Among all of the available investment opportunities, real estate is the one that buyers are most likely to become emotionally connected to. As a result, many misconceptions about real estate investing are used to justify people’s emotional decisions.
However, buying or selling a home is a significant life decision that should be approached with a lot of caution. Real estate misinformation is depressingly common, and it is quite often falsely welcomed and shared as “useful” advice.
Such pieces of advice are false narratives that adversely affect newbies as well as some seasoned investors. Although, many of them have no base. It can result in you taking too much risk, too little risk, or even to stop investing altogether, which is probably the most significant loss of all the mistakes.
Don’t let that happen to you! Let’s expose the most common yet mysterious myths of real estate investing and clear your vision for making profitable decisions for your investment.
1. You need big money to invest in real estate
If you believe that your dream isn’t financially feasible at this time, remember investing is different from home ownership. You’re creating passive income, which will pay off the mortgage. Furthermore, you may have opportunities to partner with others who are willing to provide private financing options or a lump sum of money up front. Financially speaking, it’s extremely plausible for even a small investment of money in the beginning. To some, home ownership may seem like a pipe dream – and depending on where you live that might be even more true.
2. Real estate investment is too risky and sophisticated.
People invest in stocks, SIPs, gold, bitcoin, etc. Every investment has a risk factor, but when we follow a solid step by step process real estate investments are less risky than other investment options available.
Everyone has a different risk tolerance level. Today, many people consider Real estate to be one of the safest investments you can make in terms of risk, as it constantly surpasses the stock, commodities and futures market while being a tangible asset.
3. Set your home’s selling price higher than you expect to receive.
If you list your property at an extremely high price, you may not be able to find a buyer. It’s because homes that are valued above market value are frequently overlooked by buyers and their real estate agents. Even in this highly competitive market; it may not be a good strategy unless your real estate agent has some solid rational to back this decision.
Be careful about following the hype and ignoring market dynamics. It always helps to work with an experienced agent (especially in your neighborhood) to price your home at a competitive level for the current markets. Be cautious of not falling prey to greed simply because it is a hot real estate market.
4. Don’t ever make a full-price offer on a home.
Many home buyers have been taught that you should never pay full price for a home. However, in today’s market, that blunder could cost you your dream home. Offer the asking price if you really want the house and it is competitively priced.
Based on the market, you might even want to make an offer that is higher than the asking price to get your dream home. Collaborate with a top agent to develop a successful strategy for obtaining the ideal home at the lowest possible price.
5. You will get a better deal if you are buying without a real estate agent.
True there may be no brokerage charge, but you should keep in mind that buying or selling property requires some sophisticated skill sets. It pays to get an expert in your corner. Don’t compromise and settle for the cheapest agent in town; Afterall if they couldn’t negotiate a fair pay for themselves what makes you believe they will fight for a bigger share for you.
Another benefit of working with a local realtor is that they may be able to provide quick comparatives and information on other projects in the region that suit your budget and may even be able to suggest better alternatives for your growth needs.
If you want to get the most out of your real estate investment and desire to generate passive income, you should need to have strong partners at the table by your side. When you are ready to take the first step towards making your real estate investment journey successful, we are here to help. As a turnkey real estate investment company, our goal is to help investors realize their goals by providing high quality real estate investments. When you choose to work with us, you will have access to the best real estate investments that are commercially viable, expertly vetted and generating positive cash flows.
We can help you out with this. Expert Investor Academy is a one stop Canadian real estate investment and training company. We are passionate about empowering real estate investors. Our proven strategies and process help you avoid costly errors while effectively removing potential roadblocks. Get in touch with us and take your real estate investment journey to the next level.