01 Sep Bad Advice Home Owners Get
You’re buying or selling your first house and have been given unsolicited advice from everyone including your neighbour and your crazy uncle. So who do you know what to believe? Don’t worry! We’ve compiled a few of the most common pieces of bad real estate advice that keep making the rounds. Avoid these common mistakes and you’ll be a real estate pro in no time!
"Your House is an Asset"
Unless you are buying a house without a mortgage (well done!) your house is a liability and an expensive one at that. If you have a 20 year mortgage you will have to cover those regular payments in sickness and health, for rich or for poor… the bank doesn’t care. A house can become an asset when it is paid off. For many people in expensive markets, renting can actually save you money in the long run.
"You can’t lose on investment properties in Vancouver or Toronto"
Yes, you can and this past year shows it. Speculation in these markets has resulted in some tough lessons for people looking to flip in Toronto especially. Over the past year some areas saw a drop in house prices of 15% or more. If you’re investing for long term growth you can ride out the recent dip. But for those looking to buy one year and sell the next, don’t expect to always get your money back, nevermind a profit.
"Save money by skipping maintenance"
A stitch in time saves nine. If you keep up on maintenance it will save you money when you do the maintenance later. Thinking to yourself that you’ll be in the ground before it’s a problem? Wrong again. If you sell the property because you’re heading to a retirement home you will have to disclose all known defects to a potential buyer (or you’re leaving it as a burden for your family when you pass). It is likely the repairs will be more expensive to fix later and will come off the sales price of your home.
"All REALTORS® are the same"
Not all REALTORS® are made equal. Some focus on residential while others like commercial. Some prefer buyers while others help sellers. Some are full time and others dabble. Just like every profession, no two REALTORS® are the same. This is where cold hard facts and performance data makes the difference. A good referral service won’t charge you a fee and will ask you questions about your needs to find you the right match. You will have peace of mind knowing that your agent has a demonstrated track record of success based on buying or selling homes just like yours.
Speak to a Professional
Keep these simple ideas in mind when you’re navigating important decisions like buying or selling real estate. This can be the largest investment of your life! At least now, if someone tries to give you bad real estate advice, you will be armed with a little more knowledge.
If you are still unsure, Contact a REALTOR® today to answer any questions you may have.