Nowadays, most people believe in myths, real estate ones to be exact. This makes them hesitate on either purchasing a real estate property or becoming a licensed real estate broker. But here’s the thing, why should you let myths keep you from obtaining your goals? Why allow these make-believe statements or hearsays dictate what you’re supposed to be doing? If you wish to purchase a condominium, then why shift your focus and decisions?
Below is a list of 5 real estate myths you shouldn’t believe at all. The first three myths apply to realtors while the last two myths apply to investors and home buyers.
Myth #1: Spring Is the Best Time to Put A Home on the Market
If you have just started out in real estate, you might have already heard about the hearsays that you shouldn’t put up and list homes during fall or winter. A lot of people, agents, and companies get brainwashed by this myth that the real estate industry often gets flooded as soon as spring comes. As a result, there is a much larger competition as the supply of real estate properties rise in a span of one to two months, which is definitely a disadvantage. If your marketing skills aren’t as effective and evident enough, then you’ll pretty much suffer during the spring if you let your thoughts cave into this myth and not take advantage of other seasons.
Myth #2: You Need Lots of Money to Start
False. Although yes, you need money, but that’s not all to it. You don’t need a lot of money when starting out in the real estate industry. The industry simply requires adequate education, patience, enough preparation, and lots of determination to reach your end goal. These are only some of the many ways you can kickstart your real estate journey. However, it’s always up to you whether or not you’re willing to go through a series of challenges, trials, and errors before reaching the peak.
In the same way, myths usually state that only rich people can afford a real estate property, which is obviously not true. Actually, this myth is far from the truth of real estate property purchases and home buying. Today, most people who purchase real estate properties apply for home loans to finance their decision and expenses, since home loans are believed to pay for almost 80% of the entire property’s value. That leaves homebuyers with only 20% of the total cost to pay from their savings.
Myth #3: Put Up High Prices For Negotiation’s Sake
This is a prevalent myth – that you need to price your lots really high to give yourself and your buyers some room for negotiation. But here’s the thing: if you price your properties too high, interested buyers might be put-off. Nowadays, most buyers are well-aware of what’s available on the market, which can make you lose clients. Since your pricing appears too high, most buyers are more likely to opt for agents and other businesses that offer lower price points than you do. Yes, there certainly is room for negotiation, but keep in mind that you need to price your property adequately to entice and bring buyers closer to your offers.
Myth #4: Only Fully-Developed Properties Are Worth The Investment
It has been a common misconception that only properties in fully-developed areas are worth the investment. This is actually false. It might actually be the wrong decision to narrow your choices down. However, you need to focus only on properties located in central business districts as they can get costly. After all, they are placed at the very heart of business areas, so prices must be really at their peak, say condos for sale in Pico de Loro.
In turn, it’s best if you search for areas with low price points and minimal development. Doing such, as you can witness its future growth. These areas might not be your ideal neighborhood due to pricing. Still, investors or homebuyers can appreciate this highly in the future. In fact, you could even receive higher returns on your investment as the property or community grows.
Myth #5: You Shouldn’t Be Investing In Real Estate While You’re Young
A lot of people view real estate investments as something to be undertaken or done by adults. While this is not entirely wrong, it could also be true. In fact, investing in a real estate property while you’re young could actually be of great advantage; you’ll have more “working years” ahead of you to pay off your loans (home loan, to be more specific). In some cases, most financial authorities or institutions offer lower rates for young people, which is why investing in a real estate property while you’re young can provide you with significant gains in the future.
Wrapping Up (Real Estate Myths)
There are a lot more real estate myths lurking around, in communities, and people’s minds. What you have to keep in mind is that these myths could only lead realtors to lose clients and investors or homebuyers to purchase the wrong property. As much as possible, try to consult professionals and lean more onto your instincts and decisions rather than keeping your eyes or focus locked onto myths that are never really true. Investing in real estate is no joke; that is why you have to be very careful and precise with or without the knowledge of any myths. Now over to you.