If you're planning to buy or sell a home, then you should be prepared to receive loads of advice from family, friends, and neighbors. When it comes to real estate transactions, everyone has their own unique perspective. While advice can be helpful and well-intentioned, it's important to weigh the advice based on experience. The average person is involved in a real estate transaction once every 5 to 7 years while the average Masiello agent manages 11 transactions every year. These uneven experiences have given rise to numerous industry myths.

Working with a good real estate agent is the best way to receive the right advice and guidance when it comes to buying or selling your home. To help our clients make the best decisions, our brokers created a quick list of common real estate myths to help clear up any confusion.

Common Real Estate Myths

• Myth 1: You Need A 20% Down Payment And Closing Costs To Buy Your First Home
  While there are benefits to putting 20% down, remember it's not necessarily a requirement to purchase your first home. There are many different types of loan options available that give first-time homebuyers financing with a lower percent down. Depending on income and other qualifications, an FHA loan only requires a 3.5% down payment. Closing costs can also be negotiated. Buyers can seek a "seller assist," where the seller provides a credit to the buyer in order to cover closing costs or other items related to the transaction. The credit is added to the total of the sale price. Bottom line -- If you don't have 20% + closing costs in your savings account, you do have options.
  
  
• Myth 2: You Should Price Your Home Higher To Leave Room For Negotiations
  Sellers might be tempted to set a high asking price in an effort to leave room in case buyers attempt to negotiate down. However, this strategy often backfires. When setting a price that's too high, you decrease the size of your potential buyer market. Additionally, you'll find most buyers aren't going to pay significantly over the appraised value. Pricing your home too high might cause your home to sit on the market too long, cause some buyers to never consider your property or force you to lower your price, creating red flags to buyers who may wonder if something is wrong with the property.
  
  
• Myth 3: Getting Pre-Approved Can Be Done After You Find A Home
  Getting pre-approved is one of the first and most important steps in the home buying process. It's important to do so before you begin your search. Getting pre-approved gives you and your lender a better gauge of what you can afford. A pre-approval letter also shows sellers that you're serious about buying a home. While getting pre-approved can be done in a couple of days, this is precious time, especially in a hot seller's market. You don't want to miss out on your dream home because you waited too long to go through the pre-approval process.
  
  
• Myth 4: Selling Your Home Without A Real Estate Agent Will Save You Money
  A listing agent's commission is usually 2.5% to 3% of the sale price. As a result, some believe selling without an agent can result in thousands in savings. The truth is real estate agents provide so much value which is critical to maximizing your return on your home sale. Staging your home, listing photos, and negotiating experience are just a few of the many ways real estate agents work to earn you a higher sale price. Not to mention they'll save you a ton of time when it comes to managing all of the steps, appointments & deadlines in the closing process. Many who believe they can save thousands by selling a home without an agent ultimately leave money on the table without an experienced agent in their corner.
  
  
• Myth 5: Staging Your Home Is A Waste Of Time
  One of the most effective ways to sell a home at its highest market value is to create an experience that enables potential buyers to imagine themselves living in the space. Staging a home helps maximize the aesthetic and visual appeal of your home and creates a neutral yet attractive environment. A well-staged home will attract buyer attention through listing photos and draw them in during house tours. It will show the home in its best light, accenting those aspects that make it more desirable all leading to a higher sale price. If you're selling a vacant property, consider adding furniture to show the space when it's utilized. Or if the problem is you have too much stuff, consider getting a storage unit while your home is on the market.

Buying or selling a home can be a complex process, which is why you need an experienced agent in your corner. Our team has the experience you need to navigate today's local real estate market. For more tips, or to speak with one of our agents, contact us today.