10 Myths in The Real Estate World Busted!

 

Investing in the real estate market can be a huge decision that can prove to be very beneficial. It does however require a serious amount of long term commitment and very thorough market research in order to be successful.

 

There are plenty of myths floating around about the real estate industry, that are sometimes so engrained in people’s minds, they’re taken on as fact without much further research.

 

This article will run you through 10 myths in the real estate world that are totally untrue, so you can start investing in real estate knowing exactly what’s fact and what isn’t.

 

1. You should be a wealthy person to invest in real estate

 

It’s no news that new flats, houses or apartments can be pricey, but this doesn’t necessarily mean you must be rich in order to invest in property. Most banks and lenders are happy to give out home loans up to 80% of its value, meaning you’ll only have to pay 20% upfront and the rest as a mortgage, which can be flexibilized to meet your personal circumstances.

 

1. Investing in real estate is too risky

 

Many believe the house market is too unstable and investing in real estate could land them in hot water if there were to be market fluctuations. Peter Man a business writer at Brit Student and Next Coursework tells us- “the real estate market is actually surprisingly stable compared to other investment fields such as the stock market, and don’t even get me started with cryptocoin. Investing always involves risk, but the real estate world is definitely the least unpredictable of them all”.

 

1. All state agents are the same

 

This is a huge misconception, as each state agent is a world on their own. Each agent has different skills, different experience levels and different priorities, so it’s very important to find for one who’s interests align with yours so you can feel like your best interests are at the forefront.

 

1. State agents make a ton of money

 

While it is true that some state agents, after some time in the field spending long hours gaining experience, do become good earners, this isn’t necessarily the case for everyone. The commission a state agent makes for a sale is not a fixed 6% as some may think, as it’s a completely negotiable figure. Most of this will go towards hidden costs such as health insurance and car maintenance as well as advertising costs.

 

1. Overpricing your home to leave room for negotiation

 

Some are under the impression that if they overprice their home value by several thousands, they’ll have more room to negotiate and bring it down, giving the buyer the impression, they’re getting a good deal whilst still making a profit. Unfortunately, this strategy doesn’t work, and your overpriced home will sit on the market for months, as new buyers are very savvy and have all the information they need online, so they won’t bother checking out a house that is clearly overpriced!

 

1. New agents don’t have the know how

 

Whilst its true new agents might not have as much experience on the field, there’s no reason why they wouldn’t know what they’re doing. If anything, they may be able to offer a fresh pair of eyes and lots of energy!

 

1. You should renovate parts of your house before you sell

 

This is often a mistake, as renovating will cost you money you’ll have to add onto your listing, and the style of renovation might not be what a client wanted. Instead, adjust the price of the listing to reflect that the house may need renovation in some areas.

 

1. You shouldn’t invest if you’re young

 

Lorna Griffiths, lifestyle writer at 1 Day 2 write and Write my X tells us- “Investing when you’re young is a wise choice because you have so many more years in front of you to pay back your loans, there is no age tag for property investment”.

 

1. You don’t need a proper home inspection

 

Yes you do! And do it properly, with the help of a professional, they’ll help you spot flaws in the home that could cost a fortune to fix further down the line.

 

1. Only purchase when the market is favourable

 

As previously discussed, the market is unstable and investing is a risk, waiting around for the perfect moment might make you miss out on an amazing opportunity.

 

Michael Dehoyos is a writer at Thesis help. He assists companies in their marketing strategy concepts, and contributes to numerous sites and publications. He is also a business writer and editor at Dissertation writing service and Write my assignment.