Whether you are selling or buying a home, it is important to separate the truth from fiction. False information about real estate can potentially cost you money. To help you with mastering the real estate market, here are some myths and the truth.
You Can Recover the Costs of Renovations
In some instances, renovating certain areas of your home before selling can possibly help draw in buyers. However, there is no guarantee that the funds spent on the renovation will be recouped when the home is sold.
For instance, in 2016, only 67.8 percent of the costs of a major kitchen remodel were recouped when a home was sold. Only 70 percent of the cost of remodeling a bathroom was recovered.
Although renovating a space might help make the sale, in some instances, simply adjusting the sale price of the home makes more sense. Whether or not it does depends on several factors, such as the features in comparable homes sold in the area in recent months.
If most of the homes sold had renovations done, it might be necessary for you to do so. Your real estate agent can help you assess whether or not making changes to your home are necessary.
New Builds Do Not Need an Inspection
One of the biggest mistakes that any homebuyer can make is skipping the home inspection. Even newly built homes require an inspection. An inspection can find a host of problems that could be costly for you to repair later.
For instance, the ductwork or central heating and cooling system might be improperly installed. The home could even have improper wiring. The only way to pinpoint these problems is with a thorough inspection by a professional.
If you waive the home inspection, you could possibly have to pay the bill for repairing issues that are discovered later. However, with the inspection, you could require the builder to repair the issues before you buy the home.
Your Home Will Not Sell Without an Open House
Home improvement shows tout the benefits of an open house and many sellers believe that without one, their home will not sell. In actuality, an open house is not always required for selling a home.
Real estate agents use a number of methods to sell a home. For instance, an agent can rely on networking to find potential buyers. By doing this, your agent can target certain buyers who might be interested in a property such as yours.
Consult with your real estate agent to clear up other misconceptions about buying and selling a home.
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