Don't Believe Everything You Hear: A Real Estate Professional's Guide to Separating Fact from Fiction
When it comes to making one of the biggest decisions in your life, you want to be sure that you have all of the facts. This is especially true when it comes to buying or selling a home. You may have heard a lot of information from friends and family, but not all of it is accurate. There are likely some headlines regarding the housing market that you have seen or heard if you keep up with the news. Fact from fiction can be difficult to distinguish when the real estate market is altering. That's why it's important to consult with a professional real estate agent who can help you separate fact from fiction. An experienced real estate agent can help in this situation. So that you can truly comprehend the market today and what it implies for you, they can assist you disprove the headlines.
In this blog post, we will discuss some common myths about buying and selling homes and how a professional agent can help you navigate through the process successfully.
The three common housing market myths you may have heard are listed here, along with the expert analysis that corrects them.
Myth 1: Home Prices Are Going To Fall
Many purchasers may have seen or heard the urban legend that home prices are about to drop. This is due to the fact that headlines frequently describe what's happening with prices using comparable but different phrases. You may currently be seeing some of the following:
Arise in housing prices, or APPRECIATION.
Decline in housing values, often known as DEPRECIATION.
And DECELERATION, which is a slower but still upward trend in housing prices.
In actuality, specialists do not advocate for a reduction in pricing. Instead, they predict that appreciation will still occur, but more slowly. This implies that housing prices will continue to rise and not decrease. Selma Hepp, CoreLogic's deputy chief economist, explains:
“. . . More inventory and higher mortgage rates will result in slower price growth, but it is doubtful that prices will fall.”
Action drives price.
If you're thinking about buying a home, you may have heard that you need to put down 20% of the purchase price in order to get a mortgage. While this is true in some cases, it's not always the case. There are a number of programs available that allow buyers to put down as little as 0-% depending on their situation. A professional agent will be able to tell you what programs you may qualify for and help you find a home that fits your budget.
You may have also heard that you should buy the most expensive home you can afford. Again, this is not always the case. You should buy a home that fits your needs and your budget. If you buy more homes than you can afford, you may end up in a difficult financial situation down the road. A professional agent can help you find a home that fits your needs and budget.
If you want to sell your house, you need to get the right buyer. If you want to buy a house, then there's a good chance that the seller is looking for someone who will pay more than they're asking for it. And if you're an agent representing both buyers and sellers in real estate transactions, then this can also be true: The better trained your agents are at understanding their clients' needs and motivations—and acting accordingly—the more likely that transaction will go smoothly and quickly (and happily) for everyone involved!
Your property is worth what someone will pay for it.
The price you want to get for your property depends on a number of factors:
The market, which is driven by supply and demand. If there are more buyers than sellers in an area, then prices will go up; conversely, if there are more sellers than buyers in an area (or if they're all bidding against each other), prices will fall.
The condition of your property—whether it needs repairs or updates like painting or replacing windows; whether you have new carpeting installed; whether there's mold on the walls or water damage from leaks under sinks (which can spread).
Myth 2: The Housing Market Is in a Correction
The housing market being in a correction is another prevalent misconception. That is not the case, once more. This is why. In line with Forbes:
"A correction is a prolonged decrease in the price of an individual asset or the value of a market index. A correction is typically defined as a 10 to 20 percent value decline from a recent peak.”
As was already said, property prices are still rising, and experts predict that trend will continue, albeit more slowly. Since prices aren't dropping, the housing market isn't experiencing a correction. In comparison to the previous two years, which were virtually record-breaking in every regard, it is merely moderating.
Price it right and you will get the right buyer fast.
The first thing you need to know about pricing your property is that there's no such thing as "the right price." Every buyer has his or her own budget, and some are willing to pay more than others for the same thing.
If you're selling in a condo building, for example, your condo might be worth $300k but the people buying it may only want to spend $200k or even less than that if they have kids and don't want them moving out until they're older (or perhaps even college age). In this case, don't overprice yourself just because it sounds like something smart-sounding—it could backfire badly on your shoulders!
Similarly with single family homes: If a seller needs 20% down then he/she needs at least 20% equity + closing costs which means if he/she was going after someone who had 10% down then he'd have only 5% left over after paying closing costs & other fees associated with buying real estate such as title insurance etc..
The second thing you need to know is that if you price your home too low then buyers will think they're getting a good deal and make an offer on it. And thirdly, don't price your property too high so you don't scare away potential buyers.
If someone wants to buy your home, they have to have the money upfront. And that means you need to price your property within their budget. Pricing too high will scare away buyers who don't have as much money as you do, so make sure when you price your home it's within their budget.
Myth 3: The Housing Market will Collapse.
Concern about the property market being a bubble that is about to explode is being raised by some headlines. But analysts claim that today is not like 2008 at all. The fact that lending requirements are so different now is one of the causes.
Lead Analyst at HousingWire Logan Mohtashami explains:
“Some people are anxious that mortgage credit lending will become more stricter as recession talk gets more common. This generally occurs during a recession, but since there hasn't been a credit boom from 2008 to 2022, the idea that credit lending in America will collapse like it did from 2005 to 2008 is completely false.”
Trust a real estate professional when setting a price or deciding whether to sell.
It's important to get the advice of a real estate professional when setting a price or deciding whether to sell. A real estate professional will have the experience, knowledge and training to help you make the right decision.
A good agent knows what kind of market exists in your area, how long it's been going on, who owns what property and where they live (if anyone). They also know about zoning issues, building codes, neighborhood trends and other factors that affect pricing for similar properties in their local area.
In addition to knowing all this information about your particular neighborhood as well as other areas around town that may offer similar deals on homes for sale—or even better ones!—agents can quickly analyze these factors before making recommendations about which home fits best with yours based on its features like size; level lot; location within walking distance from amenities like schools/shops/transit stops etc...
When evaluating real estate agents, it's important to ask questions about their background and experience. You want someone who has been in the business for at least three years, or longer if possible. You also need an agent who specializes in working with buyers like yourself: first-time homebuyers or move-up buyers looking to purchase another house after selling their current one.
As you can see, there are many reasons that a real estate professional can help you sell your house quickly. You may not see it or think about it this way, but every property sale is unique. So when deciding on a price or whether to sell, trust the advice of someone who has been in this business for decades!
No matter what you’re hearing about the housing market, trust the experts and partner with a local real estate professional. When you do, you’ll have a knowledgeable authority on your side that knows the ins and outs of the market, including current trends, historical context, and so much more.
As you can see, it's important to consult with a professional real estate agent when you're buying or selling a home. An experienced agent will be able to help you separate fact from fiction and make sure that you're getting the best possible deal on your home. Contact Jacobs & Co. Real Estate today to learn more about how we can help you buy or sell your home. We look forward to hearing from you!
JACOBS & CO. REAL ESTATE, LLC.
12923 Fitzwater Dr. Nokesville, VA 20155
(703) 594-3800 | jacobsandco.com