As a Realtor I have the privilege of answering a lot of questions from buyers and sellers about real estate. I believe that the more informed we are, the better choices we make in life and there’s no such thing as a stupid question. I’ve encountered many real estate myths over the years that many people assume are true but simply aren’t. Here are a 6 common real estate myths that I’d like to put to rest.
- Spring is the best time to purchase a new house.
Spring is for sure the busiest time of year for real estate in Canada and spring buyers do enjoy the widest selection of homes to choose from compared with other times of the year. However, there are also more buyers looking for homes in the spring. This leads to many homes attracting multiple offers and selling for full price or more. In my opinion the best time of year to buy is November, December & January. Sellers at this time of year are usually motivated and there’s less chance of competition with other buyers.
- I should list my home with the number one agent in town
You see their signs all over town. Their faces adorn billboards and flyers. The “number one agent in town” has so many listings. He/she must be the best Realtor right? Actually the opposite is often true. The agent who spends a fortune on advertising, isn’t necessarily the best. In fact, some high profile agents sell less than half of all the properties they list. An extremely busy agent may have less time to devote to each listing, focusing on quantity rather than quality. It pays to do your homework!
- The assessment indicates what the property is worth
Many buyers look at the property assessment value on the listing for a clue as to what the property is worth. The assessment value is used to calculate the taxes for the property. The city multiplies the assessment value by the mill rate to set the property taxes for each property. A high assessment means higher property taxes. Although things like lot size and square footage of the house are used to calculate assessment, it has little correlation to the market value of the property.
- With the advent of the Internet, more and more homes are being sold privately.
Nope. Actually the share of sellers who choose to sell their home without a Realtor has decreased from about 20 percent in the late 1980s to about 10 percent today. In many instances, private sales are sold with the help of a buyer’s agent and only 4 in 10 private sellers say they would sell their next home without the assistance of a real estate professional.
- If I wait long enough, I’ll get the price I want.
Some sellers believe that there is an adverse relationship between how quickly they want to sell their home and the final selling price. They believe that if they wait long enough, eventually someone will buy their over-priced property. This is not true in most cases. The longer a property sits on the market, the more stale the listing becomes. Buyers and Realtors too, begin to wonder if there is something wrong with it and suspicion is the last thing you want a buyer to feel about your home. A well priced property will create more buzz, attract more showings and higher offers.
- I should avoid making lowball offers.
Actually there may be an appropriate time and place for a lowball offer. First of all, do not make a lowball offer on a property that is priced to sell. You’ll just be wasting everyone’s time. Second, do not make a lowball offer when a listing is new to the market. Even if you think the property is over-priced, the seller will not be ready to see the light. Once a property has been on the market for 60 days or more, depending on your market, the seller may be in more of a mood to haggle. Don’t worry about insulting the seller. It’s just business. He wasn’t worried about insulting you with his inflated asking price. However, I recommend asking your Realtor for guidance.
Dean Manton is Guelph and area’s real estate expert. Buying or selling put Dean’s 20 years of real estate experience to work for you!
