Just because you read something on the internet doesn’t mean it’s true. A myth is an invented idea, story or concept. There are some myths about investing in real estate that are not generally true. Let’s address some of the top myths regarding real estate that may be discouraging you from owning the property or properties you desire.
Below we have debunked some top myths about real estate:
You need a lot of money to start
This is the biggest myth in real estate investing. There are many ways you can get started in real estate and some you can do with very little money. There is also the 20 percent down payment myth. While some lenders require this amount, it’s not a must. You can get a house without the 20 percent down payment for example in the highly priced neighborhoods. There are also a lot of financing options available.
You don’t need a real estate agent
You might find a lot of resources and information online, but you still need a good realtor. Having an excellent real estate agent is generally a good idea. When selling or buying a property it’s important to understand the process and nuances of buying and selling a home. Hiring a realtor can help you basically have all the information you need about real estate at your fingertips. No one knows the market and its trends better than a real estate agent.
Property gurus know everything
Be careful when listening to property gurus. There is a misconception that they know everything, but they may be more interested in selling you something then actually helping you.
They may have a very different personality and skill set than you do. What worked for them may not work for you. They may enjoy being on the phone selling all day and if you don’t like to sell, you may not find success with their course.
Making money is fast and easy in real estate
Newbies in real estate sometimes think it’s an amazing way to make quick money. This is generally a myth. You may make good money investing in real estate, but it’s usually not quick and easy money. You have to be patient and not rush the process. Impatience in real estate can lead to desperation, or making bad decisions. It can also lead to underpricing a property or selling it at a loss.
Overpricing to leave room for negotiations
One of the most important things when selling a house is correctly pricing it. Overpricing is dangerous and can lead to a home sitting on the market for a long time. There are buyers who may not take the time to find out if the price is negotiable or fixed. Once they hear the price, they may make a decision. If it’s priced too high, they move on to the next house. Don’t drive buyers away by overpricing.
Small markets don’t have good opportunities
Most people think that selling a home in a rural or suburban area is a waste of time. They think you can only command a good price for a home if you are in a big city and that’s a myth. This kind of thinking can keep you from some great real estate market opportunities, especially in emerging markets or areas that are rapidly growing.