When you tell people you plan on doing anything real estate-related, whether it's buying or selling a home, investing, or something else, it's likely you will receive unsolicited advice. Unfortunately, well-meaning advice from someone who isn't a real estate professional may not be helpful. That's where we come in. We're here to debunk the top five real estate myths.
1. It's Fine to Skip the Inspection
Many homebuyers believe they can skip a home inspection to save money when buying a home. This is done for a variety of reasons, from wanting to save money, to thinking the house will be bought faster by another buyer who will waive the inspection, or because a property is new or recently renovated.
A thorough home inspection is well worth the money spent. If buyers skip this important step, they will be buying a home as-is, including any problems that come with it. In the long run, getting a home inspection can save a lot of time and money.
A thorough home inspection is well worth the money spent. If buyers skip this important step, they will be buying a home as-is, including any problems that come with it. In the long run, getting a home inspection can save a lot of time and money.
2. Financing is Figured Out After You Find Your Perfect Home
A lot of homebuyers believe that they don't have to get pre-approved for a mortgage until after they have found their home. Getting pre-approved for a mortgage before house hunting saves time and frustration.
Buyers who decide to house hunt before getting pre-approved can be disappointed if they set their hearts on a home above their price range and are declined for a mortgage. A buyer who has been pre-approved also has an advantage in a multiple offer situation due to the fact that a seller is more likely to choose a buyer who is already pre-approved than one who isn't.
Buyers who decide to house hunt before getting pre-approved can be disappointed if they set their hearts on a home above their price range and are declined for a mortgage. A buyer who has been pre-approved also has an advantage in a multiple offer situation due to the fact that a seller is more likely to choose a buyer who is already pre-approved than one who isn't.
3. Selling a House "For Sale By Owner" Saves Money
Sellers who want to sell their home "for sale by owner" typically believe it will save them a lot of money because they don't have to hire a real estate agent. In reality, hiring a real estate agent can actually save sellers money. Real estate agents have experience in the industry, insider knowledge, and great negotiating skills. Utilizing the experience of a real estate professional is advised over the DIY method of selling a home "for sale by owner."
4. You Should Price Your Home to Leave Room for Negotitations
Pricing a home higher than it is worth in order to leave room for negotiations sounds like a good idea, but can leave a house sitting on the market for a long period of time. Correctly pricing a home is critical when trying to sell, as buyers generally won't waste their time on homes that are overpriced. A real estate agent can provide a market analysis, which helps sellers determine a price based on similar homes that have sold in the area.
5. Real Estate Agents Can Only Show Their Own Companies Listings
Any real estate agent who belongs to their local real estate board and multiple listing service (MLS) has access to all listings that are multiple listed. An agent that works for one real estate agency can absolutely show properties that are listed by other real estate agencies.
Have Any Questions?
If you have any questions about common real estate myths, or think we overlooked any, leave a comment in the comment section below! We would love to hear from you.
