No doubt about it. Working with a skilled local agent can help you avoid pitfalls when you’re purchasing a home—or putting one on the market. Whichever major life step you’re taking, it pays to go into the process with as much background as possible. That includes information about some of the most common real estate myths out there.
Here are five industry misconceptions to know when you’re thinking of entering the market…
1) You don’t need pre-approval when you’re buying
Some home buyers opt to forgo mortgage pre-approval, but that can be a mistake. This step, which consists of having a lender look closely at your finances to determine how much mortgage you’ll likely receive, is crucial.
It’s a great starting point when you’re setting a home-hunting budget. Just as importantly, it shows sellers you’re a serious buyer—and that can make a difference when you’re competing with others.
2) You always need an inspection for a resale condo
If you’re buying a resale unit, the choice of whether to pay for an inspection belongs to you. These assessments don’t include building systems (like plumbing and electrical) or common areas (such as the roof). That’s because the upkeep of these components is covered by the condo corporation and owners’ monthly fees.
The truth is, many buyers find that relying on their status certificate is much more useful. While having your lawyer review this critical document can simplify the offer and buying process, there are times when having an inspection is important. For example, if a unit has its own heating and cooling unit (which you’ll be responsible for), having it looked at by a pro is worthwhile.
3) Buyers should always lowball
Many homebuyers make the mistake of assuming that if a seller isn’t happy with their offer, they’ll have the opportunity to increase it. Unfortunately, that’s not always the case—especially in scenarios where there are multiple offers at play.
The truth is, when sellers have options, they may move on quickly without giving you the chance to negotiate. Some may even be turned off if they believe your offer is insultingly low. The good news is, by working with an agent who has plenty of experience at the bargaining table, you can protect your interests while lowering your risk of rejection.
4) Renovating always leads to a high return
Some homeowners believe that investing in a full-scale remodel guarantees a great sale price when it comes time to sell. Not so. Sometimes going all-out isn’t worth the cost, unless you’re going to be staying in your home for a while and want to enjoy the changes you’re making.
Of course, some renovations can have a positive impact on your bottom line. At the moment, upgrades such as replacing your worn-out home siding or outdated kitchen cabinets have some of the highest returns. In other words: if a lucrative sale is part of your motivation for renovating, do your homework before diving in.
5) In a hot market, every home sells for a great price
We’ve all heard stories about multiple offers and out-of-control bidding wars. It’s enough to make many sellers believe all they have to do is plant a “for sale” sign and watch the bids roll in.
The truth is, if you’re home is in an in-demand location during a hot market, you’ll probably fare well. Having said that, strategic pricing, careful preparations, and skillful marketing can all boost the price you secure—even if you’re in a good position to start out with. Who doesn’t want their home sale to be as smooth and successful as possible?
Looking for an agent with local expertise? Whether you’re a buyer or a seller, get in touch to learn how we can help you avoid common missteps—and achieve a better result.
