THESE MYTHS CREATE REAL ESTATE DISAPPOINTMENT
Most people buy or sell a house once every decade or once in their life. This infrequency has lead to the perpetuation of several myths about real estate. These common misconceptions can lead to prolonged listings, unfair expectations, and undervalued homes.
ALL REAL ESTATE AGENTS ARE THE SAME
This is false. Besides having different personalities and work styles, real estate agents specialize in certain cities and neighborhoods. If you are looking for a house in Manhattan Beach, using a real estate agent who does most of their business in downtown Los Angelesprobably isn’t the best idea.
Having an intimate knowledge of the area is essential for a successful, profitable sale. Your real estate agent should be able to predict market trends allowing you to accurately list your home or bid on a property. If they don’t usually work in the area they’ll have a hard time accurately weighing home values and you’ll end up paying more.
PRICE YOUR HOME WITH ROOM FOR NEGOTIATION
This is also false. Overvaluing your home can leave it sitting on the market, not in the middle of a bid war. Most realtors won’t look at homes if it is over their client’s budgets, especially if they know it is overpriced. This can leave your house sitting on the market.
Homes that have been on the market for more than three weeks develop a negative stigma and often end up selling at prices far below the the actual value. The key to selling your home is listing it truthfully, at the market price.
GET PRE-APPROVED AFTER YOU FIND YOUR HOME
While sometimes being pre-approved won’t affect a sale, if there are multiple offers on the home being pre-approved can make your offer more appealing than others. You also run the risk of being denied a mortgage for your dream home after winning the bid. Besides being disheartening, it means you’ll need restart your search all over again.
OPEN HOUSES SELL HOUSES
Once again, this is false. Only 25% of open houses result in a sale. However, open houses can be lucrative for real estate agents as they meet unrepresented potential buyers. Holding an open house for brokers can be beneficial for homeowners as it will expose your home to their entire client base. If your real estate agent insists on having an open house every weekend, ask for their reasons.
“FOR SALE BY OWNER” WILL SAVE SELLERS MONEY
Unfortunately, this is also false. While you might not have to pay commission, you’re not as well versed in the market as an agent. You won’t know the how to most successfully market your home and won’t have access to listings. If you are able to get your home listed and find a buyer, you’ll struggle in negotiations especially if your buyer is using an agent and end up losing the money you wanted to save. Additionally, commission is often built into the listing price so you won’t lose any profit.
LOOKING FOR REAL ESTATE?
Purchasing a home or selling one, real estate is a huge investment so it’s important to have all the information. Real estate agents can help debunk all your real estate myths. Our team of expert realtors specializes in the South Bay and has been a leading agency since 1995. They know the ins and outs of the market to make selling or buying your home a breeze.