There are misconceptions about every business or trade, so real estate is not immune. Over the last several years, I have heard plenty of misconceptions about buying, selling, investing, or practicing real estate. I finally had a chance to jot down my favorite and thought that I would share a few here, in an attempt to draw a distinction between fact and fiction.
Below is not the be-all-end-all of comprehensive lists, but just my top six misconceptions about real estate.
1) “I am not worried about inspection. There is nothing wrong with this house. The inspector will not find anything here.” In all of my years in real estate, I have never done an inspection where the inspector did not find something. They always find something. They are paid to find something!!! If you are selling a home, plan on dealing with inspection items.
2) “Selling a home is easy. Why do I need a Realtor?” If this were true, my profession would not exist.
3) “Anyone can be a Realtor. All you do is show homes to people. How hard can that be?” I too, once thought the same. Let me just say this: This job is not for the faint of heart. You work just on commission; there are a million and one variables that are out of your control, all of which can kill a deal and your paycheck after months of work. You deal with all kinds of personalities and you better be great at conflict resolution.
4) “I want to get into the fix and flip business. I see a lot of people making quick, easy cash doing it.” There is no such thing as “quick, easy cash.” Yes, I believe HGTV makes the fix and flip business look like a breeze. Before you go down that road, make sure that you really know how to buy and sell real estate, make sure you know home construction backwards and forwards, and make sure that you have the time and money. Last but not least, it is a high-risk business and it might be a good idea to talk with a few people who have been burned doing the same.
5) “I want to buy short sales and foreclosures because I want to get a deal.” More often than not, they’re not such a great deal when you factor in the time, money, and labor.
6) “My house will easily appraise for the purchase price.” Oh really? Talk with a few Realtors and I am sure that they’ll share a story or two about homes not appraising in this new world order of lending.