Seven Residential Real Estate Myths Busted
In the realm of real estate, there are many long-held myths about what makes a valuable and smart property investment. We’ve all come believe that “location, location, location” is paramount when purchasing a new townhome or condo, but are these maxims really true?
After pouring over years of residential real estate data and numbers, Zillow CEO Spencer Rascoff and chief economist Stan Humphries have questioned the validity of seven popular adages in the industry, giving new homebuyers something to think about before taking the plunge.
7 real estate myths busted
- Location is key, but look toward the future – In their new book, “Zillow Talk: The New Rules of Real Estate,” Humphries and Rascoff claim that today’s location isn’t nearly as important as to what the neighborhood will be like in 10 or 20 years. Will infrastructure improve, new developments or schools pop up nearby, or other changes that can affect the value and curb appeal of your home-to-be.
- Don’t buy the worst or smallest house on the block – Market data has proven that buying the worst house in the neighborhood or gated community isn’t so wise after all, as price gains on these properties typically underperform their surrounding homes. The authors suggest that savvy homebuyers consider purchasing a fixer upper in the “hottest” or most sought-after neighborhood within five years of it becoming popular.
- Remodel your bathroom before your kitchen – Data shows that extensive kitchen renovations with pricy upgrades have a low return on investment compared to say, a modest bathroom remodel.
- Home ownership isn’t right for everyone – Most of the properties low-income buyers can afford are in less affluent areas where homes don’t hold their value and suffer the effects of price instability.
- Firesales and foreclosures aren’t the deal of the century – Steep discounts on foreclosed properties are often misleading, caution Humphries and Rascoff, who say it’s like comparing apples to oranges since the advertised prices are compared to non-foreclosed properties.
- Mortgage interest deductions are an ill-conceived public policy – The real estate experts argue that such deductions cost the federal government $100 billion in lost tax revenue every year, just to help Americans live in homes valued at $865,000.
- Listing your property before March in time for Spring buyers – is no longer necessary given today’s internet age where many buyers search for homes online. To get yours on the top of the web page, it’s better to list in late March, or after the Masters golf tournament.
Move in ready homes in Delaware
As the real estate marketplace continues to evolve, so does the way that Americans buy homes. And now more than ever, it’s a buyer’s market in the United States, with incredible deals to be found along the Eastern Seaboard. Montchanin Builders features a selection of affordable move in ready homes in Delaware – a state known for its historic attractions, gorgeous beaches and business-friendly tax laws.
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BizJournals.com, 7 real estate myths busted by ‘Zillow Talk’ http://www.bizjournals.com/sanfrancisco/blog/2015/01/residential-real-estate-myths-busted-zillow-talk.html?page=all