It seems that, as the time goes by, people grow more and more suspicious of the real estate market, and it is not hard to see why. The entire niche is plagued with some very suspicious half-truths, and a huge number of plain lies, and instead of making this situation much clearer, the Internet has only made it worse by helping disinformation to take root and spread even further. Let us see then what some of the most common myths about real estate are, are they true, and if not why is that so.
“Lower Agent Commissions Means More Profit”
This myth is the prime example of someone deceiving you to gain an advantage, and it is usually spread by a few bargain-basement agents. The truth is that making profit has really nothing to do with the agent commissions and true professionals will not offer you a discount simply because they do not need to. Instead, they will be able to negotiate the price that will be satisfying both to them and you. If you notice that someone is willing to give up a part of their share because he or she is not able to lure good offers from high-paying customers, avoid that agent like the plague.
“Pricing a House Higher Will Leave More Room for Negotiation”
On paper, pricing a house higher so you can bargain later does seem like a very sound strategy. In reality, this is probably one of the worst things you can do while selling real estate. Namely, if you initially price the house you are selling too high, buyers will, naturally, gravitate towards more affordable alternatives, and you are running the risk of letting your real estate sit on the market for quite some time. And longer the real estate is on the market without a buyer, the more it loses its appeal.
“An Open House Will Sell the House”
Leaving your house opened every Sunday will give you a lot to clean up after the visitors leave, and expose the place you are living in with your family to any stranger willing to come by, but will it sell the house? Hardly. As a matter of fact, the number of houses which are sold as a direct result of an “Open House” is negligible. One of the main reasons agents are trying so hard to push this idea is the opportunity to meet a lot of new clients. So, while it is not too harmful, “Open House” is certainly not worth the trouble.
“Leaving Everything to the Agent Will Spare You a Lot of Trouble”
In Australia, there is a process called conveyancing, which covers all the major actions during the three main stages of property transaction – before contract, before completion, and after completion. A conveyancer is a licensed professional who leads you through all of these important stages. Unfortunately, stateside things are not as simple and you will have to do a very thorough research of local regulations, and look for help from a lawyer. Counting on your agent to do that on your behalf will lead you nowhere.
“Buyers Will Not Enter the Real Estate if They Do Not Like it From Outside”
Surprisingly, and indeed unfortunately, this myth is pretty much the truth. So, if you are buying, make sure not to judge a book by its cover, and check every house from the inside. You may be pleasantly surprised. If you are, on the other side, selling a house, do not allow it to go unnoticed just because you have not taken some time to give it a much needed polish.
These were some of the well-established myths considering the real estate market. They are, unfortunately, hardly the only ones. The only way to find an exit from this complicated maze is to be very careful, and double-check every rumor you hear.