When it comes to real estate, there’s a lot of information available—but not all of it is good! Let’s debunk some common myths and misconceptions that people have when it comes to real estate.
Myth: Pricing your house high will end up in negotiations at your ideal price; and, pricing low will result in a bidding war that will end up at a higher price.
Fact: Pricing too high or too low is typically a bad idea. When you price high, you could deter potential buyers from offering or not even be visible to buyers who are actually in your desired selling range, but aren’t looking as high as what you’re priced at.
Pricing too low can also have its problems. The idea is to end up in a multiple offer situation where each group is outbidding one another so that you end up with a higher selling price in the end. In reality, you could be faced with just one offer that’s much lower than what you want.
It’s best to price at the current market value and avoid any back-and-forth on pricing.
Myth: You can save money by selling your home on your own.
Fact: You could end up losing money by selling your home on your own, as there is a lot that goes into the selling process.
Firstly, REALTORS® have access to a large network of clients and resources. When you list your home, it goes through your local MLS® (multiple listing service) that will then be fed to popular real estate sites like realtor.ca. Agents also have access to potential clients or other agents with potential clients.
A good agent will also do their research on your home and know how to price it competitively depending on the market. When selling on your own, you could price too high and scare away potential buyers, or price too low and end up costing yourself a better selling price.
You will also have to pay for all marketing that comes with selling a home. Photography, staging, advertising—all these costs are typically covered by your agent up front.
In addition, there are important legal forms that need to be properly completed in order for the transaction to be valid. When selling on your own, you are liable for any mistakes that are made when filling out the paperwork.
All these things can add up! In the end, you could lose a lot of money selling your home on your own.
Myth: All REALTORS® are the same.
Fact: REALTORS® have varying experience and expertise, and it’s important to pick one that understands your needs. Some agents, for example, have more experience in certain locations and can price your home well in those markets. Other agents deal more in commercial real estate and rarely sell residential homes.
Be sure to research your REALTOR® and pick one that will make the buying or selling process as smooth as possible!
Myth: There’s no point in staging your home.
Fact: Not only do staged homes spend 73% less time on the market, but 83% of analyzed homes can also sell for 5-25% more!
However, staging can be expensive. If you’re looking to do some home staging yourself, check out our post on DIY Home Staging Tips!
Myth: You should only consider buying a home in a school district if you have or are planning to have a family.
Fact: Homes located in desirable areas such as those in a school district or with many amenities will have a better resale value regardless of whether or not you have children. Don’t just consider your current needs—think about how the area will impact your home in the future.
Myth: You can skip the home inspection when buying a house.
Fact: While you can choose to forgo a home inspection when buying a home, it’s not recommended. Having a potential new home inspected before purchasing can reveal some important hidden problems that you may not want to deal with. At the very least, you could use it as a negotiation tactic when discussing the price of the home.
Myth: There’s no point in doing home renovations or fixing up your home if you’re going to sell it anyway.
Fact: When potential buyers are going through you’re home, they’re mentally taking note of all the things they will or won’t have to do after moving in. The more problems your house has, the more buyers will be adverse to putting in an offer.
The best approach is to maintain your home as best you can, and fix any big problems before going on the market. This can also help fetch a better price!
Myth: You should start house hunting before you’re pre-approved for a mortgage.
Fact: Starting your search for a home before you’re pre-approved for a mortgage can lead so heartache down the line. It’s never fun to find a home that you absolutely love, only to later learn there’s no way you can afford it.
It’s also helpful for your REALTOR® to know what price range you’re looking in, as they can scope out homes for you within that range. There’s a lot of misinformation out there! Remember to get advice from experts and second opinions when selling or buying your home.
