10 Real Estate Myths — Busted!
Turns out the word on the street isn’t always true, and we’re here to set the record straight. The BRE team selected 10 real estate myths and together, we busted them. Keep reading to learn the truth about these common misconceptions.
“There are many factors at play in the buying and selling process, so it’s wise to partner with a Realtor® who has your best interest at heart.”
1. “Listing your home at a higher price than it’s worth creates room for negotiation.”
Sellers often believe that if they jack up the price of their home, they have a chance to profit more than the house is worth. Unfortunately, the real estate market is not like a local yard sale—bartering isn’t effective. There are often very specific elements in a home that create value, and overestimating the price can often lead to you profiting less than you thought you would. Additionally, buyers often won’t waste their time looking at a home that is incredibly overpriced, therefore this ideology could contribute to your home sitting on the market for months on end.
2. “You can get a better deal if you don’t use a Real Estate Agent.”
While you may think you are saving yourself money by cutting the middleman out, when you choose to buy and sell without a real estate agent you’re probably just adding unnecessary stress to your life and putting yourself in a vulnerable position.
Buying and selling a home can be a complicated process, but trust us—it doesn’t have to be. The thought process behind this tall-tale is that when you forgo a partnership with a Realtor®, you can save yourself a whole lot of money by avoiding their commission costs. However, what if your house sits on the market for months and causes you to significantly lower the price? What if the transaction is mishandled and that leads to a declined offer? There are many factors at play in the buying and selling process, so it’s wise to partner with a Realtor® who has your best interest at heart. Here’s a quick rundown of what BRE Realtors® bring to the table:
Attention to Detail - Mistakes in a purchasing agreement can often cost you more than the money you were trying to save. Our Realtors® are incredibly knowledgeable about the buying and selling process, and well-versed in all of the contracts that come along with it.
Superior Negotiating Skills - Remember that when you partner with a BRE Realtor®, their ultimate duty and goal is to get you the absolute best deal on your home—and we have experience doing just that. Our techniques come from years of experience, and they’re tried-and-true.
Fiduciary Duty- As a Realtor® it is our legal duty to act in our client’s best interest at all times. We serve as your built-in support system and go-to person for any questions or concerns you may have throughout the process.
3. “The market only goes up.”
Isaac Newton said it best—”What goes up, must come down.”—and this applies to almost everything, including the real estate market. Because the real estate market fluctuates each year, it’s important to understand that gaining equity in a home does not happen overnight. The best way to ensure you will gain equity in a property is if you hold onto it for many years. If you focus on homeownership being a long-term investment, you’ll have more peace of mind about the ebbs and flows of the market.
In a recent issue of SL Realtor® Magazine, there was a discussion about whether or not house sales and prices would plummet in Salt Lake County anytime soon. Clare Trapasso, Senior News Editor of realtor.com, shared her thoughts on the matter, “Aspiring buyers hoping that home prices will crash, like they did during the Great Recession, are likely in for a rude awakening. There simply aren’t enough homes being built to satisfy the hordes of buyers. And with more members of the giant millennial generation wanting single-family homes in which to raise their growing families, there isn’t likely to be a drop-off in demand anytime soon.”
For more information on the housing market in your area, call us! We are happy to share our insights with you and help you choose the best time to buy and sell.
“The best way to ensure you will gain equity in a property is if you hold onto it for many years.”
4. “You’ll always earn back what you spend on renovations.”
There are plenty of ways you can and should prepare your home before putting it on the market, but you may want to hold off on the extensive bathroom upgrades and custom flooring. Why? Because you can’t predict the preferences of the next buyer, and you’re unlikely to earn back what you paid for it. Don’t get us wrong—we appreciate and encourage great design, and we want you to have your dream home. However, it’s important to be realistic when you upgrade your home and understand that the improvements you’re making are often for you and you only.
5. “Open houses always sell homes.”
According to the National Association of Realtors, only 2% of open houses sell homes. So why do Realtors® continue to hold so many open houses? Because truthfully, it’s often a great way to meet new clients. When you consider holding an open house, it’s important to factor in all of the risks associated with it like theft, unprepared prospects and lack of one-on-one attention from your Realtor®. A serious buyer is more likely to schedule a showing than they are to show up at an open house, and an experienced Realtor® will have your best interest at heart.
6. “I need to find my dream home before I can list my current home.”
Many buyers tend to believe that it’s going to take them longer to find a home they love than it is to sell their current home, and this is usually never the case. To minimize stress, these are a few steps you should take before you embark on the quest for a new home.
Determine your budget
Get Pre-Qualified and Pre-Approved for your mortgage
Find the Right Realtor® (Hint: It’s a BRE Realtor®)
7. “Find your dream home and get pre-approved later!”
Although buying a home can and should be simplified with the support of a trusty Realtor®, the most complex part is often the financial process. To avoid any chance of disappointment and hassle, you should always be pre-approved before you begin house hunting—and most experienced Realtors® will require it.
8. “You should always ask your home inspector for real estate advice.”
Nope, that’s what your Realtor® is for! Home inspectors have a very specific role in the buying and selling process, and that is to assess the well-being of a home. They do not have insight on market trends, and won’t know enough about your personal and financial goals to give you sound advice. Trust us, if we think a home isn’t worth it, we will find you one that is.
9. “Zillow is the best real estate marketplace to find listings.”
Zillow is praised time and time again, and often seen as the best online real estate marketplace. However, using Zillow is not in your best interest and here’s why:
Zillow matches buyers and sellers with what they call a “premier agent”, who is often not an experienced Realtor® and pay up to $10,000/month for that moniker.
Zillow was created by tech gurus, not Realtors® and frankly, they care more about their algorithm than they do about building meaningful client relationships.
“Zestimates” are a result of a formula that guess the value of your home at best, with no research about the location, market or condition your home is in.
Bottom line is: Zillow matches buyers and sellers, and we do much more than that. We simplify the buying and selling process by applying our years of experience and knowledge about the Utah market to help you reach your goals. We offer support and guidance every step of the way. We negotiate on your behalf. We manage the legal aspects of each transaction, so you can focus on the best part—finding your dream home or investment property.
10. “You only have to worry about living near high-performing schools if you have kids.”
If you don’t have children, you may not care about how high the local school district’s test scores are or how close the nearest elementary, middle or high school is. However, when you buy a home it’s not just your lifestyle you are considering—it’s your investment, too.
According to the New York Times, high-performing schools can raise house prices by 2.5%. So before you say yes to the house, do a little research on schools in the area.
Now that you know the truth about the real estate industry, it’s your duty to protect your loved ones from believing in these false tales. Have another myth on your mind? Ask a BRE Realtor®! Call us at (801) 424-0900 or connect with us on our social channels!
