If you are looking to buy or sell a home you have probably received real estate advice from friends, family, and coworkers who think they know best. As well-meaning as they are, those close to you may have heard some frightening myths about the real estate industry. Don’t worry, we’re here to debunk those myths so that you and those close to you have a better understanding of real estate.
If you have found the home for you and you don’t have the preapproval letter accessible, then you may be at a disadvantage when making a successful offer. The real estate market is competitive, and most offers will not be approved without a loan approval letter. Be sure to get preapproval before searching for the perfect home. Then you avoid the potential nightmare of losing your dream home.
A home does not pass or fail an inspection. Rather an inspection is completed so that you can understand the condition of the home. The inspector will provide a report of the key systems of the home and the life expectancy of big tickets items like the roof. You wouldn’t want to purchase a dream home and then have spooky electrical issues. If you want to learn more about inspections read our blog about the 5 Questions You Must Ask Your Home Inspector.
The price of a home is affected by the market conditions, the property’s location, and it’s size. The listing agent strongly suggests a price based on all of these factors. Then the seller may negotiate that price, but the seller is not the one who says, “My home is worth x amount and I’m going to price it as such.” Most prices are negotiable; so don’t be scared away by the initial price.
Holding an open house shortly after listing creates attention for the home. An agent can learn valuable information on what buyers’ opinions are of the home at an open house. Many tech-savvy buyers use the Internet to search for properties first, to filter out the haunted houses. So when they visit an open house and they’re pre-approved, they may be ready to write an offer.
“In reality, the best offer is the one with the highest probability of closing,” said Allen Schild, real estate broker for @Properties in Chicago. Even if you have a high offer, it could come with ghoulish contingencies or a deadly long closing period. Consider different factors, like if the buyer is offering cash before you make your final decision.
Don’t believe everything you hear about the real estate industry without doing your own research. We hope you enjoyed learning about these frightening real estate myths. You may find that there are myths out there that still need to be debunked. Let us know if there are any other myths that need to be brought to light by leaving a comment on our Facebook and Instagram posts promoting the blog!