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3 Myths About Real Estate You Need To Stop Believing

By
Real Estate Agent with Lebrau Property

Are you interested in real estate but confused by some of the myths and misconceptions you've heard? Don't worry - you're not alone. In this blog post, we'll be taking a look at three common myths about real estate and debunking them so you can confidently enter the real estate market. So, let's get started by taking a closer look at these three myths about real estate that you need to stop believing!

The biggest myth: location, location, location

When it comes to real estate, many people immediately think of the old adage, “location, location, location.” While it’s true that certain locations can have an impact on the value of a home or other property, it’s not the only factor you should consider. A good location can be helpful, but other features such as the home's condition, the size of the lot and local amenities can also affect the prices. If you're planning to purchase a property, make sure to look out for any signs of malfunctioning appliances - including refrigerator problems - during your initial walk-throughs. Refrigerator repair may seem like a small detail in comparison to things like square footage or outdoor living space, but a malfunctioning refrigerator can quickly become a huge expense for potential buyers.

The second myth: real estate is always a good investment

Many people believe that real estate is always a sure-fire way to make money, but this simply isn't the case. While it's true that there are many ways to make money in real estate, it's important to remember that there are just as many ways to lose money. Real estate investments can be extremely profitable if done correctly, but they should not be taken lightly. If you purchase a property that needs major repairs or you buy a property in an area with declining property values, you could end up losing a lot of money. Before investing in any type of real estate, it is important to thoroughly inspect the property as well as its surrounding area. Look for signs of malfunctioning appliances such as refrigerators as the cost of such repairs can add up quickly, eating into any potential profits from your investment. Hire a qualified inspector to determine whether any repairs will be required in the near future.

The third myth: you need a lot of money to get started in real estate

Many people believe that you need a large amount of money to get into real estate, but this is simply not true. You don’t need to have a lot of money saved up to get started in the world of real estate. You can start small and work your way up. For example, if you want to get into real estate investing, you can start by investing in rental properties. You don’t need a large amount of capital to purchase a property. You can purchase a fixer-upper and invest in it as well. Doing repairs yourself can also help you save on costs. Real estate investing doesn’t have to be expensive. With some creativity and hard work, you can make a good return on your investment with minimal capital. So don’t let the myth that you need a lot of money stop you from getting into the real estate game.

Zachary Boutin, CPA
First Response Resolution, LLC - Eagle Point, OR
Oregon's Tax Problem Solver

Great points, thank you for the post. We moved into our first home and the refrigerator failed within the first 6 months. We thought it would be fine because we had a home warranty included in the sale. The repair company they chose sent a technician out 6 times, each time I had to take time off of work, and he still couldn't fix the issue. The warranty company refused to cover the expense to replace or the cost of the spoiled food, and we ended up buying a new fridge out of pocket despite the warranty. That new fridge also failed within the first year right before Thanksgiving! This time we bought an extended warranty from Lowes and they took care of it. In any case, watch out for refrigerators!

Feb 17, 2023 11:20 PM
Deepak Chauhan Asso-Broker, MLO
Versailles Property - Irvine, CA
Your Solution-Oriented Realtor

Pero la funcionalidad del frigorífico no tiene nada que ver con la ubicación location location. Me ha dado la impresión de que estás acabando con el mito de la ubicación de un inmueble. La infraestructura y el clima lo son todo, y entran en la categoría de ubicación. Llamaré al sindicato.

Feb 18, 2023 12:08 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Thanks Craig for the real estate myth busters!!!

When it comes to real estate, many people immediately think of the old adage, “location, location, location.” While it’s true that certain locations can have an impact on the value of a home or other property, it’s not the only factor you should consider. A good location can be helpful, but other features such as the home's condition, the size of the lot and local amenities can also affect the prices. 

Feb 18, 2023 04:22 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Craig. The right location is in the mind of the buyer. Some favor what is popular and some choose for themselves. And, some lose on their investment. So with all that said, jump in and test the waters. Enjoy your day.

Feb 18, 2023 05:28 AM
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

Good information, ...  as with any "desired wants or needs" Location, can be identified as one of those.  Just as wanting a 3 car garage... it's the priority placed on the real estate purchase.

Feb 20, 2023 11:48 AM