Common Myths About Real Estate
Common Myths About Real Estate
Square Footage Price: Buyers and sellers sometimes think that a home can be evaluated based on price per square foot. This approach to value should only be used as a very rough rule of thumb and not used when making an offer. Here is an example: a 1,700 square foot 4 bedroom home in pristine condition with a pool and in a good location is obviously worth more per square foot than a 1,700 square foot 3 bedroom home in fair condition with no pool and in a less desirable location.
My Cousin Has a Real Estate License in
I Don’t Want to Bother My Realtor® Until I’m Ready to Buy or Sell: Though we appreciate your intent, it is important to get initial counseling from your local Realtor® so that your home buying or selling process can be efficient, effective, and safe.
I’ll Sell It As-Is to Save Money: This is true in some markets. However, in today’s market, fixing up the home attracts additional buyers and gives you a larger pool of buyers to sell to, particularly the first time home buyers who may not have extra money at the close of escrow to fix up the home. It also would prevent you from competing with many of the foreclosed properties.
The First Offer is Always the Best One: Sellers often hear this old cliché when considering offers. Trust me, there is no magic to being the first one. Professional representation from your Realtor® is critical in evaluating all of the terms and the price of an offer.
The Art of Leveraging AKA Using Other People’s Money: During boom periods in the market, it is often said, “borrow as much as you can on each property to maximize the amount of properties you can own”. This theory should be used cautiously as increasing one’s equity rather than using it can add stability to your life. It can also be a hedge against inflation.
Put My Home’s Equity to Use: Be careful not to use your home like an ATM machine. Some people have used a 30 year re-financed mortgage on their home as a way to pay off short term loans like credit cards and automobiles. This means that you could be paying now for the car you owned 25 years ago.
Consult your local Realtor® for pertinent advice that will benefit you and your family.
