Beware these five misconceptions when buying or selling.
This market has changed the way you need to think about real estate in general. Today I’m sharing five myths and misconceptions about today’s market that we’ve been hearing a lot:
1. Get pre-approved after you find the perfect home. This market is moving so quickly. There’s limited inventory, and interest rates are great, but they’re going up. If you wait until the last minute to get pre-approved, that may be just enough time for another buyer who has already been approved or potentially has cash to sneak in and get their offer accepted. It’s always best to be pre-approved beforehand. It doesn’t cost anything, gets all your ducks in a row, lets you know what your financial position is, and has you prepared if that perfect home pops up on the market.
2. Always start with your lowest offer. In previous markets, starting low was a good strategy, but right now if you start low there’s a chance you don’t even get a second shot at the home. A lot of the offers we’re seeing now are at list price or even above in many cases. That’s where we come in as your advisor. We’ll recommend where you should start. Starting at the bottom never ends well, especially in today’s multiple-offer market.
3. Price your house on the high side. In this market, there’s no such thing as underpricing. We are seeing homes sit on the market for an extended period if they are overpriced because many buyers think that any home is likely going to sell at asking price or potentially higher. If they think it’s overpriced, many buyers won’t even go see it or write an offer. It’s better to price at either fair market value or slightly below that.
4. Renovating your house will always net you more money. In this market, speeding to the market and getting buyers through the door is more important than having it perfect. We’ll walk through your home and let you know which renovations and fixes will put more money in your pocket and which to avoid.
5. It’s safe to skip the home inspection if the home looks good. We’re having to reduce or even remove contingencies like the home inspection contingency or taking the home as is because it’s so competitive, but that should never stop you from doing a home inspection and keeping yourself protected. We recommend doing one, keep that information set aside, and make those fixes on your own later.
If you have any real estate questions, don’t hesitate to give us a call. Have a great day.