New to Real Estate? Understand the Truth of Popular Industry Myths
A newly minted real estate license is an exciting tool that opens a world of possibilities! But the market itself?
Well, it can seem a bit daunting to launch straight into the unknown. How do you know whether you want to focus on new build sales versus existing home sales, for example? Getting started is even harder when the market is riddled with cultural “wisdom” that is really more myth than fact.
The MYTH: Focus on New Home Sales Until You Gain Experience
The Facts: A whopping 50% of people buy a home they found on the internet.
Taking time to build your online brand presence is a must right from the start. After all, during the home buying process, a client is looking over the reviews of a new home builder and checking available websites for new listings on existing homes that have just hit the market, tracking everything from customer complaints to previously listed sale prices.
Today’s buyers expect to click a button to request a viewing of a home, apply for a mortgage online, and expect the document process to be as tech-friendly as possible. Younger buyers, in particular, will want to try to save money by going online, so get an online presence now and refine it as you go.
The MYTH: Working in the rental home market leads to home sales.
The FACTS: A meager 2% of renters actually buy the home they are renting.
Renting gives a potential home buyer the opportunity to see exactly what they hate about the existing house, its location, and its features.
Renting rarely leads to the conversion of purchasing that particular home, not only because of the dissatisfaction of the existing home but partly because the landlord does not typically want to part with the investment.
The MYTH: Homeownership is on the decline, due to Covid
The FACTS: The spike in home buying is real.
As a matter of fact, the National Association of Realtors reports that home values have increased by 3.7% over the past year. During the tough year of 2020, home sales rose to their highest peak since December 2006, which was considered a housing market boom.
What’s behind this move? Forced work-from-home conditions have caused many people to reflect on their current living situation, to make that move to a larger home, or to take advantage of low mortgage rates. As people evaluate their new needs in a remote or hybrid work environment, they are looking for existing homes that better meet their needs.
Ultimately, if you’re just getting started, don’t let the experience of others intimidate you out of either lucrative market. After all, just a few short years ago, the average realtor had 10 years of experience.