If you’re new to world of Real Estate, you’ll undoubtably be influenced by some of the common rumours associated with the industry. Most likely, you’ve encountered some of these common myths by word of mouth or even one of the many “reality” TV shows that you’ve probably seen. However, if you’re looking to buy or sell a house, a little clarity might just help you along your way. Here are some real estate misconceptions and myths that you’ve probably heard from one source or another:
1. You do not need a real estate sales representative now that you can access the information online
Buying a home can be a daunting task, especially for the first time buyer. So it’s quite important to have a seasoned real estate sales representative to represent your interests. Sales representatives understand the process of buying and selling homes, and will advise you properly on all your market decisions. There is a common misconception in real estate today that buying a home using online information will result in getting a better deal. This is because there will be no commissions or “cuts” to the real estate sales representative, right? Wrong on two fronts:
1) There is a significant amount of information online that is invalid or, worse, dishonest. Real estate sales representatives are bound by their code of ethics to be honest (or face steep consequences); individuals are not bound by such rules. Buyer beware.
2) Unless you’ve negotiated the purchase and sale of many homes, study the market daily and know the process inside-out, you may be missing something that a seasoned sales representative would not. A sales representative knows what to look for in a home, and knows the questions to ask that could save you thousands on your home purchase.
2. All real estate sales representatives are the same
Another common misconception for home buyers and sellers is to think that all real estate sales representatives are the same. Most home buyers and sellers believe that any sales representative is qualified to represent their interests. Far from the truth. Think about it this way: every player in the NHL is a paid professional, but there are only a select few who you’d want on the ice to score the big goal in the final minute. The same goes for the purchase or sale of your home: you can use any real estate salesperson, but you’ll probably feel much more comfortable with the seasoned professional with a reputation for big-time results. Your home is a huge investment – it matters who you work with.
3. You need 20% down payment to buy a home
There are millions of young people struggling financially with huge student debts. Since the recession, it was quite hard for millennials to buy homes. According to studies, this was a result of strict financing and the need for down payments. However, things have changed in recent times. First time home buyers are now often overwhelmed by the many financing options available. There are many financing loans and mortgages available as long as you have a verifiable source of income and a good credit. This means that there is no more need for the mythical 20% down payment.
4. Spring is the perfect time to sell your home
During the past decade, many home buyers came to the market to look for a home in spring just before the start of the school year. This made most home sellers believe that spring is the best time to sell homes. Presently however, not all home buyers are families with children attending school. Buyers can be millennials, single men and women, or couples who are not even focused on the school calendar. Regardless of the month, if your home is prepared properly, priced effectively, and marketed professionally, it will sell. No matter the season, if the home shows well, it will sell and thats the bottom line.
5. You do not need an open house to sell a home
Can you sell without hosting an open house? Yes. But what if you’re missing one or many buyers who only shop via open house? That could cost you a sale or multiple offers – both of which cost you money. Also, an open house can provide you with valuable feedback on your home in a short period of time. Maybe there’s one or more things that home buyers just don’t like about your house. Imagine having your house on the market for months without knowing THE REASON your home isn’t selling. A well-planned open house, hosted by an experienced sales representative, can get you to the finish line faster.