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Top 9 real estate myths that confuse people

A time comes in everyone life when he thinks of buying or selling a house. This opportunity may come once in a decade or in a lifetime and we tend to think that real estate is simply an exchange of money and property. But everything we believe we know about real estate are myths and can hurt your chances of finding the right home or right price.

Though technology has made buying and selling home simpler, the core aspects of the business are still the same.

The Internet has made information available to consumers, but many times it’s misleading and inaccurate. It is advised to check the credibility of the content you read online and take everything with a pinch of salt.

Believing everything that you read online when it comes to buying and selling a home, can turn out to be a myth which might leave you in a lurch. Following are the 9 common myths you should know and avoid.

Set the price higher.

Setting a price above the market value can result in buyers and real estate agents to steer clear of properties that don’t fit their budget. You can lower the price once you think it is not getting attention, but it will be late by that time. Buyers are highly suspicious of properties that have been sitting in the market for a long time. Smart property sellers some time set competitive pricing to get multiple offers and generate competition, spinning the highest bidder who will give more than the asking price. However, one should avoid this in a down market.

Avoid real estate agents to get your own deal.

This is a total plaster! If you list your property with a real estate agent, the sales & service commission are going to come from the set rates. And if the property seller doesn’t have an agent the buyer will certainly have an agent, who will get a commission on the property benefiting his client. Therefore, it is always advisable to get an agent to land for the best deal.

You can get a better deal selling your property yourself.

People manage to sell their property successfully, but they need the expertise to get the property listed online, advertise to a prospect buyer and negotiate the terms with a contract. Also, he/she has to deal with the issues upon inspection or application phases for a loan. It is not beyond for an owner to do all the necessary; however, he/she might fail to negotiate correctly by spending his energies causing too much annoyance, ending in spreading thin and giving in.

Real estate value always goes up.     

Real estate market has experienced a time of appreciating value in recent years. Following which, there was a sharp decline during the economic downturn and now it is on the growing path again. Recession in the past should remind everyone that the price can also be affected acutely. Everybody expects the market to climb, but no one is thinking of when the correction is going to come.

You should renovate before you can sell.  

Remodelling your kitchen and bath interiors can backfire on you; in case the buyer doesn’t share your taste. Buyers might not like to renovate the interiors back again if it doesn’t impress them, but they might still want to adjust the house price accordingly.

You will get your investment back with your innovations.

You can fix the air-conditioning, the roof, paintwork, faulty pipelines or componentry if you are going to make a sell quickly, but you most likely will want to recover your burned pocket and end up in a lesser deal. According to a 2015 report, you are going to recover the net value of your property renovation cost if you only change the front door period. It’s not worth it if you renovate an empty property which only waits for months and loses all advantage.

If you have your property listed with multiple agents it will show online.

Real estate must allow the property to show up online, but you should always verify that your property is easily found online.

Property fairs sell houses.

Houses rarely sell in property fairs or sales or expos. People generally don’t buy or sell during these events; agents organize these events because it gives them leads which are additional. As a real estate agent, if you choose not to participate in any property fair, it won’t hurt your sales by any margin.

Your agent will always take care of your interest.

Yes, he will or maybe not. In India majority of the agents are brokers who don’t have a duty to either the buyer or the seller. Before you start with an agent, ask for the options and do some research yourself

Dipankar Sanyal

A Trainer, Life Coach, Mentor, Psychotherapist, and a Corporate Communication Specialist with varied industry experience of about 30 years. He has held different top-level positions in the industry and HRD, including communication. His interests are in Live Development Skills, Psychology, Training, Organization Development, HRD, Travel & Tourism, Real Estate, Technology, Economics, Education, Philosophy, and Religion.

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