Real estate is a trillion-dollar industry influenced by a multitude of factors. Participants come from a variety of backgrounds, ranging from individual homeowners to major investment firms. There are companies like the one founded by Steven Taylor Los Angeles that specialize solely in it. Businesses like the one principal Steven Taylor LA is involved in may purchase and renovate distressed property, focus on specific places, practice general real estate investment and more. Because real estate is complicated and multi-faceted, there are a lot of misconceptions floating around about it. Here are four of them.
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1. Open Houses Are a Great Selling Tactic
It is often stated that “open houses sell houses.” The reality is that while they may generate a few offers, the odds are against this happening. They don’t necessarily harm the chances of selling a property, but they don’t exactly help either. This is because they often attract people who are not serious buyers, like curious neighbors, and even those scoping out the terrain for their own purposes such as thieves. Data from the National Association of Realtors shows that among “for sale by owner” sales in 2020 only 11% could be attributed to open houses.
2. Large Renovation Projects Always Pay for Themselves
There are renovations that do end up paying for themselves by raising a building’s value. However, this is not a guarantee as people have different tastes. A sleek contemporary style kitchen may appeal to one prospective buyer while lowering the interest of another. Certain changes have a higher chance of attracting people, but others like installing a pool might be slightly riskier.
3. It’s Easy to Save Money by Cutting Out the Middleman
It is not impossible to make sales without an agent. However, not having one makes the process considerably more difficult. Real estate representatives perform important tasks such as weeding out unqualified buyers, giving advice and negotiating. Agents working with potential purchasers may also discourage their clients from offering for a house being sold by an unrepresented individual.
4. Setting a Higher Price Is a Good Move
A tactic that is commonly employed is initially pricing a place above its actual value. This may be attributed to the belief that it creates a base for negotiating the actual desired cost. However, it turns off some searchers and may lead to a longer time on the market.
There are many myths about the real estate industry besides the ones listed here. It is important to be aware of them, especially for those looking to sell their homes.