:: SUBURBAN LEGENDS ::
Urban Legends, Myths, Folklores of suburban Real Estate. There are lots of stories, saying, clichés that are referred to from friends, family, associates on what to do & what not to do when it comes to buying or selling property. The closet critic or weekend warrior of real estate is not the person any serious seller, buyer, private developer should placing faith into. Major decisions need major league management & consultation.
So lets dive into what is fact or fiction when it comes to real estate.
:: Common Sayings & References to Watch Out for….
“I don’t need a real estate agent to sell my property”
“Its not rocket science anyone can sell a house”
“Best way to choose an agent is go for the lowest commission”
“I only need to advertise online”
“If we renovate before selling we will get more”
“We should just put it on the market & see how we go”
“Property that goes to auction always sells over reserve price”
“Auctions are an expensive way to sell”
“The best time to sell is Spring”
“I should list my home at price higher than what I need so I can negotiate down”
“My home will sell really quickly”
“I wont sell unless I get exactly the price I want”
“You don’t need to quote a price guide”
“Property doubles in value every 8 years so my house is worth XXXX”
“I am not in any hurry to sell”
“You first offer is your best offer”
“I should List with the agent who has the highest appraisal price”
“Auctions are best way to sell”
“Silent & Discreet sales don’t get the best price”
“You can sell a house yourself now days with the internet”
“All Real estate agents are making a fortune with big fees”
“Award winning agents are the best to get when selling”
“#1 local area agent as advertised is the best”
“Pricing a home for sale is a mysterious process.”
” Property condition is not that important to buyers.”
“Empty homes are harder to sell than occupied homes.”
“Rental properties are really hard to sell”, wait until end of lease”
“Don’t need professional photos to sell a house”
“You got get a big for sale sign to be noticed”
“Three Free appraisals will tell me what to do as a seller”
“A buyers agent will cost me money”
“Just get a bunch of agent to advise on subdividing & do it yourself”
“Buy a unit & DIY renovations like on TV you can make money”
“Staging a home & hiring stuff doesn’t get you more money”
“SDS – Set Date Sale is the best method of selling”
“Auctions don’t work in WA”
“Don’t buy off the plan its too risky”
“When you subdivide your back yard there is no tax”
“Sellers are dwellers”
“Buyers are Liars”
“All agents Exaggerate”
:: How to react to the above sayings, comments, thoughts….
Just imagine making a decision is like sitting at the traffic light at an intersection.
Basically, Green is Go….Yellow is Caution…. Red is Stop.
If you need to get the “Real Answers” & get the green light….
Dial Dean on 0413122633 to have a chat on what is the real deal when it comes
to the many myths & misbeliefs in real estate.
:: More Myths & Truths
There are many myths surrounding what it takes to be a successful property investor.
Many people (unfortunately) believe luck plays a major role, while others believe lack
of time or money is holding them back. The truth is, those are simply myths.
Below are some common myths and/or excuses people use for not investing in real estate.
Myth 1 :: “You need money to make money”
The truth is you don’t need a lot of extra money to invest in real estate. In fact, when you
take into account the tax advantage, chances are you can afford to borrow more money
than you thought possible, especially if you have built up equity in your home for several
years. So, speak to your bank manager or finance provider today and ask them to calculate
how much you could borrow to invest in residential property. You may be surprised.
Myth 2 :: “I’ve got a job, a spouse, kids and little time on my hands”
Lack of time is a poor excuse for not investing in property. Throw out your television and
you’ll have all the time you need. Polls show adults can spend as much as three hours a day
in front of the television, more on weekends. So, if you’re stuck for things to do this Saturday,
load the kids in the car and start looking around at open houses. You may just find a bargain.
Myth 3 :: “Investing in real estate won’t make me rich”
Henry Ford once said, “Whether you think you can or think you can’t, you are right.”
There is no doubt that investing in real estate does have its risks, but over time, the rewards
can be substantial. History shows us that real estate has doubled in value over any ten year
period between 1970 and now. In other words, if you buy a $300,000 property today it could
be worth $600,000 in 2015. That’s an extra $30,000 a year, on top of your income that you
could be earning. What are you waiting for?
Myth 4 :: “There’s too much competition”
When property markets are busy, it seems every man and his dog is out there buying up property.
Conversely, when markets are slow no one wants to talk about real estate.
The secret is – don’t follow the herd mentality. If the time is right for you to invest in real estate,
ignore what your friends and family are saying and “just do it”. Don’t sit on the sidelines and
wait for the elusive ‘bargain’ to fall in your lap. Go out and make it happen.
Myth 5 :: “Investing doesn’t work in my market.”
Property investment works in EVERY market. True, it may work differently in some markets than
in others, but there are investors making money in every city, in every suburb, every day of the week.
Myth 6 :: “Certainly, inflation, unemployment and the decline of the stock market will
kill the economy, so anything I buy will go down in value.”
When everyone else is “dooming and glooming”, it only clears out the competition.
Think creatively and most importantly, ignore what you read in the newspapers.
The fact is whatever is happening with the stock market, or the economy,
real estate values have continued to rise over the medium to long term.
Myth 7 :: “Real Estate Agents won’t take me seriously”
The right agent can be your best friend and the number one source of bargains.
When you find an agent you can work with they will call you the minute a good deal passes their desk,
often ahead of other buyers. The key is to educate your agent about what you need and let them know
exactly what you’re looking for. Repeat business to a real estate agent is like gold, so make sure they
understand you’ll be giving them business over and over again.
Myth 8 :: “I need good credit rating to buy houses”
Good credit certainly helps when you buy your first property, which for most people is their home.
By the time most first time investors are ready to buy an investment property they have built up
significant equity in their home to make credit rating a non-issue. If you don’t already own a property,
talk to your bank anyway. A solid employment history and records of regular credit card or personal
loan payments may be enough.
Myth 9 :: Real Estate is risky
Real estate is one of the safest long term investment options available today.
The stock market is beyond your control because, more often than not, the companies whose stocks
you’re buying are owned and operated by people who you will never meet, or whom you have no
control over. On the other hand, with real estate you (and/or your partner) are the sole owners
and have absolute control over every decision associated with your investment.
Myth 10 :: I need more information before I start
Although you may never learn everything there is to know about investing in real estate,
you probably instinctively already know a lot. Success is an ongoing learning process, but these days,
with the internet and the number of books published on real estate investment, information is
everywhere. Read some books, research on the internet, or enlist the help of other successful
An intending purchaser should assess the suitability of an investment property in light of their
own needs and circumstances or consult an appropriately licensed financial adviser
and/or taxation specialist.
:: DIAL DEAN ::