5 Myths About Real Estate That You Are Too Smart to Believe

Mar 08, 2017

"Mom, do you really expect me to digest that old wives' tale? How can that pat of butter soothe a dry burn?" My daughter Richa, a real estate analyst, has this uncanny habit of questioning myths. I hate to admit, but I usually feel outsmarted by her logical reasoning and ways of getting down to the truth. In fact, just last Sunday, over a tea time discussion about the common myths plaguing real estate property buyers and sellers in the world, Richa kept separating facts from fiction. "Next time, please remember that you are smart enough not to believe such myths", she muttered as her parting shot.

My friend Asha, who was an active panelist in the discussion so far, suddenly became quiet. Having known my friend for a long time, I was certain that she was preparing a mental list. It took her precisely 30 seconds to rattle off the first myth.

Related: 10 facts about the real estate industry in India you won't believe!

Myth #1: The best real estate agents have most good buyers/ sellers up their sleeve

Fact: A reputed real estate agent does not necessarily mean that you will attract the best buyers or sellers straight away. For instance, if you are planning buying a property or investing in a new apartment, your agent should work along with you to get your dream home at the best price. Nothing is laid out on a platter; a lot of homework goes into clinching the most lucrative real estate deals.

Myth # 2 Renovate your bathroom and kitchen before reselling

Fact: If these two areas in your house are in working condition then your plans for restoration before resale may backfire. Your perspective buyers may need something else, disapprove of your taste, or want to dismantle something that's just been done. It's best to let things be as they are and allow buyers to spin their own scene.

Myth # 3 Listing homes at lower commission will get more profits

Fact: Like everything else, you get what's being paid for. Realtors with smart negotiating skills, long years of field experience, and enviable track records do not come cheap. If you wish to market your property properly and reach out to maximum buyers, you may have to pay high commissions for the services rendered.

Myth # 4 Ideally, young adults should stay away from home ownership investments

Today, buyers in their 20s are investing in their first, second, third-plus homes and properties every single day. An understanding of real estate expectations, handsome pay packages, simple finance tips, and the desire to attain long-term goals early in life are enough to aid their moves.

Related: You can invest in another property without being rich

Myth # 5 Trending features make homes sell like hot cakes

Typically, buyers have a 'wish list' and a 'must have list'. The former may encompass a main floor master room, walk-in closets, personal terrace, or other trending features that become 'avoidable' if your property offers other wonderful USPs. However, all essential features and functionality on the other list must be present for your property to sell.

After going through the recap and refilling her cuppa java, Asha asked with a bit of naughtiness writ large on her face, "But what about the other ten myths that have just crossed my mind?" When will our real estate expert debunk them?

That's another Sunday tea session gone for a toss, I sighed!