In general terms, we are all likely to be uninformed about the process of buying a house as a first-time buyer. We believe that spending money on a real estate agent is expensive but the truth is that you are always better off working with a pro. We don’t buy houses everyday and if at all we do it can be once in a life time. We have developed certain myths about real estate from the experiences of others or from what we read on the net. But not all you read is reliable and so just take it with a grain of salt. Here are some misconceptions about real estate that will land you into trouble.
#1. You can save money selling your home yourself
Some people do actually really great in selling their homes by themselves but not everyone is lucky with that. You need skills to get the house on the market, negotiate contracts, market to prospective buyers and a whole lot of paper work to do. Do you think you can do all of these on your own. It can get pretty exhausting and that is why you need a real estate agent.
#2. The market will only go up
This is a very unrealistic concept most people have because the market is not constant and changes occur every now and then. Home values go up frequently and there are times it goes way down. Therefore don’t get your hopes up without preparing for unexpected downfall.
#3. All real estate agents are the same
You will be making a big mistake by believing that all real estate agents are the same when trying to select one. All real agents have different skills, traits and experiences. They are humans as well and not two individuals are the same. Take for instance, an agent with 20 years working experience has more knowledge and know how than an agent with 2 years experience.
#4. You should renovate your kitchen and bathroom before selling it
One thing you should know is that not everyone shares your taste and preferences. Most prospective buyers want to put their own spin to things and you renovating the kitchen and bathroom changes their view of the house altogether.
#5. You will earn back what you spend on renovation
Try fixing heating, air conditioning system or roof with the hope that you will get back what you spent. This is never a guarantee when doing renovation although it will make you sell the house quickly.
#6. Set your home price higher than what you expect
This idea can actually backfire because you have to realize that there are other houses out there in the market at reasonable prices. You may actually get a lower price for your house in the end. People also get suspicious of a house that has been in the market for too long.