7 Real Estate Myths
Truth or fact?
Wondering about the ins and outs of real estate, but don’t know where to start? It doesn’t take a tenured agent to recognize a few well-known real estate myths and understand why they are false.
1) MYTH: Looking at homes is the best place to start.
Simply getting started can be one of the hardest parts of real estate, and while it may seem easiest to just visit open houses and drive through neighborhoods that look inviting, this really isn’t the best place to start. The first step should be getting a preapproval letter from the lender you want to work with, which will prepare you to make an offer when the time is right and search within the price range that you qualify for.
2) MYTH: Buying a new home means fewer repairs.
This may be true when compared with purchasing a fixer-upper or older home, but there can be hidden expenses of building a new home. And quick builds designed to maximize profits can result in homes with lower-quality craftsmanship and important construction details that have been overlooked. Problems like this can be avoided altogether by hiring a professional home inspector to survey the new home construction to prevent future problems before they even occur.
3) MYTH: Buying is always a better financial deal than renting.
Buying a home can be a good investment – but only if you stay in it long enough to see a profit. To find out if renting will be cheaper than buying a home in the long run, do the math to figure out what the total price of a purchased home will cost you during the time you plan on owning it. Costs such as insurance, interest, maintenance, and closing fees should be considered. If you plan to stay in a home for just a few years, it could cost more to buy than rent.
4) MYTH: Always redecorate in neutral tones.
While it is typically a good idea to have your home painted in a color that reflects neutral tones, it isn’t always necessary. Appealing to a wide range of buyers obviously increases the odds of selling, having walls painted in bold colors can play to architectural features or help the home be more memorable to potential buyers.
5) MYTH: You should remodel before you sell.
The return rate averages just 64% of the remodeling investment on your home, so if you are concerned about remodeling the kitchen or bathrooms to sell your home, consider the costs. Many buyers look forward to customizing these spaces themselves anyways, so consider this before remodeling
6) MYTH: Winter is a bad time to sell.
- The winter is considered the off-season for real estate, but the reduction in listings makes less competition within the market for well-positioned properties. Plus, in the Southern states, the winter experiences a significant peak as buyers look to move somewhere warmer.
7) MYTH: Open houses sell houses.
Open houses are a point of debate, with some believing they are a traditional way to sell homes, the statistics point otherwise. According to the National Association of Realtors, only 2% of homes are sold because of an open house. However, today’s home buyers are more tech-savvy, and likely to browse online and do research before showing up on the doorstep of an open house, so hosting an open house does have its benefits in this day and age, but in reality, may be more work than it’s worth.
Now that you’ve debunked seven common real estate myths, get your house on the market today! The Galaxy Lending Group provides secure home loans, contact us to begin the application process today.