Fact Or Fiction – 5 Truths Behind Conventional Wisdom In Real Estate

Real estate is an ever changing market, but it’s also an ever changing business.  With new technology houses are being bought and sold in very different ways than 20, 10 or even 5 years ago.  The best tips and techniques for selling a home change season to season.  Popular misconceptions about real estate make many people hesitant to get into the home-buying or -selling game. If you’re considering buying or selling a home, don’t let the following conventional wisdom stop you. There’s not as much truth to it as you think

  1. Technology has made real estate agents obsolete.  This has never been more false.  Unless you are a marketing master with tons of tech experience and a background in photography plus a network reach of at least 1,000 you will not sell your house for more money than an agent can get you.  On the flip side, if you are buying a home you may not have all the negotiation skills to get the best deal on the perfect home for you.  Technology has made things easier, but nothing can replace the benefit of an agent who embraces and utilizes this technology for your advantage.
  2. A house is only worth what it’s been appraised for.  While an appraisal will give you a good starting point, your home is only worth what someone is willing to pay you for it.  Your mortgage or what you think it’s worth doesn’t factor in to this decision at all.  A homeowner or would-be seller can only rely on a recent appraisal for a bank refinance.  It’s helpful to understand that a home’s appraised value typically comes in below the market value. Factors such as views, finishes, fixtures or neighborhood specifications can affect your home’s appraisal.
  3. Spring is the best time to sell, which makes it the best time to buy.  There are many theories as to why this used to be the case.  Some people feel that it’s a better time because before the internet buyers had to hit the pavement to find a home and no one wants to do that in bad weather.  Another theory is that this is the best time because buyers want to move in the summer when the school season is out.  Today there are many people buying homes that don’t have kids or are affected by the school year.  The best time to sell is when inventory is low, like now in the winter months.  The best time to buy is when rates are low, like now before they start to raise again.
  4. Buyer’s need 20% down to buy a home.  This is the biggest misconception for millennials, who are often burdened with huge student loans but still want to be homeowners.  After the credit and housing crisis, it became very difficult to get a mortgage. Lenders were strict, and financing killed deal after deal.  Today it is possible to get a loan with as little as 3% down.  But while lending standards have loosened, it’s no slam dunk today. You must have great credit, verifiable income and assets to back you up. But you don’t necessarily need a 20-percent down payment.  Talk to a mortgage lender to find out what you will need.  If you’re selling, be sure to talk to your agent about the different types approvals for buyers to make sure your deal doesn’t break down before closing.
  5. Open Houses are obsolete. Many people think that since people search online, there is no need to hold an open house anymore.  There are very few instances that someone is going to buy the house after just seeing photos online.  They want to go and see and touch to make sure it is perfect for them.  When you host an open house, you are literally opening the door to let buyers come through and fall in love with your home. Without an open house, they might never set foot in the door.  If you’re buying, an open house present the perfect opportunity for you to explore the home in depth and talk to an agent who can help you with all your questions and needs.

It’s hard to think that what’s always worked before will not work again, but in an ever changing industry, such as real estate, you need to be at the fore-front on thinking and technology to accomplish your goals.  To discuss the best options for your family and situation, call Helen today at 847.967.0022 or email [email protected].