5 Common Myths About Real Estate

5 Common Myths About Real Estate

5 Common Myths About Real Estate
A PMI is a type of mortgage insurance used with conventional loans and can be arranged by your lender or private insurance companies. (Dreamstime)

Buying or selling a property is rarely a cakewalk; sometimes it can be a very confusing place to be in. And while you are in the process, as a buyer or a seller, you come across many so-called 'facts' about real estate. Not each one of them is true. It might help you immensely if you were able to say the real facts from myths. 

MakaanIQ debunks five most common myths about real estate that you might come across:

  • Set your home price higher than what you expect to get: As a seller, giving your property a price tag that¬†is higher than the prevailing market price may reduce your chances of getting a good deal for your property. Home buyers and agents usually do not consider homes that are priced beyond market value. Also, you might consider pulling down the price if you are not able¬†to attract offers in the first few¬†weeks of listing your property for sale. But you might put yourself in a spot as¬†buyers and agents often get¬†suspicious about properties¬†that have been on the market for long.
  • Experienced agents are always the best ones:¬†It is true that longevity and experience in the real estate business can be some¬†of the indicators of an¬†agent's competence, but¬†these¬†can certainly¬†not be the sole¬†indicators. Among the essential and imperative traits of a credible real estate advisor¬†are honesty, initiative, listening skills, availability and, most importantly, negotiation skills. Both buyers and sellers look for these qualities in their¬†advisors,¬†rather than the duration of their career.
  • If buyers don't like the exterior, they will never consider going inside:¬†It may be true in some case, especially if the buyer is in a hurry to spot just the right property. But in most¬†cases buyers are out to get properties that work best for them on multiple counts. If the rest of the features of the house are exceptionally good, they might like ignore the flaws in exteriors. For instance, even if the exterior is not very appealing, the property might have their desired amenities and features¬†like a¬†great¬†layout, specific number of bedrooms and bathrooms, a portico or¬†a backyard. In such cases, the buyer could consider making the purchase and revamping the exteriors later.
  • Going 'for sale by the owner' is the best option: You as a home buyer can choose the route you want to take for finding the right property for yourself. The choice is between¬†hiring¬†an advisor¬†who understands your requirements and takes you on a tour of several selected homes that are relevant. Alternatively,¬†you could access¬†online real estate portals,¬†go through newspaper listings, or speak to people you know are selling their properties, and then go out on your own.¬†
  • Agents say and do anything to close a deal:¬†It is a common belief that real¬†estate¬†advisors¬†say and do anything to finalise a sale, only to pocket¬†their commission. Though there might be a few aberrations, real estate advisors with a professional approach are ethical people who dutifully¬†toil to get you the best deal.¬†
Last Updated: Tue May 24 2016

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