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Discrediting the Top Five Myths of Real Estate

Most people have heard an urban legend and believed it at one time or another. After all, who hasn't been cautious around an earwig, because it is believed to crawl into the ears of unsuspecting victims and eat away at their brains? Still, like the earwig myth, many legends and myths are simply not true. Here are five myths about real estate that are widely deemed to be accurate even though they are not.


1

Real estate agents with a large amount of experience always perform better than their less-experienced counterparts.

Experience in the real estate business can certainly give an agent an advantage, but it does not necessarily mean that the agent is more proficient or competent than one of their counterparts. The most essential qualities of a great real estate agent include integrity, people skills, real estate knowledge and initiative. If you are planning to hire a real estate agent to help you sell or buy a home, be sure to listen to each prospective agent’s answers as you interview candidates for the job. Often, an agent’s attitude, knowledge base and sincerity will be displayed in his or her responses.

2

Selecting a home that is for-sale-by-owner will always yield great monetary savings for a buyer.

Most buyers who choose to purchase a home that is for-sale-by-owner are trying to avoid spending any extra money unnecessarily. However, many of these buyers do not consider that the homeowners who are selling their property without a realtor are trying to save money too. As a result, it is unlikely that buyers will be able to purchase the home of their dreams at a price well below market value using this tactic. In addition, since most buyers have limited real estate experience, their ability to negotiate skillfully may not be sufficient to obtain the best price for the home.

3

Being the first buyer to submit an offer gives you negotiating priority.

A homeowner is not obligated to respond to the first offer that he or she receives on a home. Instead, the homeowner can choose to deal with subsequent offers while pushing the first offer to the side. In such a case, the prospective buyer who submitted the first offer may believe that he or she is being treated unfairly. Nevertheless, a seller is well within his or her rights when choosing to entertain a subsequent proposal instead of the first one received.

4

It is always best to present an offer that gives you wiggle room.

Presenting an offer on a home that is significantly less than your best is not always wise. In some instances, this low-ball style of negotiating can cause you to lose a home that you really want. Instead of immediately submitting a low offer, before bidding, it is best to consider several factors that affect the home’s price, such as the seller’s circumstances and reasons for selling, the statistical data concerning real estate trends in the area and the actual value of the home.

5

When you sell your home, you always recover all of the money
you have spent on renovation.

Although renovating your home may cause it to sell more quickly, you may not recover all of the money you have spent on upgrades. In fact, according to the 2015 Cost vs. Value Report that was listed in Remodeling magazine, for major kitchen remodeling projects, homeowners only recover about 67.8 percent of what they spend. In addition, if a seller chooses to remodel a bathroom in a mid-priced home, he or she can only expect to recover about 70 percent of the money that was spent during the remodel. For a renovation that offers a 100-percent investment recoupment, consider purchasing a new front door.

Most realtors are able to offer sellers and buyers accurate information and great professional guidance. People who attempt to navigate the real estate market without the help of a realtor are often disappointed in the outcome of their transactions. It is important for real estate clients to have the information necessary to make reasonable, educated decisions concerning the purchase or sale of a home. If you are planning to buy or sell a property, be sure to secure the help of a real estate professional that you trust.