Separating the Myth from Reality
Today’s hyper-competitive real estate market has triggered some common misperceptions among buyers and sellers. Before you buy or sell, it’s important to separate myth from reality so you can make informed decisions. We’re here to help if you have any questions.
Buyer Myths vs Realities
Myth: “I should wait to buy until home prices and mortgage rates fall.”
Reality: Experts across the board—from the National Association of REALTORS® (NAR®) to Realtor.com to Zillow—predict that prices and rates will continue to rise through the end of 2022. Today’s listing prices may feel high, but waiting can be costly.
Myth: “Waiving a home inspection is a good way to make my offer stand out.”
Reality: It’s true that waiving a home inspection might make your offer look better than someone else’s. But even newer homes sometimes hide unpleasant surprises. According to NAR®, roughly 80 percent of homebuyers hired a home inspector in 2020. If you’re a buyer, think of the inspection as your most powerful piece of leverage once you’re under contract. It can help you avoid costly surprises down the road.
Seller Myths vs Realities
Myth: “In this market, I can set the asking price at whatever I want.”
Reality: Homes need to be priced appropriately for the market and neighborhood. Every month a home goes unsold, you’re sinking money into a mortgage payment that you won’t get back. Unrealistic pricing can also create issues during appraisals, and can result in lost time and increased stress as the selling process drags on.
Myth: “I have to renovate my house before selling it.”
Reality: In sleepy markets, a renovation can sometimes accelerate a sale. But on the Front Range, renovating a home prior to listing it is often not worth the time or effort. Remember, renovations are almost never recouped at 100 percent, so you’ll be investing money you won’t get back, and the new owners will get the benefit.
These myths and more are on the minds of buyers and sellers in our current market. At WK Real Estate, we have the wisdom and knowledge to help navigate these complex decisions between myth and reality. When you are ready for trusted help, reach out to us.