The Nigerian real estate industry is booming, and being able to separate the real from fantasies will help you make the right decision while stating calm at all times.
Like any other industry or business, real estate has its own potential outcomes. Many falsehoods have come to be accepted as facts in a field where everyone seems to conclude transactions while keeping their eyes shut.
For some people, real estate has turned into nothing less than a disaster as a result of these incorrect bits of information. You have found the ideal article if you are concerned about completing a real estate purchase soon because of anything your neighbor or a distant relative told you.
We have debunked 12 myths about real estate for you below.
The price is somewhat more negotiable the longer a property is on the market.
This is not necessarily true; it may even indicate the opposite. A property that sits on the market for a very long time is very likely to command its asking price as well as its location, condition, and layout. There are a lot of property sellers who are not desperate to sell and are willing to
hold on to their real estate as long as possible until they get someone who is willing to buy at their set price.
You will save money if you sell your home FSBO (for sale by owner).
In an effort to avoid paying commissions, many sellers try to sell their homes without the help of an agent, only to discover that it’s more difficult than they thought.
The truth is that FSBO sellers frequently face financial losses. Numerous things might lead to this. For instance, FSBO sellers may overprice their properties, which delays receiving offers for several months.
On the other hand, they could underprice the real estate and lose money. You may have heard of “buyer’s regret,” but “seller’s regret” exists as well. It occurs when you sell your house for much less than it is worth, maybe losing out on a lot of money.
To invest in real estate, you need to be wealthy enough.
This happens to be one of the biggest real estate misconceptions that frequently discourages individuals from investing in the industry. The notion that purchasing a home is a wise option, but only those with strong financial standing should invest. Investing in the real estate industry is a lot more easier today than ever before. If you are creditworthy, you can get a bank loan to fund the purchase of a house or land. Furthermore, a lot of real estate developers today accept installments, spread out for months and even years, making investing less expensive.
A home inspection is not necessary.
In the process of buying real estate, a thorough house inspection is essential. Some might reason that foregoing a professional house inspection would result in cost savings and would rather employ a friend or a family member to evaluate the property or evaluate the house themselves. It is advisable to hire a professional home inspector, as the professional is trained to detect home defects you might not really notice on your own.
In a situation where you get a relative or friend to help with the inspection of the property, you may be left with disappointments after making the purchase. As a result, it is always best to pick a house inspector that has a good reputation and experience.
It is even better if you are present with the inspector during the inspection, as this gives you the opportunity to ask as many questions as you can if you need more clarification.
Real estate is synonymous with easy money.
Many are of the notion that real estate is the ideal industry for making fast money. It seems to be the greatest myth ever! The line of work is not for the faint of heart. It is not at all as glitzy as it might seem. It is not an easy ride and requires as much quality time and effort as any other occupation. When you
Add to that the extra costs of logistics, inspections, lead generation, marketing, and many other things. It is not as pleasant as it seems.
Only buy a property when the market is favorable.
Anyone with a basic understanding of economics knows that the market can be unstable. Waiting for the market to rebound can cause you to miss out on some excellent investing opportunities. Instead of concentrating on external factors, you should concentrate on your personal financial situation.
It is a no-brainer not to be investing in real estate right now if you are strong enough financially to do so while the market is down.
Since the prices will be lower, you will profit financially. Selling your house will allow you to recoup your investment when the market improves.
Agents will essentially say anything to get a deal.
It is true that some individuals will do or say anything just to close a deal and make money, but it would be unreasonable to put every agent in that same box. You could be lied to by certain agents, but not all agents engage in such unethical behavior.
There are trustworthy individuals in the industry that will present you with the best offers and get you the most value for your investment. You just need to be cautious while choosing the right agent.
Agents with a great track record and a positive reputation in the industry are very cautious when dealing with clients.
It is better to overprice a home because the seller can always lower the price.
One of the most prevalent myths in real estate is this one. In order to protect their asking price, sellers believe that overpricing is a good defensive strategy against low-ball offers.
Breaking news: if you overprice your home, it may sit empty for a while without drawing much interest. A home has a much better chance of drawing the best traffic from the start if it is priced competitively from the start.
Sellers frequently respond to this misconception by saying, “Well, a buyer can always make an offer,” but the issue is that when you’ve overvalued it, buyers might not even look at the property in the first place, much less submit an offer. The price needs to be appealing.
You must make a lowball offer when making a home purchase offer.
Similar to how overpricing is a common mistake made by sellers, wanting to start with a really cheap offer is a common mistake made by buyers.
Negotiating is fine, but if the home is priced reasonably, making an absurdly low offer will just demotivate the seller and make you appear unprofessional.
You shouldn’t be shocked if you get a very small counteroffer or none at all.
Real estate transactions can be stressful.
Yes, real estate transactions might be challenging, but that does not imply that every transaction would be mentally taxing. While some transactions can be quick and simple, others can be a terrible ordeal.
Avoid investing while you are still young.
A lot of people are of the opinion that young people do not make the right decisions when it comes to real estate investing. They believe you have to be a certain age and have a lot of experience to embark on property investments.
However, the situation is entirely different in reality. Making a real estate investment when you are young can be beneficial. You have many more productive years ahead of you because of your youth and enough time to learn and grow. Furthermore, as you become more financially successful, loan repayments get easier.
Multiple price cuts demonstrate the seller’s desperation.
Multiple price reductions on a home for sale don’t necessarily indicate that the seller is in a hurry to sell it. Price cuts are only a strategy to put the property on par with its rivals. In order to encourage traffic and interest, the seller may underprice it or overprice it in order to negotiate later.
