Buying or selling a house is something many of us will only experience very few times in our lives. While there are the exceptions, in general, it’s not an activity that the average citizen should be an expert on, and knowledge of the process is for the most part limited to what we hear from the experiences of others.
Among what we hear, see on TV and read online, there are several non-truths floating about concerning real estate that are sometimes mistakenly and detrimentally thought to be factual. As with any topic, you cannot believe everything that the internet tells you.
The unfortunate side of taking a piece of information to be true that is actually a myth is that it can ultimately cost you money when it comes time for you to buy or sell a home.
Here are a few common real estate myths that you should watch out for:
You can get a better deal if you do not use a real estate agent.
This is a common misconception whether you are on the buying or the selling side. For the former, if a house is listed with a real estate agent, the total sales commission is built into the price. If you buy without an agent, then the seller’s agent receives the entire commission. For the latter, it is not unheard of to sell a home on your own, but often buyers expect a discount when you do. You also have to know how to list your home online, market the home, negotiate the contract and deal with issues that may come up in the inspection or loan application phase.
You should always set your home price higher than what you expect to get.
If you list your home too high, it is possible that buyers will not even consider it if it is above market value. You can always lower the price of your home, but buyers are often suspicious of homes that have been on the market for too long.
You do not need to prepare your home to sell.
Making necessary preparations for your home to go on the market can be the difference between it selling quickly or sitting on the market for a long period of time. Buyers these days are more often looking for homes that are move-in ready. That being said, do not list your home until you have taken steps like staging, cleaning and minor improvements.
Sellers can expect to earn back everything they invested in remodeling projects at resale time.
According to the annual “Cost vs. Value” survey by Remodeling magazine, it is nearly impossible for sellers to get a 100 percent return on the money they put into a redo. The survey shows that you are likely to only recoup 67.8 percent of what you spend on a major kitchen remodel and 70 percent on a bathroom remodel for an average home.
You should wait until spring to list your home.
While real estate is seasonal, in some parts of the country more than others, many buyers start their home searches in January rather than waiting until March or April. According to a study cited in The Washington Post, 51 percent of homes listed in the winter sold above asking price over the past five years compared to 50 percent in the spring. Ultimately though, you should list your home whenever it is most convenient for you.
You do not need an inspection for a new construction or recent remodel.
Sometimes buyers think that there could not possibly be anything wrong with a home that is new or recently renovated. However, this is false. Imperfections can range from an improperly-installed dryer vent to faulty wiring. It is in the buyer’s best interest to get a thorough inspection.
Part of finding success when buying or selling a home is being informed! Use your instincts, and do not necessarily believe everything that you read or hear from your coworkers or relatives.
For all of your real estate needs in the Auburn-Opelika area, contact Realtor Ryan Roberts at 334-750-9872.
