Many of the real estate myths currently in circulation can be damaging to those who believe them. A house is likely the most expensive thing that any person will ever buy, but instead of taking that seriously, people are still obsessed with real estate myths.
There are a lot of things everybody seems to believe about real estate, including new agents. Some of these myths make very little sense, and can only serve to cost you money.
Don't believe the hype. Here are a few of these myths being debunked.
Myth: Small Markets Lack Opportunities
Many people see investing in suburban or rural real estate as a waste of time.
This is one of the most dangerous real estate myths, because it can keep you out of some of the most high-growth markets. 80% of residential growth in 2017 is expected to come from suburban markets.
You should remember this fact when making residential investments. Because as much as millennials like to rent their first apartment in the city, growth is still the domain of suburbs.
Small markets aren't perfect. It can be difficult to get the word out, which is why you need to intensify your focus on marketing.
Myth: You "Pass" or "Fail" an Inspection
It's amazing how many people don't understand the way real estate inspections work. Both home buyers and new agents think that inspections end with a property either passing or failing.
This is not the case. While there are building code laws that real estate agents need to take seriously, that's not what an inspection is for. Inspections are ways to take stock of the home's overall condition. It's not about passing or failing, it's about giving an honest statement on quality.
Myth: Listen to Property Gurus
Never listen to so-called property gurus. Most of the time, you're hearing from a snake oil salesman.
This is particularly true when somebody is selling you their "road map to success." Think about it two ways: first, is this person's road map to success just them selling you their road map to success Second: if this person did have the perfect idea of how to succeed in real estate, why would they give it away?
Property gurus revel in real estate myths. If you don't know what they're saying is false, they have all of the power in the world. But the reality of these gurus (and most self-declared business gurus) is that the emperor has no clothes. So don't believe the hype.
Myth: Real Estate Is a Predictable Market
Real estate is anything but predictable. This is one of those real estate myths that make us angry to hear, because it ends with people who could succeed in this industry quitting as soon as the going gets tough.
A few years before the financial crisis, people thought real estate was incredibly stable. Then the housing market crashed, and everybody said never to invest in it again. A few years later, the market was gradually growing again.
The point is this: change is the only constant in life. That includes real estate. As soon as you recognize the fact that things are going to change, you'll be a lot better off in your business career.
Myth: Trust the Zillow Zestimate
We all know that you shouldn't believe everything you read online. But there are certain websites that can be helpful. Zillow is great for people who want to buy a house or rent an apartment.
But one of the real estate myths surrounding it seems propagated by the company itself. That is the idea that Zillow's home pricing estimate is an accurate reflection of how much a home should cost.
The truth is, it's impossible to price a home without being involved in the process. If you want to know how much a home should cost, the best thing to do is talk to a real estate agent.
Myth: Real Estate Success Has a Timeline
Like the myth of real estate as a stable and predictable market, this is one of the most harmful real estate myths. People get their license and expect fast money.
But the reality is a lot more complicated. And the fact is: success looks different for different people. If you expect to see fast success or a steady progression, you'll be very disappointed in this industry.
Every industry, including real estate, has its ups-and-downs. Understanding this is the only way to prepare.
Myth: Multiple Offers Can Bring a Price Up
If you're a real estate agent getting multiple offers on a property, you'll love this one. You probably think that multiple offers can bring up the price of the house you're selling.
And they can, but they don't always. And when they do, it can be difficult to handle this successfully. The truth is, you need to navigate these offers to keep the other potential buyers in your good graces.
On top of that, people don't like to be manipulated. If anybody feels like they're being played, they'll go somewhere else for a house.
Myth: Overpricing Will Help You Avoid Underselling
This is one of the myths that are more likely to cost the clients. People think that real estate agents can avoid underselling on a property by overpricing their homes.
This is not how that works. If you overprice, you very likely won't have buyers come in to begin with.
This can make it nearly impossible to sell a house at the price you want. Ironically, you may end up having to under price your home to bring them in at all. Your best bet is being honest about the price of your house. Do this, and you can make the money you deserve.
Move Past the Real Estate Myths
Unless you're planning on selling every house with a complimentary rabbit's foot, you probably don't want myths to be a part of your sale strategy. We can help you sell houses using facts.
We're experts at home selling at every level. From construction to marketing, we're passionate about real estate.
Contact us if you want to leave the myths behind and succeed in this industry.