Real estate has been through a really rough phase. While the market has slowly regained its footing back, there are lots of misconceptions that are still being passed around among buyers and sellers. While some of them have a hint of truth, others are outright false. Let us set the record straight by debunking the top myths about real estate.
1. You need a lot of money to start :- One of the biggest myths about real estate investing is that you need a lot of money to start. This is not true. If you take some time to learn the intricacies of the real estate trade, you can get started as a real estate investor with very little money. The key is to begin slow and know what to do after you have the home locked up.
2. There are no opportunities in small markets :- Don’t fall for the real estate myth that says that you have in a hot or an up-and-coming market to make money out of your real estate investment. You might feel safer to invest in a property located close to a posh area, there are investors successfully investing in smaller markets too. In Pune, micro markets like Loni Kalbhor (Pune-Solapur Highway), Ambegaon, Undri Pisoli are performing exceptionally in property appreciation terms. Whether you are lending, building or re-selling, there are always bigger opportunities to be explored in the small untouched area. The key is to be vigilant enough to identify these markets.
3. Every penny you spend on home renovation adds into property’s value:- Many people spend a lot of money on remodelling the house before putting it for sale. While home improvement projects increase property’s worth to some extent, it might not be in accordance to the money you have spent. Renovating a home before moving in is a great idea but before moving out, not so great!
4. You should price your home higher to leave room for negotiation:- This is far from being true. If your home is overpriced, a lot of potential buyers may back out before making it to the negotiation stage. A home which is well priced, to begin with is more likely to sell quickly. Ask your real estate agent for a comparative market analysis and determine a reasonable price for your home based on other homes in that area.
5. A house that doesn’t have trendy features won’t sell :- Many people believe that in order to sell your house quickly, it must have the latest and trendy features that buyer wants. While having latest features in the house is definitely a plus, not having them doesn’t make your property a bad option. Not every buyer has the same set of demands and you will eventually find buyers who will be happy with what your house has to offer.