There are all sorts of misconceptions in the real estate industry; some can be harmless and silly, but believing others can cause problems for a person buying or selling property. Being aware of these common real estate myths will help people make wiser choices throughout the year.
Buyers Should Start House Hunting by Checking Out Open Houses
This might seem like an easy way to start out when a person is still new to purchasing properties. However, it can be unpleasant when a person falls in love with a home and then realizes they cannot put in an offer before other people close on the house. It can be better to wait to look at houses until sellers are pre-approved for a mortgage, so they can make an offer as soon as possible.
Buyers Shouldn’t Start Shopping Until They Have a 20% Down Payment Saved Up
In the modern housing market, it is rare for buyers to actually have this much money saved up. Thanks to programs like FHA mortgages, it is possible to close on a house for as little as 3.5% down. The main thing lenders will care about is a buyers income, not their savings.
Buyers Will Be Fine With Strange Colors
Since paint is so easy to do, many sellers make the mistake of just shrugging their shoulders and saying “the next owner can deal with it” about unusual wall paint colors. However, one of the biggest things that turns off potential buyers is strange wall colors. A quick coat of beige or grey paint can make it far easier to sell a home. By making a home “move in ready,” sellers can better appeal to potential clients.
Sellers Don’t Need an Agent to Sell Their House
A lot of people think they can skip having to pay a commission to agents if they just stick a sign in their yard saying “for sale by owner.” The reality though is that homes sold without an agent close for significantly less than other comparable properties. An agent’s ability to alert other agents to the property and negotiate with buyers can make a huge difference.