Having your own home or your private real estate investment is one of our greatest dreams. Some of us are living that dream while others are still on the journey of finding that dream house. But if you plan on being a home or real estate owner and you think it’s going to be all roses and sunsets throughout, think again!
Yes, investing in real estate has a lot of benefits but it comes with its fair share of surprises and turns.
“It’s not about money or connections — It’s the willingness to outwork and outlearn everyone.” — Mark Cuban
Like any and every business, there are risks associated with it, and one of the struggles you will have to face when dealing with real estate is facing the reality and accepting that all is not how it seems. This doesn’t mean you can’t or shouldn’t invest in real estate but you should be well informed about how the industry operates. I’m sure you must have heard of or even met individuals who have made a fortune from real estate, and if you want to be just like them or even better, you’re in the right place to learn just how.
Expectation: Find the right home, right away.
Reality: Most buyers think all they’ll need to do is to visit a few houses but this notion is hardly correct due to amenities or pricing, unique to the various houses previously visited. This also applies to selling, when sellers think that only after a few showings, their properties would be sold.
Expectation: Selling at a high price and fast.
Reality: Most sellers are glad as soon as they have a house to sell but the way they lose enthusiasm as days become weeks which may come as a surprise. Many of those houses can spend sometimes months before finally been sold. Several factors affect the demand of the house you want to sell and sometimes, you’re not just getting buyers. As a seller, your house can mean the world to you so you will want to sell it at a very good price, but it may not be worth that much to your buyer. As a seller, you now have to negotiate and most times you will have to drop your price especially when the property has been in the market for a long time.
Expectation: Avoiding additional cost.
Reality: Many buyers forget to take into consideration the mandatory fees in the process of buying. They forget they will need to pay charges such as agent fees, inspection fee and some other.
Other Expectations and Realities:
- You may expect that all you will need to buy your dream house is a pre-approved loan and deposit the money and you’re close to getting your dream house but the reality is quite different. You should keep in mind that property down payment cost more and you will have to take into consideration to get just the pre-approval of the house. Other factors like your credit history, expenses needed for renovation also affect the amount you spend.
- With a growing number of real estate agents, you would imagine that finding a good agent would be one of the easiest steps but you’ll be surprised. You will find it to be one of the hardest tasks you’ll undertake. For an industry as big as real estate, there are definitely scammers and bad agents who will try to steal from you but better than that, there are agents who can make you a fortune of money.
- As a buyer, you will imagine that your real estate agent will constantly be in contact with you but that hardly happens. Most times, you will not be the only client to an agent so they won’t have time to be at every text and call of every one of their clients. I would advise that you trust your real estate agent to make the best decisions for you.
- The real estate is as competitive as other investments like stock exchange bonds, etc. You may have set a fixed price, but ultimately, the price of your property is determined by the highest bidding buyer is willing to offer as per the current market rates.
You can and you should learn about real estate but you should not risk purchasing or using the market without professional assistance. This is because these professionals know the markers for scams and will guide you to invest wisely and get the best returns possible. But even with the best advice, you can still lose your investments. It’s a market, always keep it at the back of your mind that bad things do happen and it’s not all of your investments that’ll end as profit. So alongside, no matter how well trained you are or the agent you use, always be ready to handle disappointments.