Real Estate Facts - or Fiction?
Rick & Rick Strohm, Jr.
March 23, 2012
We have all heard "facts" about real estate - but are all of them true? I usually do not start out my blog by asking a question, but let's look at some real estate facts that you've heard and see if they are true or fiction:
1) Location, Location, Location. FACT!
This is very true when dealing with real estate. Obviously everything about a home can be changed/modified except for the home's location. Having a home in a bad part of town will drastically reduce the value of your home.
2) The cost of buying a home is more that it is to rent. Fact & Fiction.
An interesting statistic, provided from the National Association of Realtors, stated that in 98% of American cities it is surprisingly less expensive to buy a home than it is to rent. Of course it depends on the cost of the home you are wanting to purchase, the more expensive the home is the harder is may be to obtain (and keep in mind the money you will need for a down payment!). If you do not have the money to purchase a home right now, then your best option is to rent.
3) When selling your home...list high! Fiction.
It is best to "never" list higher than market value when selling/marketing your home. Most sellers think that when they list their home high they will have a greater room to bargain with the buyers. Unfortunately, when you list your home too high...buyers are turned off by the list price and will not view your home.
4) Buyers - always offer below market price. Fiction.
The keyword is "always", obviously this is not always the case. In today's real estate market seller's (when advised by an experienced Realtor) have listed their property at the right price (again there is always "wiggle room" in there so both the buyer and the seller feel like they "made a deal"). My suggestion for the buyer(s) is to consult with your Realtor and then come up with a fair price to offer that will not offend the seller(s). Again, talk with your Realtor before making an offer.
5) FSBO (For Sale By Owner) will save you money. Fiction.
This might be where I will get a lot of emails arguing this point; however, listing your home as a FSBO might save you the commission owed to the selling agent, but most FSBO sellers are willing to by a buyers broker commission. Here are the reasons you do not want to sell your property by FSBO:
Your property will not be seen on the MLS (Multiple Listing Service), which is used by all agents in that area
Will not have professional staging of your property to make it look more appealing
You will have to pay an attorney to assist you with the disclosures and contracts that will be involved in the sale
It all boils down to finding the "right" Realtor who will drastically assist you in selling your property, get the most eyes on your property and attract the right buyer. Contact me today if you are looking to sell your home or land here in the Smoky Mountain NC mountains!