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Real Estate Myths Part 1

Whether you’re a real estate rookie or have years of experience, there are a lot of real estate myths out there to be aware of. Let’s bust some common ones!

The first myth is that when it comes to home inspections they either pass or fail. While some inspections may do that, such as radon inspection or termite inspections, the home inspection is much larger. The purpose is to assess the total current condition of the home, so it doesn’t necessarily pass or a fail. There are various things that go into home inspections and many variables to consider based on the results that are found.

Another real estate myth is that you get a better deal when going directly through the listing agent for a home that you’re interested in buying. This isn’t necessarily the case though: in that situation, the agent becomes a dual agent. In dual agency, there are special guidelines that direct those types of transactions. Alternatively, if you are working with a buyer’s agent who isn’t representing the seller as well, you can get additional information and better guidance through process because the buyer’s agent is working solely on your behalf. If you’re represented by the listing agent, the listing agent is also working on the sellers behalf and can’t give you complete loyalty.

One of the biggest myths in real estate is that it’s a good idea to search for homes before getting pre-approved from a lender. While it can be done that way, like if you’re kind of on the edge of trying to figure out where you’re going to move or you’re just trying to gauge what’s out there in the market. But the best practice is to get that pre-approval first, which means having a conversation with a local lender or mortgage broker you feel comfortable with. They’ll be able to provide the guidelines and parameters that will help your agent search for homes that fit not just your wants, but your financial situation as well.

Another common myth is that selling your home by yourself (for sale by owner) will save you money. This can sometimes be the case if you understand the process really well. But most of the time it involves way more work than sellers realize. There are many factors when selling a home: from scheduling to contracts to inspections, these are all pieces that real estate agents can work on your behalf to help you with those and minimize your responsibilities. Also, your agent can provide an in-depth market analysis to make sure that your listing is priced optimally rather than guessing. When working with real estate agents, they will put the list in the multiple listing service (MLS), which signals to other agents that you’re willing to work with them if they were to bring a buyer to you. This essentially opens up the door for many more potential clients or customers that might purchase your home.

Lastly, one myth that can cost you a lot of money is that to sell your home you have to renovate it or complete some huge project. While most buyers do prefer a move-in ready home, if you go and spend tons of money to redo your kitchen or bathroom, you probably won’t get the full value out of it. In most cases, just adding a $20,000 kitchen doesn’t equate to a $20,000 increase in the purchase price or sell price of the home. Having an agent examine your home and do a property evaluation to determine if there are any things that need to be updated or improved would be the best first step. Keep in mind there are many buyers out there that will purchase property in various different conditions based on their needs!

To connect with us about any of your home buying and selling needs, you can call our team of professionals at 217-422-3335.

Enjoyed this article? Check out Staging Your Home for a Successful Sale or Home Remodel Mistakes.

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