There are many myths associated with real estate and the whole buying and selling process. Some are close to the truth and some are so far off, it makes you wonder where they came from? Here are a few of the common myths debunked.
REAL ESTATE AGENTS CAN ONLY SHOW THEIR OWN COMPANY’S LISTINGS
We get asked this all of the time. A common misconception is that a real estate agent can only show their own listings or their company’s listings. False. Any licensed real estate agent who is a part of their local board and has access to the Multiple Listing Service (MLS) can show you any listed home that you’re interestted in seeing.
YOU’LL EARN BACK WHAT YOU SPEND ON RENOVATIONS OR MORE
Often, people think remodeling or making improvements to their home will yield a huge return when they go to sell. That’s not always the case. According to the 2015 Cost vs Value Report put together by Remodeling Magazine and the National Association of REALTORS®, the average cost of a bathroom remodel in this region is about $17,238 and only $10,153 of the cost is recouped or $58.9%. Let’s take a look at a minor kitchen remodel — the average job costs $19,648 and the return is only $13,793 or $70.2%
While some of these projects won’t return 100%, they still may be worthwhile. Homeowners can enjoy the benefits of the improvements for a couple of years before they sell and can still recoup some of the cost.
YOU HAVE TO PUT A 20% DOWN PAYMENT TO BUY YOUR HOME
We’ve all heard, “You have to put a 20% down payment in order to buy a house.” For many buyers, a 20% down payment may seem nearly impossible, especially for first time homebuyers. Many lenders now offer alternative loan programs specific to buyers who don’t want to put down 20%. All of these programs have qualifications, requirements, and restrictions so make sure to contact a mortgage banker or mortgage originator for full details.
SET YOUR HOME PRICE HIGHER THAN WHAT YOU EXPECT TO GET
There are many risks involved in pricing your home too high. Many sellers think that if they set a higher asking price, then they have more room to negotiate. Not always true. If you’re asking too much for your home, your home can sit on the market longer. You may have to reduce the price, maybe more than once. The longer the listing sits on the market, the more potential buyers and other agents might question what’s wrong with it.
Before you set a price, ask your real estate agent for a competitive market analysis. The analysis will compare other similar homes on the market and help you determine what your house can sell for.