5 Common Misconceptions of Real Estate

The words Real Estate can be an intimidating word for some, but if you are inherently interested in buying or selling real estate, don’t let the word alone scare you. You may be surprised how easy it can be. Here are the most common misconceptions about real estate.

You don’t need a real estate agent with all the information on line

Having a professional real estate agent in your corner is the best thing you can do for yourself. You can read all you want about the process of home buying/selling, but the professional offers their knowledge of the market, which comes through experience. They can also be there to help you make sense of the data that slips between the lines, which you may not understand. Lastly they help you through the emotional part of purchasing/letting go of a home.

You need 20% down to buy a home

This is the biggest misconception for people. Millennials often believe this because they’ve got crippling student debt with no end in sight. Once the market crash in 2008, lending became difficult, and the finances of a deal could kill it instantly. Today you can get a loan with 3% down, but you will be required to buy Private Mortgage Insurance PMI. It also helps to have great credit, some hefty assets, and a healthy income.

My homes value is what the appraiser says it is

The true value of a home is determined by what a buyer is willing to buy it for, and what a seller is willing to sell it for. The appraiser gives the ballpark range in which you should consider. Keep in mind finishes, views, fixtures, and neighbors can affect your homes appraisal.

Spring is the best time to sell a house

Typically, buyers enter the market in the spring to get ready for the new school year. This has made people think this is the best time, when in fact, it is just the busiest. Not all buyers are families though, there are still baby-boomers, downsizers, single women, etc. who don’t even pay attention to the school calendar. The best time to s4ell your home is when inventory is low, which is usually dead of winter.

Open houses aren’t needed to sell a house

Many people believe with all the information out there, having an open house isn’t necessary. Not true. Open houses are the core fabric of real estate, and the more open it is to potential buyers, the better chance you have of selling it. When you host an open house, you are opening your doors to the buyers of the city. Without these, they may never set foot in your home. 

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