Just like most things out there, there are plenty of myths and incorrect assumptions made about the real estate industry. So whether you’ve heard from a friend of a friend, know someone whose uncle was a real estate agent, or you’ve just never had the opportunity to clear a few things up - here is the lowdown on some of the biggest myths in real estate. 

1. Auctions are the best way to sell property for the highest price

The truth is, sometimes auctions don’t work. It depends on the current marketplace, the location and how much demand there is for the property which is for sale.

Vendors can often get caught up in the excitement of seeing people bidding for their home, but the result is that the final price is determined by the under bidder - not the winner of the auction. When someone has reached their maximum, the other party only has to beat that price by a thousand or so dollars. But what if they had actually been willing to pay many more thousands/ten of thousands more for the property?

2. Never put your property on the market in winter

There are actually plenty of reasons why selling in winter can be a good idea - from less competition, to people having more availability to view homes. But what is more important to know is that the best time to put a property on the market is when you actually ready to commit to the sales process.

You need to have the time to get your house sorted, as well as make decisions on a range of things. And you will probably have to search for a new home too, so it is best that you are in the right space to do so.

Read more: When is the best time to sell your home? 

3. A quick renovation before selling will get you a better sale price

You should never just embark on a renovation because you are going to sell your home. There are a lot of other things to weigh up - particularly if there is a possibility you could overcapitalise and not actually see the price of the renovation be put back on the value of the property.

Simple cosmetic changes are usually the best way to go, leaving the property open to possibilities that the new owners may wish to make.  

4. It is easy to sell a house privately - a real estate agent isn’t a necessity

Sure, you can take photos of your home and list it on a website. That part is certainly easy to take care of. But the real value of an agent is about much more than taking care of those kind of tasks - and it all comes down to the power and ability to negotiate.

It can be an awkward and uncomfortable process to have to deal directly with potential buyers of your property, and if you don’t have the right skills or confidence - you could easily let your home go for tens of thousands of dollars less than what it is worth.

5. It’s best to inflate the asking price, so you can negotiate down to what you want

There is plenty of risk associated with this strategy - with the main one being excluding a large portion of buyers in your target market because they think it is well out of their budget.  

There are plenty of ways to still get the right sale price for your property without over-inflating what you are asking for it, and this can come via the right strategy and approach.    

6. The more agents you have selling your property, the better chance of a sale

It is better to cast 10 lines to find a buyer than just one, right? Wrong. Sure, there might be the odd occasion where going exclusive with an agency is what you need to do to get your property sold, but the truth is, by offering the property to multiple real estate agents, you’re doing yourself a large disservice.

There aren’t many people out there who would be happy to work really hard to try and get a job done, without a guarantee of being paid at the end of it all. Which is why when you sign up with a sole agency, they know once they have invested all the time and energy into marketing your home, there is a good chance they will get the commission for selling it.  

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So, you're going put your house on the market? You better check our free guide to make sure you've covered off all the essentials of getting your property ready for sale.