The real estate business can be quite daunting to those on the outside, and this leads to some confusion when buying or selling a home and understanding real estate concepts. To help demystify the industry, these are our top 10 misunderstood real estate concepts for buyers and sellers in Virginia, Maryland, and D.C..
You will often hear that the factor that matters most in real estate is “location, location, location,” and it’s very true.
This isn’t just about ocean views but could include proximity to schools, hospitals, shopping, and even major travel routes. In most cases, people want to live close enough to these spots that they’re easy to visit, but far enough away to avoid the noise and local traffic they bring.
It’s assumed by many that your agent’s commission is set in stone, but that is not true.
Like most things throughout the process of buying or selling property, your agent’s commission is one of the negotiable real estate concepts. We recommend shopping around for an agent you feel you can trust and is willing to work with you.
One of the heaviest hitters in the world of misunderstandings in real estate, a dual agent is one agent facilitating a single real estate transaction between both buyer and seller.
If you find yourself in a dual agent situation, it is incredibly important that you understand the agent does not represent you. This means the agent does not represent your interests in negotiations and is to act neutral if any problems should arise.
Being pre-approved for your mortgage is not the same as having secured financing, and it’s one of the most misunderstood real estate concepts.
There are many hoops your lender still has to jump through before you can receive finalized approval. Take your pre-approval with a grain of salt and understand that things could change with your lender.
When we hear the phrase “curb appeal” we often get stuck thinking about grass and plants, but the entire outer picture of your home is part of this equation.
Maintaining clean exterior siding and gutters contributes just as much to a great first impression.
When a seller is preparing their home for sale, they will do some cleaning and organize their belongings by shoving them into storage areas.
Decluttering applies to storage and closets, so do not neglect them for the sake of making the open living space appear pristine. If you have a lot of items to store, utilizing an off-site storage facility or a friend’s house can alleviate your troubles.
As a seller, you expect and want interested parties to view your property.
However, this goes beyond the Sunday open houses and into private showings with maybe 24 hours notice. Be ready for a showing at the drop of a hat, and make yourself scarce to help the process along.
Always take inspections seriously and carefully review the results of any inspections with your agent.
Inspections exist to help a buyer secure financing while ensuring the integrity of the property through an independent third party.
Much like an inspection, an appraisal is required by a mortgage lender to guarantee the lender is making a worthwhile investment.
The lender wants to make sure that if the borrower fails to fulfill their financial obligations, they are taking on a property with which they can recoup their costs.
Once inspections have been completed, it’s expected that a buyer will request some additional repairs, contingencies, or renegotiation to the original deal.
Some buyers will forego requesting repairs done by the seller in lieu of an adjustment in price so the buyer can do the repairs themselves.
Help Understanding Real Estate Concepts in Virginia, Maryland, and D.C.
There’s a lot that goes into buying and selling a house. For professional guidance on the most misunderstood real estate concepts, contact us at 703-782-4422!