Top 13 Real Estate Myths

Myths are referred to as mis conceptions that surround a certain idea or a thing. These are generally created due to people’s experiences. For example: A builder does not lay bricks properly while laying the foundations and the building collapses causing injuries to the workers. This can lead to cause a mis conception among the people that construction work is not safe, if a few more incidents happen. Although this mis conception is bizarre, it will be agreed upon by the people as they have some examples in front of them that verify their beliefs. There are many myths in the world, some are known to be not true, while others are strongly believed by groups of people. Just like this, there are many myths in the real estate industry that affect the buyers and sellers alike. Let’s have a look at the top 13 real estate myths and find out whether they are true or not.

• A cheap property means a bad property

A lot of people initially judge the property on the basis of its price. It is believed that cheap properties are not good properties, since they have problems that the seller is aware of. While this may be true in some cases, the reality is a bit different. Often times, the seller is looking for an urgent flow of cash whether for a personal need or for investment purpose. If the property is priced high, it narrows down the list of potential buyers as not everyone can afford a highly priced property. So, in hopes to attract more people and potentially sell the house, sellers sometimes list their properties for lower value. Although it is to be noted that despite the low value, the properties still are not sold for less than they were bought.

In Pakistan, a lot of people invest in property as it is a considered a good area of investment. Thus, the chances that you are buying property from someone who does this business for a living are high. Even if you don’t, nobody is going to sell you their property for less than what it is worth for. Thus, it is proved that lower costing property isn’t always problematic and bad. However, if you ever come across a property that you think is much cheaper than it should be, you can get it inspected and make an informed decision. Beware though, such properties have a higher chance of having some problem so getting them inspected is a safer option.

• Setting a high price means your property is a better value

It is a common practice to place a higher demand for your property so that you can secure a deal near the price of your liking. This not only sets a bad precedence for the real estate market but also affects the potential buyer list for your property as well. The chances of such properties are much lower than the ones reasonably priced. Moreover, less and less people approach you as the high prices don’t attract as many people as they should.

Instead of setting an unreasonably high price for your property, conduct a market survey to find out what other properties near yours are selling for. This gives you an idea of what the market situation is, and you should be expecting for your property. You should set some bargaining margin for your property that lets you in landing a decent deal after negotiation. This not only attracts more people but also increases the selling chances of your property.

• Buying a house is a guaranteed good investment

A lot of people invest in houses to get a good profit out of them. Although this is mainly true, it is not necessary that all house investments are equally good. When investing in a house, there are a couple of things you should consider:

1. The number of rooms in the house
2. The size of the rooms
3. The layout of the house
4. The area where the house is situated in
5. Facilities near by

These are some of the key factors that inform the buying decision of majority of buyers. If your property is an odd entity in any of the above-mentioned points, the chances of it selling at a good price are low. Thus, while investing in a house you should take care of these points to guarantee a good profit margin.

For example: If you buy a house in an unpopular society that is half developed and has improper roads and no proper facilities, the chances of it selling for a good value are very low. However, if you invest in Bodla homes, the chances are much higher as they provide modern design, an adequate number of rooms and all the things you desire in a room. Their location is also prime as they are situated in DHA phase 5 and near all the basic facilities you could need.

• The cost of the house is the only expense

A lot of people think that the only expense they have to bear while buying a house is the cost of the house. This cannot be further from the truth as there are some other expenses that come with it as well. While buying a house, you have to pay property tax that is according to the overall value of the house. If you are a tax filer, the tax for you will be lower for those who are non-tax filers. Moreover, depending on the society your house is situated in you may have to pay that society tax as well. Thus, while buying a house, check for the details of the taxes you will have to pay so that you don’t end up in a tight situation.

• You need to have cash in hand while buying a house

In Pakistan a lot of people prefer to have cash in hand while buying things for example: cars, houses etc. This has led to Pakistan buying a debit-oriented market rather than credit oriented such as some Western counterparts. What this essentially means that more and more people rely on cash in hand than getting things on credit etc. However, this does not mean you have to have cash in hand while buying a house. There are other ways to buying a house without having the full amount in your bank for example: buying the house on lease.

This is a good way to get the house of your dreams without having cash in hand. Different banks provide different interest rates. You can carry in-depth research before choosing a bank to get the lowest interest rates. However, if you do not want to pay interest, you can opt for banks that do not charge interest and follow Takaful based banking.

• Big homes are always better than small homes

Another common myth that surrounds the real estate market is that big homes are always better than relatively smaller homes as they have more space. However, in reality more space does not always equate in efficient usage of the space. Sometimes, a lot of the space in the house is wasted unnecessarily. This can be because of multiple reasons such as an oversized kitchen, closet, washrooms etc.

While buying a house always make sure that the space is properly utilized. Sometimes, smaller houses utilize the space in the most efficient way as they have to provide more value in less space. You might not need two huge sized rooms with humungous washrooms, TV lounge and a kitchen. However, you probably will need adequately sized multiples rooms that can house more people and fulfill your needs.

A good rule can be to check whether the house feels spacious enough and fulfills all your needs. If the answer is yes, then you should go for it however if it is the latter then you should probably look for another house.

• Opting for low quality building materials is a good way of saving money

All building materials are the same irrespective of their quality, right? Wrong! How a product will perform in the long run depends on how good quality it is. Different products have different purposes. Some products are to be exposed to weather conditions while some are to be used daily inside. If a product is low quality, it will wear out quickly and will need to be replaced more often. This means you will have to replace it time and again and it will consume a lot of money. Moreover, if a critical thing breaks it can cause a lot of inconvenience and prove to be heavy on the pocket for example: a water pipe failure etc.

Such a thing would not only be costly to repair but can also cause a lot of other problems such as electricity shortage etc. While constructing a house, make sure to use good quality products that have a good reputation in the market. This way you can save yourself from unnecessary future inconveniences and uncalled for future expenses.

• Renting out property means income only

While renting out property, a lot of people are not mentally ready for the potential expenses that can show up in future. When a person rents out their property, it is there responsibility to carry out repairs if there need to be any. It is also a common mis conception that new properties don’t need to be repaired as they don’t have any problems. This can be true if they are properly used however, if used roughly they can break and need fixes.

Although rents do bring in cash flow, but that does not mean you will not have to spend money on your property. You will need to carry out the essential repairs when renting the property out to a new tenant especially visual repairs such as paint etc. Moreover, you might end up paying a large sum of money if a critical thing breaks thus, you should always be mentally prepared for that.

Another thing to notice is that you cannot just ignore the needed repairs as the tenants might vacate your property because of negligence on your part. Thus, you need to understand that renting out property does not mean income only. Sometimes it calls for some investment on repairs as well.

• Your house does not need staging before showing it to potential buyers

If your house is in pristine condition, then you might not need to stage your house. However, if it is in a rough shape, getting it staged can brighten up your chances of securing a deal. Just keep in mind to not get carried away during the process. If you’re spending renovation money on the staging process, you might as well get it fully renovated.

While staging make sure to get a fresh coat of pastel colored paint if your walls are in a bad shape. Apart from that carry all the necessary repairs to make your house look good and perform good. For example: repairing the tap that broke might be a good place to get started. A good rule to observe while carrying out home staging is to make it look as open and fresh as possible. Just don’t get carried away with that bucket of white paint and that is the end of point 9 of real estate myths.

•  Houses with windows are a privacy risk

It is a common myth that houses with big windows are a privacy risk. That is mainly because windows provide outsiders with a view of the inside of the house that you might not want them to see. However, this is an easy fix. You can install curtains that block the view from the outside. Another more effective solution is to get window tints installed on your windows. A lot of companies manufacture tints that are made specifically for houses, shops etc. This is a better option since it does not obstruct your view from the inside but blocks the inside view of the house from outside.

Big windows are a good feature to have in house as they welcome a lot of sunlight in the house. This is a good thing as it lights up the house and it can help you on saving some money on electricity but most importantly it keeps the interior fresh. The tints reduce the intensity of the sunlight by blocking Ultraviolet and gamma rays that are harmful for your skin. Thus, this myth is also busted. Let’s head onto myth number eleven.

•  You don’t need property insurance

Property insurance is one of those things that you don’t know worth of until you need one. A lot of people think of insurance as a waste of money as it does not contribute to anything productive in their lives and is a constant source of money drain. However, it is a must have as it saves you from investing large sums of money when something bad happens.

However, an important thing to note is that you should go through the extent of coverage your insurance company provides. Find the plan that is suitable for you and get your property insured. There are multiple insurance companies in Pakistan that provide a wide range of coverage. You can easily find the one that is the best for you.

•  You cannot buy property without a real estate agent

Although it is advised to find a good real estate agent, it is not necessary in order to buy your desired property. Real estate agents make your property buying / selling process easy by doing all the work for you. However, you can do all these things on your own. You can easily find properties on online platforms, tour them, negotiate and carry out all the paperwork. However, having a real estate agent would make the process much easier.

•  Hiring a real estate agent is a waste of money

Last but not the least, whether hiring a real estate is worth the money. This debate has been going on for the longest and has created some confusion among people as well. Well, it is true that real estate agents charge money, but they provide a wide range of services that make your property buying / selling experience much easier and simpler. Thus, you should invest your money on one.

A word from Bodla Group

Bodla Group provides a wide range of services, from brokering to building. Our newest project Bodla Homes in DHA phase 5, Multan is a testament to our commitment to the industry. Our work in DHA Multan shows nothing but excellence. Apart from Bodla Homes, the construction of roads in Askari 3, Dham and renovation of houses at Sehar Villas and Shah Rukn e Alam, Multan shows the capability and versatility of Bodla Group. The versatile portfolio of Bodla Group shows our commitment and proves that we can get the job done. So, wait no more, get your house built today.