk a buyer’s myths.
If not, both the realtor and client can suffer. A good agent is informed and will educate customers while debunking the myths at the same time.
Here are 5 real estate old wives’ tales that might trip up a real estate transaction:
Spring is the best time to buy or sell
Since the dawn of time, or at least it seems, homebuyers and sellers alike would push to complete transactions before the summer or by the end of the school year.
Families wanted their kids to start fresh in a school and a new neighbourhood come September.
More than half of home buyers are millennials without kids
Millennials who don’t have kids so the need to purchase their home before the new school year isn’t as relevant.
While it’s assumed that winter is the worst time to sell, it’s actually quite the opposite.
Buyers are ready to gobble up great deals year round, especially during the holiday season.
Cutting out the middleman will get buyers a better deal
I’m sure by now you’ve heard of alternative options to having to go through a realtor to buy or sell a home.
A lot of people assume that agents are now irrelevant because they can post real estate listings online themselves.
By doing independent research, buyers think that they can save money by cutting out the middlemen – their realtors.
A realtor’s job was never limited to accessing listings. A good agent has his feet on the street and thumb on the market’s pulse.
Real estate agents have the knowledge and experience to get you the best deal
Buyers left to their own devices can hit many roadblocks.
With agents in their corners, buyers can be made aware of some of the particular unknowns about a house or market.
By working with realtors, buyers get great advocates who have their best interest at heart.
Today, there are even real estate auction marketplaces that assist agents and act as virtual agents.
The point here is don’t do it alone. Get an expert—whether it’s a live agent or digital agent—to assist in the buying or selling of your home.
Sellers will earn back what they spent on home renovations
Perhaps it is the influx of home renovation reality TV shows that are driving more people to renovate their homes in hopes to have that monetary investment back to them ten-fold.
And while homeowners can definitely see a return on their investment, they may not see just as much money back as they think.
Sellers may only get back a fragment of the money they put into their renos
The annual “Cost vs. Value” survey shows that it is almost impossible for sellers to get back 100 percent of the money they put into their old homes, and the only revamp that is expected to net you as much as you paid is a new front door.
Renovations might make houses more attractive to potential buyers and increase sales times, but sellers are still only likely to recoup 67.8 percent of what they spent.
Pre-approval is finished when buyers finds their dream home
One of the toughest myths to debunk relates to financing.
Many buyers think that they don’t need to get pre-approved until they find their perfect homes.
Before falling in love with a new potential home, eliminate any chance of upset by getting pre-approved by a mortgage lender
Home buyers should get pre-approved for a mortgage before they even begin house hunting.
The reality of a home receiving many offers from several different buyers is very real. While this scenario is a dream for the seller but a buyer’s worst nightmare. A buyer that is already pre-approved has an advantage over the competition.
Hosting an open house will sell a house
A lot of sellers are under the impression that having an open house will entice sales.
According to the National Association of Realtors, open houses lead to only 2 percent of homes being sold.
One of the best ways to sell a house in by creating an “open house” online. You can do this through virtual home auction sites, for instance, that let buyers bid on your house in real time.
Got a myth to debunk?
I’m curious to know if you have any real estate myths to debunk.
If you do, submit them by commenting below!
Wade Micoley is an innovative Broker & Owner based out of Green Bay, Wisconsin. He is a 30+ year veteran who has assisted hundreds of Real Estate Agents across the U.S. and Caribbean expand their businesses and become local market leaders through his revolutionary, hybrid marketing system.