There are a lot of opinions out there about real estate, these are some of the most common myths we have found. Hopefully, this will get you off to a good start so that you can make the best choices. Whether you’re selling or buying, it is important to know what you are getting into and that you are making the right decisions. There are plenty of home-selling/buying myths that people often buy into and we are here to make sure that doesn’t happen to you.
1. Buying is ALWAYS Better than Renting
This depends largely on the price of the home and how long you plan on staying in it. It can generally take 5-7 years just to break even with the costs of buying, owning and selling a home, which is a pretty long time. If you purchase a home you would want to keep it for at least that long, but for some people that may be too long. That could potentially mean missing out on a job opportunity in a new city.
2. A 30-year Fixed Mortgage is Always the Best Deal
That could very well be true but that is only if you plan on staying in the home for 30 years, which is quite a long time. If you only plan on keeping a home for 5-7 years then obviously a fixed rate of 7 years would be way more appropriate. The longer you fix the rate, the higher your interest rate will be so you could be paying a higher rate for nothing.
3. You Must Redo your Kitchen and Bathroom Before Selling
While kitchens and bathrooms definitely can increase the value of your home, you won’t get a large return on investment if you do a major renovation right before selling. The focus should be on minor renovations instead of major. Minor renovations may be the best idea to reel in a buyer. Check out comparable listings in your neighborhood and see what work you need to do to compete in the current market.
4. The Outside of my Home isn’t as Important as the Inside
People are always making quick judgements, often based simply on the exterior of a home. I mean if you think about it, the outside of your home is extremely important. It is the first thing people see when they visit. Making sure the exterior of your home is in good shape is actually quite easy. All a home owner really needs to do is groom their yard, plant some flowers, paint the front door, install new porch lights etc. These small changes will really revamp the look of your home without too much effort.
5. If My Home Is Clean, I Don’t Need to Stage my Home
The market has become so competitive these days that simply cleaning your home is not enough. Stagers strive to make homes appeal to a broad range of tastes. They can skillfully identify ways to highlight your home’s best features and compensate for its shortcomings. You don’t necessarily have to hire a professional stager, but you should definitely use their tactics.
6. Granite and Stainless Steel Appliances are No Longer “In”
Most shoppers simply want to steer away from anything that looks dated. When you design a new space, you need to decide: ‘Am I doing this for myself or for resale?’ If you’re not planning to move anytime soon, you can decorate any way you like. If it is likely your house will be going on the market within the next couple of years, stick to elements that have mass appeal: neutral paint and tile colors, matching appliances or top-of-the line appliances.
7. New Home Buyers Can Look Past Colors
Moving is a lot of work and, while many buyers realize they could easily paint a room, they simply do not want to. One of the most important things you can do to update your home is to apply a fresh coat of neutral paint. This also helps the property stand out in online photography – which is where most potential buyers will get their first impression of your property. Regardless of whether you hire someone or paint it yourself, this is definitely a worthwhile and strategic investment.
8. Price High
Just like placing an offer on a house, determining your selling price is largely determined by your market. Your real estate agent should run a comparative market analysis to see how similar homes are selling in your area. It is so important to get the price right the first time – the first month your house is for sale is the most competitive.