Here are top 5 real estate myths that you must know:-
When we are thinking of real estate, we think of either buying or selling it. We might also come across different misconceptions. This holds a person or keeps them from making a decision of buying a home or making a choice. People may also take advice from their near and dear ones who are already in this profession. There might be some common myths that will be discussed below:-
– It is probably not the best time to sell or buy a home – This is myth number one. It is always a good investment. Buying a home makes a lot of difference. According to property owner, if you wait, then the prices may reach sky level. You must not calculate the interest of current price that which may be higher when added to its price. But if you wait longer, then this may cause the value of the property to dip as the depreciation value would be calculated. If you are looking to get the best deal out of it, then you must keep an eye on the real price of the property. But that might be a long wait and may cause you to lose a good deal. Long term investment is always good investment.
– Cut out the Middleman part – There is no single need for hiring a real estate broker or a middle man when you look for a home for yourself. This will save you from paying commission to the broker. This is myth number two. If you are going to buy a house, then you may or may not hire a real estate broker to help you find an ideal home and pay them remuneration for their work well done. You are probably unaware of the services that a professional real estate agency might be able to provide you. Is there any risk involved in hiring a real estate agent? They are more experienced in this field as they deal with tens and hundreds of properties every day to help customers find their dream home.
– You might be able to save more if you buy directly from developer or the builder – This is yet another myth and one of the most ridiculous one that portrays the buyers. Developers usually have a fixed rate per unit, which cannot be increased by any marketer or any sales agent. Certain buyers may have to rue the fact that marketers charge those more and thus would head out directly to a developer. If the buyer buys from a property from any channel or directly from developer, the price and its rates would be the same. The only difference is that, if the buyer buys from property from the developer, then commission stays with the developer as they can earn more and not the buyer.
– You do not need specialized knowledge for property dealing – This is our myth number 4. Specialized skills and knowledge is very much required in the real estate industry to find a dream home for yourself and your family. This is not just buying or selling a property, it has some technical terms as well. Seeking help from a professional real estate consultant will get the job done. Both buyer and seller parties must be experienced enough to buy and sell real estate.
– Commission or brokerage is quite high – This is also a common myth as buyers might think that real estate brokerage is way too high. You must be wrong to think that there is no expenditure involved in introducing a buyer or a seller. There are also risks and expenses involved in running a real estate business. There are miscellaneous expenses, running costs, advertisements costs and government taxes. If anyone calculates the amount, then standard commission is 2%, as it does not look to be a lucrative one. As an FMGC company, it can provide a 10% to 30% margin to the retailer or the distributor. The calculated amount is low. But if any one calculates the volume, then you will surely understand that the commission of the consultant is quite low.