5 Common Real Estate Myths

If you let it slip that you are planning to buy or sell a house, suddenly everyone you know is a real estate expert. People love to share their own experiences, good or bad, in the real estate market. While it never hurts to get a feel for what other people have been through when searching for or selling a home, it is important to take these stories with a grain of salt.  Most people only buy or sell one or two homes in their lifetime. These snapshot experiences fail to capture the landscape of the real estate market. What worked for one person, one time, may not work for you at this time, in this market. Here are 5 common real estate myths to watch out for when buying or selling a home:

Real Estate Myths: Open Houses Sell Houses

Sometimes, yes.  But most of the time, no.  In fact, only 2% of home sales come from an open house.  It is certainly possible that a prospective buyer will fall in love with your home during an open house–that 2% comes from somewhere.  But an open house may not be worth the time and effort. If you market your house well, serious, interested buyers will schedule a private showing.

Myth: Price Your Home High To Leave Room for Negotiations

While it might be tempting to list your house at a price higher than the expected selling price, leaving some ”wiggle room” room does not always work.  With so much information available online about real estate for sale, buyers these days are very well-educated. They know what an appropriate price is and may not even bother to look at a house that is overpriced.  Pricing your home realistically will bring in more potential buyers.

Myth: Skip the Real Estate Agent. You Can Save Money By Selling Your Home Yourself

Many sellers are attracted to the idea of a do-it-yourself, “For Sale By Owner” home sale because of the money they save by not paying the real estate agent.  But it is important to remember that when you pay a real estate agent, you are buying a valuable service. Real estate agents know how to accurately price your home, market it, negotiate the best price, and deal with all the logistics and paperwork that come with a home sale.  Inexperienced homeowners may not be able to navigate the market, leaving their home to languish for months without selling. And that doesn’t save any money at all.

Myth: I Can Recoup My Remodeling Costs When I Sell My Home

You may recoup some of the remodeling costs, but it is rare that the selling price will dramatically increase as a result of home improvements.  A good rule of thumb is that you should not expect to recoup more than 60% of the cost of the project. If you want to update your home while you live there and enjoy the investment, that’s one thing.  But investing a lot of money in your home right before selling is not the best use of your money.

Myth: Buyers Should Wait To Get Pre-Approved for a Mortgage

Waiting until you have an offer accepted to look into mortgage approval is a big mistake.  Without pre-approval, buyers cannot be certain of their home-buying budget. Many sellers will not negotiate with a buyer who is not pre-approved.  What a disappointment to make an offer on your dream home and have it accepted, only to be declined by the bank. A pre-approval letter lets you search for a home with confidence.

If you plan to buy or sell a home in the Lancaster, PA, area, reach out to the Jeremy Ganse Home Selling Team.  Our Lancaster PA real estate agents would love to help you.