Top 4 Myths About Real Estate
Every industry has to contend with widely circulated real estate myths purported as fact; real estate isn’t any different. Unfortunately, many of the myths circulating in the real estate industry do sellers, buyers, and homeowners more harm than good. However, sellers remain the most affected by these myths. Sellers may be lead to develop false expectations, become wary of real estate agents, or even doubt their REALTORS® expertise because of all the misinformation.
So, here we go – let’s debunk four of these common real estate myths to help you navigate the property market with confidence.
Real Estate Myth #1: A Good House Sells Itself
If you are in the process of putting your home on the market – especially in New Brunswick – you may be under the impression that in this market, a home with remarkable features, proximity to amenities, and in an excellent state of repair will sell without much help. As far as real estate myths go, this one has always been floating around but is even more popular in the past year.
But is it true? Well, no. In fact, the opposite is true. Properties need a combination of expert marketing and exquisite features to sell. Even in a robust property market, a house won’t sell at a price that reflects the current market value unless it has tailored marketing to maximize exposure to potential buyers. In Fredericton, that current market value could be 118.8% more than it was when you last evaluated the property.
Furthermore, since buyers view several other homes with similar features they won’t be drawn to yours if you do not present your home in a manner that highlights its best features. This lack of communication can prevent buyers from making serious offers and drive down the property’s price.
You may still be foregoing tens of thousands of dollars of added value in this seller’s market even if you do get the price you have requested.
Real Estate Myth #2: All The Information You Need About Real Estate You Can Find Online
As a myth that affects both buyers and sellers, this real estate myth is most detrimental. Even with the wealth of information available online, a transaction that involves large sums of money should never be made based on advice given by faceless online experts.
When evaluating the information available online, you should understand that it will never directly pertain to your particular circumstances. It is generic. If you decide to act based on the information you read online, you may end up in a position that doesn’t resolve your concerns, worsens them, or – in extreme cases – causes you to create problems that were never there. You may be left with nowhere to turn to if you need additional advice or guidance.
You can save yourself this unfortunate experience and speak to experts who will make it a point to understand your circumstances before making any recommendations on how you may want to proceed to achieve your real estate goals.
And yes, we realize you are reading this online right now. So, we’d urge you to reach out to our team with any real estate questions you may have.
Real Estate Myth #3: Listing At A Higher Price Leaves Room For Negotiation
Ambitious sellers may view the recent sales boom as an opportunity to list their home considerably higher than its true market value. The justification is that this will solicit higher offers or give the seller room for negotiation. Simply put: this strategy is flawed. Instead of the negotiation process sellers envision, buyers may be turned off by the price and avoid making offers or even booking showings at all.
Buyers can determine – with little effort – that a home is overpriced based on other listings in the area and with the advice of their own REALTOR®.
At this point, the next step to attract attention to the home is reducing the listing price. This is rare in a seller’s market. While you may be able to revive interest and spark some competition among buyers, it’s always preferable to do so at the start when your home is the hottest new listing on the market!
The preferred strategy in every market is to list your property at a price that reflects its market value. If you are unsure what that price should be, discuss it with your real estate agent.
Real Estate Myth #4: Spring Is The Best Time To List A Home
There is some truth to this myth. Spring usually sees the greatest new listing figures than any other season. The weather is changing and lawns look more appealing. Additionally, buyers are likely to venture to view listings given the warmer temperatures spring and summer offer.
However, this strategy could see you lose out on sales that may happen during the slower seasons. Buyers search throughout the year, and it only takes one buyer to make a sale! When inventory is low – particularly in the winter and autumn months – you could maximize that lack of inventory to secure a better price and expedite a sale.
If you’re considering buying or selling a home, the first thing on your to-do list should be to contact an experienced real estate agent. The purpose of an agent (besides facilitating a successful transaction) is to answer your questions and clear up any misconceptions you have thanks to real estate myths you may have heard. Additionally, if you aim to sell or buy a property without stress, relying on your agent’s expertise is vital. Remember, your real estate agent has access to data and real-world exposure that helps them to work to your advantage. The myths listed above only hinder what can be a straightforward and advantageous transaction.
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