Last month we gave you 3 real estate myths that tend to circulates online and among buyers and sellers. Lots of these myths can cost everyone involved in a real estate transaction precious time and money. To help lay these real estate myths to rest and to keep you better informed, here is our second installment of real estate myths debunked!
Myth: Sellers should expect to earn back what they put in to renovations.
Springing to replace old and outdated appliances will almost always pay off, as they will make the whole kitchen seem fresh and new. The same goes for structural details like new roofing, a sturdy and long-lasting front door and a fresh coat of paint. All create a great return on investment.
Reality: When it comes to adding value to your home, it’s best to stick with the updates that are the most pertinent and fundamental. Where things start to go wrong is during big and elaborate renovations. Overly personalized or ornate details may turn potential buyers off since they are hard to replace or rework. The truth is, most buyers aren’t going to share your exact taste and will end up making adjustments to suit their needs. It’s best to focus your money on the basics and skip the customizations.
Myth: When selling a home, price it to leave room for negotiation.
One of the most popular real estate myths out there is that you should price your home higher than what you’d like in order to leave room for negotiation. While this sounds like it might be the ideal situation to sell your home, it can actually lead to not selling your home at all.
Reality: Pricing a home correctly is one of the top three most important things when selling a home. Due to the amount of information available through the internet, buyers are more savvy and educated than ever before. A well informed buyer will not waste their time looking at an overpriced home. If you decide to list too high right off the bat, it will deter many potential buyers.
Myth: Real estate agents will say and do anything to make a sale.
Just like in any other profession or walk of life, it’s true that you will run into those who are willing to stretch the truth or even flat out lie. However, this myth does not apply to the majority of real estate agents and it is unfair to cast all real estate agents in this light.
Reality: A real estate agent’s business relies heavily on referrals, repeat business, word of mouth, and the reputation that they build for themselves. Agents are unlikely to receive any of the aforementioned if they are blatantly lying to their clients. Real estate agents also follow a strict code of ethics, as well as many rules and regulations. Therefore, misrepresentations and false statements are against the law. Agents who break fiduciary relationships or fail to disclose material facts can be subject to prosecution and lose their license to sell real estate.