You’ve probably heard a lot of different things about the real estate market, but how do you know what’s true and what’s not? Sometimes it can be hard to tell. But we’re going to change all that!
The current real estate market is highly competitive, so there’s no time for confusion. That’s why we’re busting some of the most common real estate myths out there. It’s difficult enough to buy or sell a house without knowing what to believe vs. what’s just bologna. So, get ready: here are 10 real estate myths of 2022, debunked!
Real Estate Myth 01: You Shouldn’t Bother Getting Pre-Approved
The Truth: Actually it’s a smart thing to do! Getting pre-approved not only helps you know how much house you can afford, but also lets the sellers know you’re serious and are not just ready and willing to buy, but capable of it! Oh and to bust two myths with one debunk, getting pre-approved is not going to blow your credit score!
Real Estate Myth 02: Schools Don’t Matter if You Don’t Have Kids
The Truth: Even if you don’t have children, buying a house in a good school district means your house will have a greater resale value. So, unless you are buying your “forever home”, schools should definitely be considered as they are typically a high priority on many a buyer’s list of must-haves.
Real Estate Myth 03: Real Estate Agents Only Show Houses Listed with Their Company
The Truth: Certified Realtors follow a strict code of ethics which includes showing you every house that meets your criteria regardless of the company listing it. Do you want to see it? You got it!
Real Estate Myth 04: When Making an Offer on a House, Go Low
The Truth: This is risky in today’s competitive market. If you make a lowball offer and bank on receiving a counteroffer, you may be waiting a very long time! In fact, you may never get another chance, especially if there are multiple offers on the house that are almost at or above the asking price. Besides, offering a low price can be considered insulting and disrespectful to the seller, which isn’t exactly a great way to start a friendly transaction!
Real Estate Myth 05: If You’re Selling, Price Your House High
The Truth: Bad idea! You might want wiggle room for negotiations, but the truth is overpriced houses attract fewer buyers and receive fewer offers than houses that are more reasonably and competitively priced. Unless you have all the time in the world or don’t care if potential home buyers pass you right by, make sure your price tag is fair.
Real Estate Myth 06: You Make More Money if You Renovate Before You Sell
The Truth: Not necessarily! You need to weigh the cost of home improvements with their return on investment to decide if the fixes are worth making or a waste of money and time. Often, making small repairs or inexpensive updates, decluttering, and staging is all that is needed to get top dollar.
Real Estate Myth 07: If a Home Looks Great, There’s No Need for an Inspection
The Truth: No matter how new or nice a house appears, there could always be potential problems lurking, and you don’t want to be stuck with them once the keys are in your hands. An inspection can reveal issues that need to be addressed, and rather than that be your problem as a new homeowner, you can request the issues be fixed before you take possession, or the purchase price be lowered to reflect the cost of the fixes. No inspection, no knowing what kind of problems (and costs) are in store!
Real Estate Myth 08: Buying is Better than Renting
The Truth: This depends on a number of factors such as your financial situation, stage in life, how long you plan on living in the home, and your future plans, just to name a few. So, before you just chalk up renting as a waste of money, it’s smart to crunch some numbers, compare what your costs will be buying vs. renting, and determine if the timing is right for you to rent or put down roots. The answer may surprise you!
Real Estate Myth 09: Real Estate Agents Get Paid Big Money
The Truth: Real estate agents do not earn a salary but work on commission, and even then, must split that commission with the brokerage firm that employs them. That commission must also cover the added time and expenses the agent spends driving around, showing houses, hosting open houses, researching, troubleshooting, marketing, and more. Lastly, a real estate agent’s commission is not set in stone — it’s negotiable.
Real Estate Myth 10: There is No Advantage to Having a Real Estate Agent
The Truth: In actuality, real estate agents can provide you with invaluable knowledge of the market conditions as well as access to homes for sale you wouldn’t have known about otherwise. They can also use their expertise to negotiate the best price possible on your behalf and can even help you through the paperwork and complicated process of buying or selling a home. Sure, you can go it alone, but believe us, it’s a whole lot easier and works out a whole lot better if you have a Realtor in your corner!
There are quite a few real estate myths out there, but whatever you’ve heard, the BlueWest team is here to clear up what’s true and what’s not. For real, honest answers to any of your real estate questions, get in touch with our team today. We are happy to help you understand the West Michigan market so you can make informed decisions based on facts, not myths. Visit us online or give us a call, and we’ll give it to you straight!