12 Real Estate Myths Exposed
A real estate investment, in general, is a long-term and important commitment for most people. Taking this step requires good help and support and most of all- knowledge.
While real estate agents can help make the process of finding the match for our dreams easier, there are certain aspects that are important for us to know before we give the key to our options to them.
Almost all the information you might need to know about real estate is available on the internet. But this information alone cannot get you to the best place because a lot of these are not completely true or worthy of basing a decision on.
So, here we are going to burst 12 real estate myths that will increase your chances of finding the right property.
1-You need a lot of extra money to invest in real estate
Real estate investments even today feel like a rich man’s business while in reality it actually need not be. Buying a property needs proper planning rather than tons of money.
Home loans are the preferred means for acquiring property today which handles almost 80% of the overall value of the property.
EMI options with time period flexibility are also available along with certain government schemes. All these in combination help real estate investments easier and affordable than ever before.
2-Real estate is a risky ground to invest
Fluctuation of property value is definitely an important factor to take into account while making a real estate investment decision.
But when compared to other forms of investments such as stocks or bonds, real estate still holds a considerably stable ground below it.
3-A 20% deposit amount is necessary for first time home buyers
A common misconception about the initial deposit for first time home buyers is that it needs to be 20%.
But this necessarily depends on the program or scheme which you will be choosing wherein there are options even as low as 5% available.
There are various other programs that offer alternates, lower rates etc, for the initial payment which can be considered.
4-Location alone matters
Of course, location plays a strategic role in determining the value of a property. Distance from educational centers, health centers, entertainment areas, accessibility to transportation etc is determined by the location of your property.
But shifting all the value to location alone is wrong. The time of your investments and market situations then needs to be considered to determine the optimized list of choices to buy from.
5-Buying in a fully developed area is the best choice
If you want to invest a huge amount of money in an area only because it is fully developed, then this isn’t the right investment decision.
Properties in these areas are definitely expensive and in fact, run at their peak rates in most cases. It also shows low possibilities of growth.
Investments are best made in upcoming areas where properties are still at reasonable prices and the market shows a promising growth in the future due to developments.
6-It is better to price a home at a higher rate than actual
It is generally assumed it is good for a seller to protect their actual selling prices by placing inflated prices on the table first.
But this is many cases leads to less interested people who even want to visit the property which means there is no room for negotiation.
7-It is easy to negotiate a property that has been in the market for long
This cannot be true because usually, properties sit in the market for long when there are hardly any options for negotiations.
Sometimes this could also be because of the condition, location or other factors that affect the value of the property. If the seller has placed unrealistic offer chances are there they are not willing to negotiate.
8-Real estate investments are easy income
Sure it is easy to sit at home and have monthly rent posted to your account. But truth be told managing a property is quite difficult.
From maintenance to taking care of any problems, collecting rent, managing inspections and getting new tenants during the transferring phase is all a good amount of work you must be prepared for.
9-You can get higher prices by eliminating agents
As a seller, you always have the option to do all the groundwork yourself in selling your property. But if you choose this option to save up the commission money then chances are that you might end up losing that money someplace else, like having to settle for a lower value.
While it is not impossible to sell without agents, they do play an important role in getting both the buyer and the seller to an optimized price point.
10-Eliminating an agent will help you buy at better prices
Sellers usually deal with real estate agents to handle better deals. So, it is often easier to use real estate agents to look for a property of your choice rather than do it all by yourself.
The reason here is you will get to see more options than you will get a hold of individually and also be able to negotiate better.
Also, property prices usually include agent commission in total so by eliminating an agent from your side you are only giving all of that share to your seller’s agent and not getting to save that money.
11-Internet stats and demographics are enough to understand property value
Online information sure helps you have an upper hand while negotiating and evaluating the property.
But many times people fall bait to wrong information and lose out on great offers and amazing properties.
Having an agent can help you get the true picture of the market and make better investment decisions.
12-It is always a good idea to renovate before you sell to get better prices
Your property`s appeal is sure important for determining its value. But many a times renovations engage more money than they can make from a sale which means you are technically not increasing the property value.
There are very few remodeling that can actually pay off but again only in rare cases which means unless you plan to personally cherish a new kitchen don’t bother to create one.
The Internet can help acquire knowledge about properties before taking the leap. But relying on it completely may not be the right way to go.
So, search Miami fl real estate to not only know about the market but also to know about the people who might get you closer to the best properties at the best prices.