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There is a lot of information available online when it comes to buying and selling homes. As a real estate consumer, it’s easy to pick up some less than helpful information that could be disastrous if applied to your buying or selling transactions. As real estate professionals, we hear many industry myths from our clients that came from information they learned online. To help put these common misconceptions to rest, we have compiled some of the most common fallacies that you should stop using today:
I will net more profits if don’t use an agent to sell my home.
You will not have to pay the additional 3% commission to an agent to represent you in the sale of your home but you will also likely not get as much for the home sale if you represent yourself. You will also have to pay for all the marketing costs out of your pocket when ordinarily, that is covered by your listing agent. These costs like MLS fees, photography, staging, signage, print advertising, and online ad campaigns are going to come out of your net profits and will be more than the 3% you initially thought you were going to save.
I should renovate before I sell my home.
Renovations are costly and very subjective to personal taste. It is better to ensure that everything in your home is in working order and neutral rather than spending money on picking out expensive upgrades that a new buyer may decide to rip out anyway. Most renovations will not give you a dollar for dollar return so keep you repairs limited to getting your home in move in condition.
The school district my home is in doesn’t matter if I don’t have kids.
Homes in more desirable school districts sell for more. That means if you are looking to buy, you will pay a premium for a district in high demand and when it comes time to sell, you can ask for a premium as well, regardless if you have children or not. Your home’s proximity to parks and recreation centers will also impact your sale price.
The best time to buy a house is in the spring.
There are off-season deals to be had when shopping for homes and typically the off-season falls when the temperature does. While the spring usually boasts the largest number of homes to choose from, the winter usually means the fewest number of buyers. This can mean sellers are willing to be more flexible when considering offers during the colder months than they would be in the spring or summer.
Buying a new home is a better investment because it’s move in ready.
New home developments are designed for quick build times at a low cost in order to maximize the developer’s profits. This often means poor attention to detail, builder-quality materials, and rushed craftsmanship. Not all new construction is built equally so make sure to do your homework before buying a new home. They can be just as full of necessary repairs as a 30-year-old property and just as costly to maintain.
I should never offer full asking price.
This is a quick way to miss out on your dream home. There is room for negotiation when the home is overpriced, needs repairs, or when it comes to closing costs. However, when a home is priced fairly and the market is competitive, holding back on anything less than a full priced offer in order to save a couple of thousand dollars will be a decision you regret.
The highest offer is always the best offer.
The best offer is the one with the best probability of closing on time. Take a look at the contingencies from your buyer – Are they pre-approved? Are they selling their own home before they buy yours? How long do they need to close? How long is the due diligence? Are they asking for additional monies towards closing? How much earnest money are they putting down? These are all considerations that you need to take into account as well as the offer price.
The internet is a fantastic source for information when it comes to buying and selling a home, but it’s important to ensure you are getting your information from a reputable source. Be sure to check out some more Real Estate Myths from Metro Brokers.