Real Estate: 5 Most Common Myths Unveiled
Over the years, you’ve heard at least one of the many real estate tips that have circulated based on the experiences and research of homebuyers. Whether you choose to believe these real estate myths is up to you, but do any of them actually hold any truth?
Real Estate Myth #1: You can get a better deal on a house without a real estate agent.
False.
Real estate agents earn a commission on their sales at an average rate of 5-6%. Some buyers assume they can forgo paying for this commission by skipping out on a real estate agent– but that is in fact false. Commission is actually built into the price of the house, and if the buyers don’t have an agent, the entire commission goes to the seller’s agent.
Real Estate Myth #2: You should remodel your bathroom and kitchen before you sell your home.
True and False.
Unless your kitchen and/or bathroom need a serious upgrade, you shouldn’t feel obligated to do an entire renovation. If there are some major plumbing issues or your appliances are completely outdated, then a remodel may be necessary. Many buyers like to put their own spin on the kitchen and bathroom they’re about to buy, so that may be something you should leave up to them.
Real Estate Myth #3: Never buy the biggest house on the street.
True.
The biggest house on the block is generally the most expensive; therefore, its appraisal is significantly affected, making its price much higher than other homes in the same neighborhood. Buying or building the biggest home on the block may lead to a slow appreciation in the value of that home, due to the fact that the other homes in the neighborhood are not as large or as modern.
Real Estate Myth #4: If buyers hate the exterior of a home, they are less likely to bother looking inside.
True.
A home’s curb appeal makes or breaks a potential buyer’s interest in a home. If buyers hate the outside, they often don’t want to waste their time going inside. It is in the seller’s best interest to make sure the outside of their home looks clean and maintained.
Real Estate Myth #5: The housing market can only go up.
False.
While the market may be doing fairly well now, that does not mean it can’t change. During the recession that ended in 2009, many homes lost value, aiding in the collapse of the real estate market. If the unemployment rate rises and incomes fall, people will may be forced to sell their homes. When homes aren’t selling, sellers become desperate and accept less money for their property as they try to lower the amount they would lose on the investment.
What other real estate myths have you heard? Let us know in the comments below!