Most consumers don’t buy and sell homes on an ongoing basis. You may put your home on the market every five or 10 years, if that.
Even though most Americans enter the real estate market only now and then, we may assume it’s easy to know the ins and outs of the profession by reading online. But there are plenty of myths about the real estate industry that we’d be wise to know about before we buy or sell our next home.
If you can keep the following real estate myths in mind, you’ll be better prepared the next time you’re in the real estate market.
You Should Set the Sales Price Above Market
This sounds eminently sensible: Price your home above the market value, and you’ll get more money out of it. If it were that easy, though, everyone would do it!
In reality, setting the price too high means most shoppers for real estate won’t even look at the home. Buyers are wary of homes that seem to be priced high.
Even in hot markets such as San Francisco, savvy sellers have been known to set the price below market so they can launch a bidding war. If that happens, you can end up getting tens of thousands more than market price when you sell.
Sell Your Home Yourself to Save the 6% Commission
When you sell your home with a real estate agent, you typically pay a 6% commission. For a house priced at $200,000, that’s $12,000 off the top.
This is the reason many home sellers try to sell their house without using an agent. But skilled real estate agents have excellent negotiating skills and pay for extensive marketing of their listings, including “for sale” and “just sold” postcards that will attract plenty of views for your home.
Some home sellers can successfully sell their property on their own, but it takes plenty of work and skill … and not a little luck.
You Can Use any Real Estate Agent
Every real estate agent is different, and has different skills and personalities from the rest. They also have a variety of specialties; for instance, one agent may know your neighborhood much better than another.
This matters because when you select your agent, it’s crucial to select the best one for your situation and personality. In the long run, it pays to choose the best agent for your home sale because the one that fits your needs and tastes will usually get you better results than just any agent.
Shop For a Home First
Unless you are buying a home with cash, the financing aspect of the transaction should be the first thing you consider. When you start to think about buying a home, the first thing you should do is talk to a mortgage company about getting a pre-approval.
When you are pre-approved, the mortgage provider will check your credit and verify your income to calculate how much home you may be able to afford. Knowing your price range ahead of time will ensure you don’t waste time looking at homes you cannot purchase.
You Don’t Need a Buyer’s Agent
When there’s so much information online, you might presume you don’t need real estate agent representation in order to buy a home. But you should always have a skilled agent working with you.
Many people forget that the home seller usually pays the commission, so there’s little to gain from not retaining a real estate agent as a buyer. You’re more likely to overpay when you try to negotiate a deal on your own.
When you get into the real estate market to buy or sell a house, keeping the above information in mind should ensure you have the best possible outcome.