Talking about real estate can be stressful for some people. Rents continue to rise, and buying can be a painstaking process. Purchasing a house is one of the most significant financial choices you will make in your lifetime. It entails a large investment as well as long-term responsibilities. On the other hand, sellers want to maximize their return on investment (ROI). This is why misinformation can be dangerous. Poor research may lead to unpleasant surprises, such as realizing you’ve sold your property too cheaply or that your purchased home has hidden flaws or requires costly repairs. Before entering the market, educating yourself about real estate trends, local housing conditions, and buying and selling methods is critical.
We’re busting a few myths about this industry.
Myth #1: Selling your home on your own will save you money.
Some homeowners try to go it alone to save on commission expenses, only to discover that it’s not as simple as posting their property online. If you overprice your property, it can languish for months without a single offer. If you price the house less than it’s worth, you leave money on the table, potentially losing thousands of dollars.
Real estate professionals have experience in the best advertising strategies to reach potential buyers and gain more visibility and interest. They have local knowledge of property values and buyer preferences. Agents can advise you on negotiating the best offers and maximizing your profit.
Myth #2: Renovating your home is always worth the investment.
While most home improvement projects make the property more marketable and attractive to buyers, you won’t always see a dollar-for-dollar return. Sure, a new window installation or modern kitchen counter can upgrade a dated home, but not all makeovers are worth the investment.
Be mindful of the cost involved. Homeowners and contractors often underestimate the price of supplies, labour, and other fees. This can lead to unexpected expenses that can add up. As much as possible, owners should choose remodelling projects they can do without taking on a loan.
Before undergoing any home renovations, inform your insurer. People renovating your house may need liability insurance. Your contractor must also show proof of proper insurance coverage. It’s best to consult your agent on which renovations and repairs will increase the sale price.
Myth #3: You need to come up with a 20% down payment.
The Canadian Real Estate Association’s most recent statistics show that the national average house price in January 2023 was $612,204. Your downpayment is a proportion of the home’s price. In Canada, a 5% downpayment is required on properties under $500,000. For residences between $500,000 and $999,999, the down payment is 5% of $500,000 plus 10% of the rest.
Keep in mind that these are the very minimum requirements for mortgage eligibility. Every mortgage with a high ratio below 20% needs mortgage default insurance. This safeguards the lender if the borrower misses payments.
Myth #4 It’s OK to Do Away with Home Inspection
When investing in a home, it is essential to determine its real condition since many housing expenses are tied to upkeep and repair. Superficial alterations might conceal significant problems, so a comprehensive home inspector assessment is strongly advised. Some buyers may be tempted to bypass inspection to get ahead of other buyers. But a thorough investigation can reveal potential safety risks, including the presence of lead, structural issues, and mould. If these threats are discovered, it is critical to have the option to back out of the agreement.
Myth #5 You should avoid selling during winter.
While the real estate market may slow during the colder months, making it more challenging to sell a house, other factors trump the weather in buying decisions, such as economic conditions, mortgage rates, and local supply and demand. A knowledgeable real estate agent can help you assess the local market and advise you on the ideal time to sell.
Buying or selling a home is a complicated process. Our knowledgeable professionals are ready to assist you. We understand that each client’s needs are unique, so we always strive to deliver individualized service. Contact a RE/MAX agent today!