The real estate market is rife with myths and half-truths. We’re here to clarify what’s true, what’s not, and how you can make the right move every time.
Myth 1: Wait it out
Recently, buyers have been asking us, “Should I wait to buy a home until interest rates come back down and prices fall even further?”
The reality is, those two things are inversely correlated. As interest rates come down, prices are going to go up. So the best time to buy a home would be right now, if you want to take advantage of lower prices.
Then, when interest rates dip, you can refinance your property to take advantage of the lower rates at that point. Our suggestion: if you are in the market to buy a home in the next 12 to 24 months, now is a great time to jump in and even negotiate on price.
Myth 2: Price to the moon
When listing a property, a seller might say, “I can price the property however I want. There are enough buyers out there. I’m going to get what I ask for.”
That might have been true at one point, but the market has shifted. Buyers are now a lot more diligent and demanding when it comes to price. If you set a price that is unrealistic, your property is going to sit on the market for a long time.
This is going to leave buyers wondering what’s wrong with your home. Why isn’t it selling? Are there mold issues? Are there foundation issues? Are you hiding something?
The longer your home sits on the market, the lower people’s interest will be, and you’ll inevitably end up taking a beating on the price. The best strategy is to make sure you list at market value to drum up buyer interest.
Myth 3: Skip the inspection
Some buyers may want to waive their home inspection. This is something we’ve seen a little more frequently in the last 2 to 3 years, because buyers have been desperate to make their offer as enticing as possible.
However, this is something we do not recommend at all, especially in the current market. There is a lot less buy-side demand right now, which means we can be a lot more picky when looking for homes and do even more due diligence.
We can get experts to come in to conduct additional reporting and verification when necessary. So please, please, please – don’t waive your inspection condition!
Myth 4: Renovate before listing
Some people feel the need to do a massive reno before putting their property up for sale. In our experience, it’s rare for sellers to recuperate the full value of their upgrades, especially in a short period of time.
It is very, very difficult to find a buyer that just so happened to want that exact finishing for the kitchen, the floors, etc. Instead, we recommend doing targeted touch-ups, like applying a coat of fresh paint or decluttering before showings begin.
Overall, it’s never a good idea to undertake a full renovation, because it’s essentially impossible to anticipate the next owner’s tastes and may diminish your pool of buyers as a result.
These are just four of the many myths circulating around the real estate industry these days. Curious about what else is out there? Reach out and we’ll be happy to address whatever you’ve heard!