In this article, I will share ten crazy real estate myths people still believe in today. They think all of them are real. On social media, some scary advice is floating all around all the time from unqualified newbie agents or friends. Nowadays, people do not think twice before believing them. The myths have become the new truth in this modern era and the reason for suffering for an average human being.
The Ten Crazy Real Estate Myth
I am sure that everybody has experienced some kind of real estate myth in their lifetime. Most of them come as a piece of free advice, and you know free advice is the most dangerous thing in this world. But worry not. You will know that all those myths are not real, and you must not trust them before verifying the root cause of it. Here are the top ten real estate myths people still believe in today.
Table of Contents
1. Set your Asking Price Higher than the Average
Do not do this. Most home buyers are suspicious of homes that are on the market for more than a month, and they will think that it has a problem. That is why no one has bought the house till now.
I know it looks very logical to you that when you set your price high and lower it if the buyer asks for it, you will have a better chance to sell it. But that is not true in the real world.
Home buyers and agents often don’t even look at homes that are priced above market value. So know what is the actual value of your house by hiring an analyst and then setting the asking price. It will sell faster.
2. Sell the House Yourself and Make More Money
I would say this real estate myth is more damaging than all on our list. It can lead to fraud and legal problems. If you know nothing about listing a home online, market the house to buyers, negotiate the agreement, and then deal with any disputes that may appear during the process. Then you should hire an agent to do the job.
If you try to sell the house yourself, you will find buyers who expect a discount, lowering your profit margin. But if you hire a good agent, he will find you a good buyer who will pay more, covering his commission fees as well. So this property myth is not logical, and you should not fall for it.
3. The Home Inspection is just a Waste of Money
You may think that I can save some bucks by not doing the inspection, as it may not be required for the house. But you are wrong. You must hire a home inspector to sell it faster and with profit.
Professional home inspectors look for more than 1,000 specific items in the house and help you find any problems that may damage your house’s reputation in the eyes of a buyer, making your house more valuable.
4. No One Buys a Distressed House
No, they do. People do buy distressed hoe if your asking price is justified to that. If your house needs rehab, then it does not mean people will not buy it. Yes, you will get less money, but it will sell.
Most house flippers look for distressed properties to renovate and sell for a profit. They are your ideal customer. So if your home needs some work and maintenance and you do not want to do it, find an investor who flips properties.
5. You can Get a Better Deal Yourself
Like the home inspector, a few people think that a real estate agent is also a waste of money and they can find a better deal. No, you can not if you do not have that experience and do not have a huge network base. Hire a good agent and list your house. Do not fall for this real estate myth.
6. Home Staging is a Must to Sell the House Faster
NAR says staged homes sell 90 percent faster on average than non-staged homes. But it comes with a cost that most people can not afford, especially when they need quick cash.
Staging a home is a good task, but that may not help you in selling your house faster if the asking price is higher. People first look at the asking price and then look for other things. Price the house according to the market price, and it will sell.
7. The Housing Market Always Goes Up
Really! Who told you this? Home price goes up but not always. It depends on many factors, like the market condition, location of the house, demand, and supply in the market, jobs, new business, and many more.
The recent recession has proved that home prices may fall as you may have sold they fell up to 10 percent than their initial price. Yes, the price will not go down to zero, but it may hinder your profit if you think it always goes up.
8. You can Easily Negotiate the Agent’s Commission
People believe this real estate myth by thinking they can reduce the commission agents charge. No, you can not reduce them. They are fixed at 1 percent. In some areas, it’s 2 percent. If you are taking help from an agent, you have to follow their rules. You have to respect them.
9. List your House with an Expert
Sometimes you do not need an expert to list your house. Listing a house is easy, and any agent can do it. You can do it yourself through online marketplaces. But selling it faster is another thing. Then you may need a good agent. But you can list it without an expert.
10. Open Houses are just a Waste of Time
You may think people are tech-savvy nowadays. They do not attend open houses, and those who come are not good buyers. That is not completely true. Some people watch the listing on the web and then come to the open house for more info.
Some agent also comes to the network, increasing your chance of getting new leads. Some do come for the first time as a new buyer. If your presentation is good enough, they will try to know more. So these open houses are never a waste of time. It helps in many ways as a real estate agent.
So these are the top ten real estate myths people still believe today. But you must not believe them as I have shared the data behind them and how you can contact them by doing the necessary research. I hope this article will help you. Thanks for reading.