6 Real Estate Myths Debunked

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A home passes or fails inspection

An inspection assesses the current condition of a home. There is an inspection report rather than “pass or fail”.  The inspector will provide a report containing issues and a summary of the age of key systems, like the plumbing, electric, HVAC and roof along with the economic life remaining on the systems.  

If you hear that a home failed or passed they may be talking more about the lending process than the inspection.  Some lenders have specific inspection requirements, for example, a roof needs to have so much life left to qualify.

Inspectors have to find something, don’t they?

Inspectors are hired by the buyer to give an objective evaluation of the property.  Of course, no property is perfect and the inspector will find things.

However, an inspector is a professional and there is no secret conspiring behind the sellers back by the buyer. The best advice may be to obtain a pre-listing inspection list if you are wanting to sell your home.  That way you level the playing field.

Zillow says, therefore it is

Zillow obviously is not walking around current properties and pulling comparables up while doing specific adjustments for properties.

Zillow’s Zestimate is a consumer tool used to give a general idea of a value of a home.  By no means is it an exact valuation tool.  Zillow will not know the difference between why homes on one street have a different value than homes two streets over.

Multiple price reductions mean the seller is desperate to sell

The market is constantly changing and this can cause sellers to have the need to change their asking price to still have a competitive edge.  Price reductions are commonly made to bring homes in line with current comparables or to generate more traffic.

When making an offer on a home, you need to start with a low offer

Nothing is wrong with negotiating a price on a home, and most will want to do so.  However, if a home is priced within range an unrealistically low offer will make the seller not take you seriously.  It may even cause them to not counter back at all and just reject your offer.

It is better to price a home on the high side as the seller can always come down

Some sellers will use the logic that if they price their home high they will have more negotiating room and will ensure them not to sell it to low.  However, it often causes the home to sit on the market without receiving any interest. With few to no showings, the home will not gain any offers.

Resources:https://www.inman.com/2017/09/12/15-crazy-real-estate-myths-your-clients-probably-believe/