real estate myths
Jun 16, 2022
Published by Derek Timmons

The 5 Most Common Real Estate Myths of 2022 Debunked

With the overwhelming amount of information available online, it’s not always easy to determine what’s true and what’s not. You’ve probably already come across a good number of inaccurate information yourself.

As with everything, there are also a lot of misconceptions about real estate. People tend to easily believe something that makes sense. And only a few would actually spend time and effort on fact-checking these pieces of information just to make sure they’re true.

Luckily for you, we’re here to talk about the most common real estate myths that people have. We’ll tell you why these aren’t true and give you facts that you can then take with you as you navigate the world of real estate.

Header image source: Pixabay

Myth #1: Price High, Offer Less

A first-time or agent-less home seller tends to price their home higher than its actual value. The thinking is that they can maximize their profit in this way.

In an ideal situation, a buyer agrees with the adjusted selling price and they’ll get more than they initially wanted. But if a buyer tries to negotiate for a lower price, they can reduce it to the original selling price and still profit from it. And also, they can make the buyer think they really sold the home for less.

But that’s not the case, though. In reality, when you price your home higher than its actual value, you’ll end up losing potential buyers. If your home doesn’t fit their budget, they wouldn’t even think of placing an offer for it. And if your house stays on the market long enough, you’ll actually be losing more money.

In other cases, especially if your buyer is applying for a mortgage, the house has to be appraised for its value. Once the appraised value ends up being lower than your selling price, a sale might not push through. Or you’ll end up lowering your selling price just to secure the sale.

If you really want to sell your home for maximum profit, price it based on its actual value. Doing so helps you get more potential buyers and have higher chances of selling it.

Buyers also tend to have the same thinking, especially those who don’t have agents helping them. They try to offer less than the selling price to see if the seller would agree with it. In an ideal situation, the seller will agree and the buyer will be able to save some money.

But again, it almost doesn’t happen in real life. If you place a lowball offer on a home, you risk losing it just like that. Especially in a seller’s market, a low offer wouldn’t even be considered.

If you really want to buy a home, make sure you place a competitive offer for it. Don’t try to one-up the seller hoping you could save some money.

Myth #2: Renovate Before Selling

It’s also a common misconception that you have to renovate your home before selling it. It’s true that a kitchen or bathroom renovation will give you a bang for your buck.

But this isn’t always the case. If your home is still in good condition and has no significant damages that could lower its value, you don’t have to renovate it.

People also tend to overdo these renovations thinking that the more they renovate the home, the more its value increases.

But then again, not all renovations to your home will give you a good return on your investment. Only invest in the ones you need or the ones that could attract more potential buyers to check on your property.

Myth #3: Get a Mortgage Preapproval After Finding a Home

As a buyer, you might think that the most important thing is finding a home you like first and foremost. It’s true to some extent. But then again, so is getting preapproved for a mortgage.

You should apply for a mortgage preapproval even before you start looking around for homes. Doing so helps you know the price range of homes you can afford. Instead of combing through thousands of listings, you can narrow down your search to only the properties that are within your budget.

Also, noting in your offer that you’ve been preapproved for a mortgage increases your credibility with the seller. It tells them that you can afford to pay for the home. And thus, it increases your chances of securing the home for yourself (as long as you place a competitive offer, of course).

You can always still get a mortgage preappproval after finding a home. But then again, once you find out you can’t afford the home that you want after all, it just crushes your dreams, doesn’t it?

Myth #4: Sell Your House FSBO to Save Money

Most newbies in real estate think they can just wing it. You might have come across articles that tell you that you can sell your home “for sale by owner” (FSBO) and save some money on agent commissions.

But while it may work for some, it doesn’t work for everybody. And sadly, in most cases, it could actually cause you to lose more money. It’s not as easy as making a listing for your home and putting up a “for sale” sign in your front yard.

Agents have an established network of people that could help you secure a sale much quicker. They can connect you to buyers who are serious about buying a home. They could also tell you how much you should sell your home for based on the current market prices so that you can still get maximum profit.

Myth #5: All Agents are the Same

When buying or selling a home, it’s important to find the right agent for you. All agents have different skill sets and experiences that make them perfect for a specific type of client.

You could have a team of agents working on different aspects of your transaction. Or you could also have an all-in-one agent working with you. Some agents have backgrounds on marketing, finance, or law which can help you go through the buying or selling process much easier.

Not all agents are the same. Some have more to offer than others. Some are a better fit for you than others. You’re investing your money on them anyway. So, why not make sure your money goes somewhere it’s worth it?

Finding the Right Real Estate Agent For You

2022 real estate myths debunked

Image source: Pexels

Real estate isn’t a go big or go home kind of thing. It’s one of the biggest investments you’ll make, so it’s important to make sure you do it right. Whether you’re buying or selling a property, it’s best to talk with a real estate agent to find the best course of action.

It’s all about finding the right realtor or agency for you. Get in touch with an agency like Maverick Group for free home evaluation services. This will help you prepare for your home sale better.

Again, don’t forget these five real estate myths of 2022 that we’ve already debunked:

  • Price high, offer less. Price your home for its actual value. Place a competitive offer on a home you like.
  • Renovate before selling. Only invest in renovations that increase your property value and give you a good return on your investment.
  • Get a mortgage preapproval after finding a home. Do this before finding a home to have a smoother process.
  • Sell your house FSBO to save money. Hire an agent to help you sell your home faster and for more profit.
  • All agents are the same. Some agents are a better fit for your situation, so it’s important to find the right agent for you.
Written By

Derek Timmons

Derek is a top performing REALTOR® in Airdrie, Alberta, Canada. Aside from knowing the market, he uses his knowledge and experience in construction to help clients understand exactly what they're in for when buying and selling real estate.