Buying or selling a home is an exciting process that you should go into with as much knowledge as possible. With so much information readily available, and people’s opinions it can become overwhelming very fast. Not everything you see or hear is true.
It is important to be certain that you have accurate information. Information that you can be absolutely positive about will give you a clear picture of the current real estate market, your agent’s responsibilities, the buying or selling process, financials, and more.
With competition for homes higher than they have ever been before, it is critical you have the right information to avoid expensive mistakes and remain competitive.
There are numerous real estate myths that should be cleared up because they can cause problems along the way. They can also give inaccurate information, sometimes negative, surrounding buying or selling a home.
Myth 1: Real Estate Agents are all the same
This is one of the most common real estate myths that you may come across. This is not the case, and you should know that in order to avoid problems and ensure you select the most qualified agent that is best equipped to represent your interests and advocate for you throughout the process. Agents have different experience levels, skill sets, and traits that separate them from one another. Do your research. Make sure you interview your agent and ask good questions.
Myth 2: You don’t need an agent as a home buyer
In the world of technology, it is not uncommon for home buyers that are eager to move forward to do searches online for their perfect dream home right from the comfort of their own couch. This has caused homebuyers to not only search and find their own home but to do so without getting a licensed real estate salesperson’s help. Homebuyers think this will save them money, but in all actuality, the seller pays for the buyer’s agent. A real estate agent can help you avoid common pitfalls that you may not see at first and end up saving you more money than you think. There is no cost to you as the buyer for having a buying agent.
Buying agents provide a large amount of expertise far beyond just helping you find your perfect home. They offer valuable negotiating skills based on the current market trends, help guide you through the contract process during purchasing, and provide you with advice.
Myth 3: Find your perfect home and then get your pre-approval
Buying a new home is very exciting! Finding your dream home is the most exciting part. So, naturally, as a home buyer, one of the first things you want to do is drive around through desired neighborhoods looking at homes and attending open houses. You should not spend your time on finding your desired home before getting pre-approved for a mortgage. Putting the pre-approval first will help the home buying process run much smoother and be less stressful.
The home buying process is usually very time-consuming, stressful, and exciting all at once. Waiting to get your pre-approval can disappoint you after finding that dream home of yours if for some reason you can not get pre-approved. Before you start seriously searching for a home, step 1 is pre-approval! This not only prepares you to make an offer when the time is right but it will also help you to surround your search within the price range that you qualify for and that you are comfortable with.
A pre-approval will put you in the perfect position in the event the home you do find that is perfect is receiving multiple offers. In this incredibly COMPETITIVE real estate market we are in today, having your pre-approval from a respectable lender will give you a significant, competitive edge in this type of scenario.
Myth 4- Save your money and sell your home yourself as a “for sale by owner”
This is a common myth to “save money” by eliminating the involvement of any real estate agents…DO NOT DO THIS!
There are few instances where homeowners find that this strategy pans out, but when looking at numbers, a typical FSBO that sells for $200,000 sold at a much higher average of $265,000 for agent-assisted home sales. While some people may see cost savings in not hiring a real estate broker, like not paying a broker commission, the savings are often wiped out by not getting the type of sale price that a broker could.
Compared to the average consumer, a professional real estate agent who works in the industry full time has much more experience, knowledge, access to many industry tools, and a much larger network of buyers and sellers. They are also much more experienced in the administrative and legal aspects of the transaction which can help avoid costly mistakes when dealing with contracts and other required documents and paperwork saving you unnecessary stress and headache. This is enough of a reason to hire an experienced real estate agent!
Myth 5 You should set your sale price at higher than what you expect to get
When you are trying to sell your home, one of the most important things is to price your home correctly. Some think that setting their sale price higher to allow for negotiation room is a good tactic. But, in doing this, especially in today’s competitive real estate market, can actually net you a lower price.
In today’s market, there are many home buyers and their real estate agents will skip right over listings of homes that are priced above local market value. Sometimes people who price their homes higher say they can always lower the price later if they don’t get any offers, but this can cause quite a few issues. Usually, buyers are suspicious of homes that have sat on the market for more than 3 weeks.
If your home is in a market like Western New York has been in, where for-sale homes often receive multiple offers, pricing the home slightly below what you expect to get can often drive up competition and net you multiple offers above the asking price. Be careful though, this strategy should not be used in a declining market because it may cause all of the offers to be at the asking price or lower. Also, do not grossly underprice the property, as it is a waste of buyers time.
Hopefully, this guide has debunked some of the common real estate myths you have heard and has helped clear up some questions you may have had. As you can see, it is important to approach buying or selling a home with as much accurate information as possible. This will help avoid any mistakes, some of which can be awfully costly. Accurate information will also ensure that you get the most favorable outcome you are looking for in this process while also remaining competitive. An experienced real estate agent can help make sure you have the information you need in this ever-changing market and that a good strategy is maintained.
Have any further questions? You can rely on our expert agents here at The Local Team at 716 Realty Group. We will clarify and make sure you have all of the correct information you need and guide you through the entire buying or selling process. To Schedule, an appointment with us just email us TheLocalTeam@716RealtyGroup or call 266-6691 and ask for us!