5 Real Estate Rules of Thumb: Fact or Fiction?

There are certain rules that some people might live by in real estate, but that doesn't mean that you should. It can be good to take a look at some of these "rules" to decide if they are fact or fiction. The first one is to always focus on location. This one is true. Out of the many things that you might be able to change in a newly bought property, location isn't one of them. The location decides your distance from your job, your neighbors, and the every-day-events of your life.
Another so-called rule is that it's cheaper to rent than to buy, and this one really depends on, once again, your location. It's true that to buy a home, a buyer must put down an amount of money upfront that a renter won't need to, but in many places it can be less expensive in the long run to own the property. In places like NYC, it's definitely cheaper to rent.
Thirdly, some believe that you should list a property high so that you have room to move around when the buyer comes to bargain. In today's market, there's a good chance your property will be completely overlooked when it comes to the preliminary online search. Most likely the buyer will be informed, and if they feel you're overpriced, they'll move on to the next property.
When buying, some think it's a good practice to offer 10% less than the asking price and this is not usually true. It's always good to find out and weigh why the owners are selling as well as to be aware of the mortgage deal and surrounding prices.
Lastly, many believe that listing a home for sale by owner will save money, but when you add in all the various details that you have to make sure are in place and the fees you pay in several different directions - fees usually covered by the single one you'd pay to the real estate agent - it probably won't save you as much as you think.

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POSTED November 12 2013 12:09 PM

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