5 Common Real Estate Myths Debunked

Is this your first-ever involvement in real estate?
Read this article to steer clear of the widespread myths that can fog your judgment…

 

Real estate is one of those unlucky businesses that suffer from the curse of misinformation pretty often. 

Because there are apparently dozens of foolish myths about the real estate business going all over the place…

These myths, believed to be true, have been behind so many lousy property deals for people trying their luck in real estate without prior experience.

If you're a first-timer in real estate this article is for YOU to read. Why?

Because in this article we're going to bust the FIVE most common myths of real estate so that you can avoid them and think realistically while engaged in this business.

Read to (drop the ignorance and…) turn up your success prospects in real estate!

So, let's burst the first bubble…

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1) 'For Sale By Owner' Selling Saves Money

Yeah, that's a myth and a BIG one…

A survey in 2020 showed that the houses that were sold by their owner without taking any agent's services went for an average of $217,900.

Whereas (listen…), those that got sold with the help of an estate agent went for an average of $295,000.  

See the difference? 

You could lose thousands of dollars just believing that you can sell your house all alone.

A broker or agent will take their cut, BUT that's worth it. You cannot match their expertise, experience and skills when it comes to selling houses for top dollar.   

So, no you won't save by not hiring a property agent, in fact you'll lose…

2) Open Houses Sell Homes

Well, many sellers of real estate believe that having an open house can help them sell faster.

Drop it, that's not just true! 

Your real estate agent might also push you to have an open house on Sundays and you may think it's for your benefit, but it's most likely NOT the case… 

The thing is that agents see an opportunity to grab new clients through open houses that's why they insist on having them.

According to the National Association of Realtors, only 2% to 3% of houses sell through open houses.

Considering that, it's (perhaps) safe to say no to an open house approach.

3) A 20% Down Payment Is A Must

That’s another real estate urban legend!

Having enough cash at hand so you can put down 20% upfront is great (and ideal) but that's definitely not the norm.

The market is pretty well stocked with all the different kinds of programs that require a down payment of as little as only 3.5% of the total value, like the FHA mortgages.

Next…

4) Pre-Approval Is Secured After Spotting Your Perfect Home 

What a ludicrous myth that is anyway, but still most think it true.

So, getting pre-approved for a loan is not done after you've chosen your dream house, it's done before you even begin on your house hunting.

Actually, there are two reasons behind that…

First, you'd HATE to fall in love with a house that you later find to be out of your affordability, right?

And, secondly, in case of a bidding war those with a pre-approved loan always have an edge over the other bidders since they have the proof of their buying power.

5) Agents Can Only Show the Listings on Their Firm

False!

A real estate agent can not only show the listings on their company but they can also show any listing that is multiple listed.

For instance, an agent representing Howard Hanna, a US real estate company, can also show the properties listed with other companies like Keller Williams Realty, etc.

So, there goes our last myth, exposed and busted!

The Takeaway

Now, what do you take away from here?

See… No matter which business you're about to set foot in, if you let yourself get fooled by myths you'll be on the losing side for sure.

So, read, study, analyze and be well informed when you begin your journey in real estate.

The above five are not ALL the myths, they're just the top ones. So don't be laid back if they're not good for your area.

Because there could be other myths loitering about in your area. Be sure not to fall for them!