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Real Estate Myths cleared up…
Myth – Buying a home while there is a buying frenzy and bidding wars is a bad time to buy. Wait until the market calms down.
Truth – Buying in a “seller’s market” almost ensures prices will continue to climb at least for a while. Once the market calms down annual property appreciation also slows down.
Myth – Single family homes appreciate faster than condos.
Truth – They both appreciate at around the same rate, they simply don’t always appreciate at the same time. Single family homes typically appreciate first becoming less affordable to many. Then buyers look to condos because they are cheaper, causing condo prices to escalate in a “catch-up” fashion.
Myth – Large real estate firms are better at finding buyers.
Truth – No matter who lists a property on MLS, tens of thousands of agents and brokers are there and motivated to help find a buyer.
Myth – An offer to buy your property directly without marketing it on MLS is better for you because it saves you the cost of commissions and effort.
Truth – No. Professional investors don’t want the competition. The highest gross and net sale price is obtained by allowing all potentially interested buyers to see and bid on the home. The combination of MLS and national websites like Zillow are unbeatable with regards to getting maximum exposure to the buying public and full price for a property.
Myth – A property selling for over the asking price is a great accomplishment.
Truth – Not necessarily. Intentionally advertising a home at too low of a price, expecting it to sell for more than the asking price, is a common and successful marketing ploy to attract buyers. A real accomplishment is when a home sells for more than comparable, local homes are selling for.
Myth – If a property sells in only a few days it was marketed well.
Truth – If a home sells that quickly it was not viewed by all potential buyers . Many buyers were likely unavailable to view the home the first few days it was on the market. Some buyers work weekends or odd hours. Ten days (+/-) is a reasonable time to allow all potential buyers to view the home. Selling a home too quickly is not only unfair to most buyers but can result in a lower selling price.
Myth – If you spend money fixing up your home it will be worth more.
Truth – Not all home improvements appreciate a home’s value as much or more than the improvement costs. Aesthetic improvements typically increase a property’s saleable value more than practical improvements. That’s the world we live in. If you’re planning on staying in the home do the improvements that please you and if selling, focus on beauty.
Myth – Single family homes are the best investment.
Truth – Single family homes are often the most liquid but in a long-term hold position seldom yield the monthly income of multi-unit properties. Over the long haul they all go up about the same percent.
Myth – The exact color(s) a home is painted doesn’t affect its saleable value.
Truth – The exact color affects perceived beauty and therefore value. It is why black and silver cars sell for more than green and brown ones. Try to buy someone else’s makeup for them and see where that gets you.
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