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September 30, 2021

10 Things You Need to Know Before Entering the Real Estate Market

In the age of digital media, there is so much information available about real estate agents, the best time to sell your house, the do’s and don'ts of real estate that it can become overwhelming. Not to mention that all of this information may not be coming from a reliable source. As a seller or buyer in the competitive market, it’s important to do your homework and get information from a source you trust to avoid pitfalls during your real estate journey.

Join us as we debunk the top 10 real estate myths which we’ve encountered over the course of our real estate journey.

Myth #1: Great Houses can Sell Themselves

While it may seem that houses are currently flying off the market, especially given the current Covid-19 induced home buying frenzy, the fact is that a house cannot sell itself, no matter how great it is. No matter how well-maintained the house is or how gorgeous the upgrades are, the only way to sell the house and show off its true potential is through effective marketing.

High resolution photos, videos and 3D virtual tours are just some of the ways to show off your home's greatest assets. And with more and more buyers scoring the web to find their next home virtually, a picture really is worth a thousand words.

This is not to say that having a well-maintained and upgraded home is not important, but rather an effective marketing campaign for the home will help show it in its best light and reap the highest investment rewards.

Myth #2: Marketing Expenses aren’t the Agent’s Responsibility

Remember those high resolution pictures, videos and 3D virtual tours which will help you sell your home? Well, those are costly and time consuming to produce. Luckily for you, that’s an expense which is 100% footed by your real estate agent.

Next time you consider selling the house yourself without the help of a real estate agent, keep in mind the hidden benefits which you’ll be missing out on, like the free marketing!

Myth #3: The Longer the Marketing time the Better the Offers

We often think that the longer we wait, the better the offer we will get. When that first offer rolls in, our first thought is often, “Wow, if we got such a great offer already, imagine how much better the offer will be if we wait a little longer.”

Unfortunately, that is most often not the case, and in fact offers may either decrease or become altogether non-existent the longer you wait. In the current hot real estate market, people may begin to ask questions about why the house hasn’t sold yet. In this case, waiting longer will not necessarily lead to a better offer.

Myth #4: A Quick Offer Means the Property is Priced too Low

In the current booming real estate market, houses are being snatched up pretty soon after being listed. If your house gets a quick offer that does not mean it was priced too low, rather it means that it was priced at a fair market value, making it attractive to prospective buyers.

Also keep in mind that with the current home shortage in Canada, it is likely that prospective buyers are up to speed on all the latest homes available. Perhaps it's best to take it as a compliment; your home was so attractive and the price was perfect, making it a dream home for another family.

Myth #5: Overpricing a home results in Higher Prices

Normally, overpricing may have been helpful to give you more leeway in your negotiations. However, as we mentioned earlier, the market right now is booming, and there is a short supply of houses available. Buyers are doing their research, and overpriced homes may turn them away from even considering your property. Or worse yet, your property won’t even make the cut for their criteria, if it is beyond their budget.

While you can price your home slightly higher, right now it’s better to price your home at a fair market value and allow for the opportunity to have multiple offers instead of just one, or worse none.

Myth #6: The best time to sell a house during the summer

This myth definitely begs the question, is there really a best time to sell a home? In fact, according to recent reports, there is actually no right time to sell your home. While the spring and summer periods tend to be a more popular time to sell homes, they are by no means the only seasons in which one can sell their home. The influx of homes in these seasons actually provide buyers with more choices and options which could result in a lower price for your home.

Ask your agent about potential benefits and drawbacks of different selling times and make an informed decision. 

Myth #7; You don’t need to get pre-approved for a mortgage until after you’ve found the perfect home.

Getting pre-approved for a mortgage is the smart way to go to ensure that you are ready to buy your perfect home. You never know when you’ll find that perfect property and you certainly don’t want a mortgage pre-approval to be the thing that stops you from purchasing your dream home.

Myth #8: Open Houses Sell Houses

There is a common misconception that open houses are a sure fire way of selling your home. However, a recent poll indicated that only 2% of homes are sold through open houses. In fact weekend open houses tend to bring in more nosy neighbours, and curious outsiders as opposed to serious buyers. This is not to say that open houses cannot work, it’s simply something to consider and ask your agent about before launching your open house.

Myth #9: Home Improvements Pay for themselves

While home improvements will definitely help to improve your curb appeal and make the home more attractive, it does not necessarily mean that you will recoup the cost of those home improvements. According to the Remodeling magazine’s 2016 Remodeling Cost vs. Value Report, you’ll only recoup an average of 64% of the cost of the renovations made to the house.

This is something to consider before investing in your home and expecting to reap significant rewards in the future. Perhaps a better reason would be to improve your home for your own benefit as opposed to expecting a hefty ROI in the future.

Myth #10: All Agents are the Same

While the general process of buying or selling your home is usually the same across all boards, every agent has a different approach. Each agent has their own unique way of marketing and pricing your home to get you the house you want at the price you want. Sam Galloway has a very consumer-centric approach and he prides himself on having excellent customer service, and being accessible 24/7 to answer your questions and concerns. This commitment to his clients is what truly sets Sam apart, allowing him to deliver exceptional results for all of his clients.

Well there you have it, an indepth look at some of the most commonly asked myths in the industry. It’s important to do your own research and hire a knowledgeable real estate agent to help you navigate this important journey of buying or selling your home. We would love the chance to walk you through the process, give us a call today  to learn more and we can guarantee that you won’t regret it!

References

https://www.inman.com/2017/09/12/15-crazy-real-estate-myths-your-clients-probably-believe/

https://www.creacafe.ca/debunking-real-estate-myths-your-clients-probably-believe/

https://luxuryhomesjohannesburg.com/real-estate-blog/home-selling-myths/

https://www.cbc.ca/news/business/toronto-real-estate-market-cooling-1.6014466

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