Everyone has an opinion about the real estate market these days, which means that myths and rumours are constantly swirling!
Not sure who to believe? This blog is all about debunking the tall tales you might have heard about real estate recently.
Myth 1: “The market’s too crazy right now, I shouldn’t even bother trying to buy!”
This is a belief that has unfortunately been blown out of proportion. There are still properties that are being listed below their fair market value.
Sure, aggressively priced properties are garnering lots of visits and offers (sometimes multiple), and many properties are selling way over asking. But this is in no way, shape, or form the norm for real estate transactions. At LJ Realties, we’re seeing tons of property that’s selling under asking, and we’re also seeing tons of property selling AT asking.
It all boils down to evaluating the listing price. What many people don’t realize is that the listing price is no more than a number that was agreed upon between the seller and their listing broker – no scientific formula involved!
That means that people are intentionally overpricing their homes to hit a certain portion of the market, and others are drastically undervaluing their properties to force a bidding war.
As a buyer, it’s all about discussing the dollars and cents with your real estate broker before you even visit a property. Are we actually looking at a house that is $500,000? Or are we looking at a house that will sell for $650,000? On the flip side, could we bargain for $450,000?
Myth 2: “If I don’t go directly to the listing broker, my offer will never be accepted.”
This myth is particularly unfortunate, because it leaves buyers very vulnerable to being taken advantage of or manipulated by listing brokers.
If you’re sourcing, visiting, and putting in offers without your own representation, you’re leaving yourself wide open to being swayed. People will run into a listing broker who is a very adept salesperson, can start building an emotional connection with the buyer, and can make them feel like the broker has their best interests in mind.
The reality is, that listing broker is only contractually obligated to the seller. They have one job: to make the sale of this property as advantageous to the seller as possible, whether that has to do with conditions of the sale, the price, or negotiation tactics regarding work that may need to be done to the property.
For all these reasons and more, it’s very important that buyers have representation and show up to the property well-informed.
Myth 3: “The market’s going to crash and burn – this is the peak.”
So many buyers fall into the trap of waiting for the market to cool off during a surge. They want to hold off because it’s “not a good time to buy.” It’s a concept that routinely paralyzes people from making moves with their investments.
In reality, the reason why it’s difficult to buy a property right now is not because it’s a bad time to buy – it’s because it is such a fantastic time to buy.
Hear us out. There’s a huge difference between it being a bad time to buy and a difficult time to buy. If you’re trying to carry out a real estate transaction without any kind of representation, without a team that’s working for you … yeah, maybe it is a bad time to buy. Because you’re not going to be able to move efficiently or make well-informed decisions.
However, if you partner with a trusted real estate broker that’s able to help you evaluate properties and protect you throughout the transaction, this is as great a time to buy as any!
Heard something through the grapevine and feeling curious about whether it’s true? Our myth busters can help! Reach out to our team with questions, observations, or to start looking into buyer representation.