5 Most Common Real Estate Myths Debunked!
If this your first time looking in to real estate? Make sure you read this article to steer clear of the widespread myths that can fog your judgment…
Real estate is one of those unlucky businesses that suffer from the curse of misinformation pretty often.
Because there are apparently dozens of foolish myths about the real estate business floating around all over the place! These myths, believed to be true, have been behind so many bad property deals for people trying their luck in real estate without prior experience or professional help.
If you're a first-timer in real estate this article is for YOU to read. Why you might ask? Because in this article we're going to bust the FIVE most common myths of real estate so that you can avoid them and think realistically while looking to buy or sell your property
So, let's burst the first bubble…
1) Selling Your Home Alone Saves Money (For Sale By Owner)
Yeah, that's a myth and a BIG one…
A survey in 2020 showed that the houses that were sold by their owner without taking any agent's services went for an average of $77,100 less than those who sold their home with the help of a Realtor.
See the difference?
You could lose thousands of dollars just believing that you can sell your house alone. A broker or agent will take their cut, BUT as you can see in the numbers it's totally worth it. Unfortunately you cannot match their expertise, experience, and skills when it comes to selling houses for top dollar.
So, no you won't save by not hiring a property agent, in fact you'll lose…
2) A 20% Down Payment Is A Must
That’s another real estate urban legend!
Having enough cash at hand so you can put down 20% upfront is great (and ideal) but that's definitely not the norm.
The market is pretty well stocked with all the different kinds of programs that require a down payment of as little as only 5% of the total value, and if you are first time home buyer there are a ton of other ways you can have access to more money to get into your first home.
3) Pre-Approval Is Secured After Spotting Your Perfect Home
What a ludicrous myth that is anyway, but still most think it true.
So, getting pre-approved for a loan is not done after you've chosen your dream house, it's done before you even begin on your house hunting. Actually, there are two really good reasons behind that…
First, you'd HATE to fall in love with a house that you later find out is way over your affordability range.
And, secondly, in case of a bidding war those with a pre-approved loan always have an edge over the other bidders since they have proof of their buying power.
4) Agents Can Only Show the Listings That are Listed With Their Brokerage
A real estate agent can not only show the listings that are listed through their brokerage but they can also show any listing that is on the MLS.
For instance, an agent representing Remax, a Canadian real estate company, can also show the properties listed with other companies like Stonehaus Realty, etc.
5) It’s too expensive to get into the market now
This is a big one now a days, and given that in Canada we are in what experts are calling a housing affordability crisis we'll take this Myth a bit more seriously.
We've all heard this once, and while Yes, the markets can fluctuate there’s one thing you need to remember. Timing the market isn’t nearly as important as time in the market.
Ten years ago it was expensive to invest, but guess what? Prices have continued to climb, so all the people who invested ten, twenty or thirty years ago have seen their homes rise in value. Everyone who waited ended up paying more.
Go back for the last 50 years and you’ll see the same thing.
Our advice when it comes to deciding when to buy is to look at your own financial situation and consider your long-term goals, and forget about timing the markets. Remember, when it comes to investing in real estate, today is not as good as yesterday, but it’s always better than tomorrow.
Now, what do you take away from here?
Don't you let yourself get fooled by myths! Make sure you read, study, analyze, and be well informed when you begin your journey in real estate.
The above five are not ALL the myths, they're just the top ones. There are a lot more out there!
Just do your research, and be sure not to fall for them!