When it comes to buying or selling a home, there's no shortage of advice and information out there. Some of what you've heard can actually be harmful to the selling process! We've ciphered through the myths to save you the hard work. Here are five real estate myths that you really need to ignore when buying or selling in Toronto and the rest of the GTA.

1. Start With A Low Offer

People always want a good deal, so it is common for folks to put in a lower offer to see if they can get the house for less than asking. This also gives you room for negotiation should the seller return with a counter-offer. However, given the intensity of the real estate market at present due to extremely low inventory, there is no room to start with low offers as you will likely be outbid by another buyer. Prices today are set according to well-established guidelines, which means that the house is often priced correctly and if anything, will sell for over asking.
 

2. Cash is King

For those who appreciate how hot the market is getting, they might think that a cash offer is the most attractive option for a seller. But the truth of the matter is, most people can not and do not buy with cash, they buy with a mortgage. If anything, cash should raise suspicions because it is not well-documented or traceable. 

 

3. Making Improvements Boosts Value

It is without a doubt that an improvement boosts a home's appearance, but not all home improvements give you your return on investment. Most improvements won't raise the value by enough to pay for themselves, with the possible exception of major structural work such as an extension or basement conversion. Rather than spend a fortune on upgrades and remodels, concentrate on fixing the big stuff and do a light improvement such as a fresh coat of paint. Buyers will have the opportunity to turn their home into the one of their dreams. 
 

4. You Can't Trust Real Estate Agents

For some unknown reason, real estate agents are treated warily. But if you think about how our earnings come from the commission of successful sales, we cannot be wary! It is in our interest to strike you a fair deal, and not to propose unrealistic prices in either direction. We are your advocate in the real estate market, not your enemy.
 

5. Buyers Can Leave Finance Until Later

Of all the things on the list of buying and selling a house, financing is certainly at the bottom. But if you don't get a pre-approval right at the start of the house-hunting journey, you can risk several major problems later on. What if you fall in love with a property that is out of your financial reach? Or what if you fall in love with a home, and start your application for a mortgage after - introducing deadly delays that let another buyer swoop in? 

Getting a pre-approval is paramount. It will highlight any problems with your credit file, and give you a chance to fix them before getting too deep into the buying process. 

Buying or selling a home in the GTA can be stressful, but it doesn't have to be complicated! We hope these myths have been debunked for you, and if you have any further questions please do not hesitate to reach out!

 

Thank you for reading today’s BLOG!



 
 
 

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Brian Kondo

Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-683-6025 direct

brian@briankondo.com
www.BrianKondo.com