Misbeliefs and bad information are a dangerous combination and there are quite a number of misconceptions about real estate.
The sector is plagued with wrong assumptions held by people about real estate agents and investors. People don’t know what they don’t know, and what they do know is enough to create false perceptions of the profession. Propertydome would be addressing some of these misconceptions about real estate in this article.
Real Estate means Easy Money: On the contrary, the real estate industry is quite challenging to thrive in. Some people feel like it is the right business to earn quick money but that is not the way it works. Those real estate agents you see driving big cars that you think they got through some easy means have built long-term relationships with clients who provide referral and business for them in the real estate industry. This takes time and dedication.
Nothing about the real estate industry is as glamorous as it sounds. It is tough and demands as much time and energy as any other profession, if not more. In fact, when you add the extra expenses incurred in the form of marketing events, showing plots and houses around then you would see it is not as charming as it looks.
Higher price, Higher Gain: Another one of the misconceptions about real estate is that sellers and property developers increase prices of houses ridiculously to gain higher. If sellers do this, it would only backfire on them because they are supposed to compare current prices of homes in a particular area before setting their price. Hence pricing is ridiculous would just mean making the house sit in the market for a while without having serious clients until they sell it for peanuts.
As a seller, making an effort to price your property reasonably doesn’t mean you are not going to get a good ROI on your property so do not be greedy.
The Longer a house is in the market, the more negotiable it is: This is false and is certainly one of the common misconceptions about real estate. I wonder why people believe it. A house is as negotiable as the owner or seller wants it to be and is not based on how long it stays in the market. It may still be in the market for other reasons and not necessarily price, that is, the price may already be negotiable but the house is yet to be sold due to reasons like no upgrade, low appeal and wrong agent.
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No Real estate agent is needed to sell your home: Yes, your house can be sold without you employing the services of a real estate agent but this does not in any way mean that their services are not “needed”. Agents are experts in listing your home in the right places and setting up your home to be shown to prospective buyers.
Real estate agents have the experience, access to buyers, the resources and good negotiating skills. However, it is not impossible to sell your home without a real estate agent but the assumption that they are not needed is a myth. In some places, it is compulsory for you to have agents due to specific paperwork they have to sign.
You do not need house inspections: This is such a myth. If you do not inspect the house you are about buying or renting a property you would have yourself to blame in the long run. It is best you take your time and inspect the house well if you can hire a professional like a house inspector to help you through. This would save you from unpleasant surprises after your purchase.
House inspectors look for more than 1,600 specific items in the home, helping you avoid tricks that hide a home’s flaws.
Real Estate market prices are always up: This is not true. The housing market drops sometimes. In recent years, the real estate market has also seen sluggish growth. People buying and selling homes have experienced a time of increasing home values, then a sharp decline during the economic downturn and now another period of increasing values.
If you think the market goes only up, then think again. The recent recession should be proof that anything can happen and that real estate prices can indeed fall.
