Everyone seems to have an opinion about buying, selling, or investing in real estate. While most people mean well, they are often unqualified to offer advice regarding your particular situation, especially when dealing with high-end luxury properties.
Elise Losasso has the experience you need, with an in-depth knowledge of Denver, Colorado, and the surrounding areas. With hundreds of successful closings under her belt, Elise brings her competitive edge to every deal to ensure her clients get the best possible representation. As a skilled negotiator with a professional approach, she can help you buy or sell luxury property in Denver, Centennial, or Greenwood Village.
Elise Losasso is one of the most successful real estate agents in the Denver market, recognized in the top 1.5% of Realtors® nationwide. She can help you dispel the following real estate myths, providing unsurpassed services to achieve your real estate goals.
Myth #1: Luxury property homeowners prefer cash deals
Even though cash deals are always welcome and accepted, they are not the standard payment method for high-end properties. According to the REALTORS® Confidence Index Survey, in July 2023, only 26% of buyers had all-cash sales. That means three-quarters of the buyers worked with financial lenders to secure a mortgage to purchase a property.
Myth #2: Selling your house on your own saves money
Some people underestimate the value of an experienced real estate agent. Others even believe they can save money by selling their property on their own, which is referred to as For Sale By Owner (FSBO). In reality, a good agent is worth their weight in gold, providing invaluable advice and suggestions for securing the most lucrative deal.
The National Association of REALTORS® reported that 86% of sellers used a real estate agent to sell their home. Only 10% of 2021 home sales were FSBO, with the average home selling at $225,000 compared to agent-assisted home sales at $330,000. Sellers who worked with a real estate agent made significantly more in the purchase price than in the potential savings they predicted by working alone. FSBO sellers said they had the most difficulty understanding and performing paperwork. A knowledgeable agent can ensure all documents get properly executed to avoid deal-breaking issues at closing.
Myth #3: You need a 20% down payment to purchase a luxury property
While having a 20% down payment used to be the case, it is no longer necessary to put down this much money when securing a mortgage. While it is still a foolproof way to avoid paying private mortgage insurance (PMI), it is not required. For instance, FHA mortgages typically only require 3.5% down.
However, with luxury properties, traditional terms do not apply. A jumbo loan is needed for multi-million dollar properties that exceed the 2023 threshold of $726,200 for traditional loans. Lenders will take a deep dive into an applicant's financial stability to determine creditworthiness, with the down payment amount varying depending on the property's purchase price and the loan terms.
Myth #4: Buying new construction means less anticipated repairs
Sadly, many new home builders cut corners to sell homes faster and increase profits, passing off poor craftsmanship to unsuspecting buyers. While a new home may look aesthetically pleasing, it can have as many design flaws. It may even have more need for unexpected expensive repairs than an older home. Hiring a new construction home inspector can ensure all issues get addressed before closing, saving you time, money, and unnecessary stress.
Myth #5: If you don't have kids, the school district does not matter
Many people believe the school district you live in doesn't matter if you don't have children, which is not the case. Residents in higher-priced homes usually have access to a better educational system, which can put you in a better position when it comes time to sell your home. While taxes may be higher in a highly-regarded school district, the home values typically remain steady and can boost your resale advantage.
Myth #6: You should price your home high to leave room for negotiation
One of the most common real estate myths is to price your home high so that when you accept a lower offer, the buyer thinks they are getting a deal. That is not the case, and, in actuality, pricing a home too high can frighten away interested parties.
It is important to remain realistic when setting the purchase price of your home. Your real estate agent can evaluate your property and compare sales data from neighboring properties to give you an accurate range for pricing your home.
If you drive away too many potential buyers, there will be no left to negotiate with. Setting a realistic price will attract the right buyers, helping you secure an offer close to or at your original asking price.
Myth #7: If you see a property listed online, it is still available
This is one of the biggest misconceptions of those searching for properties online. Aggregator sites such as Zillow and Realtor.com collect information from the public record and MLS listings. Sometimes, the listing fails to get actively deleted after a property sells, leading potential buyers to think the house is still available.
A qualified real estate agent can help you navigate current MLS listings, making sure you don't get your heart set on a property that is already off the market.
Myth #8: Home renovations will provide a dollar-for-dollar ROI
Many homeowners are under the false belief that if they make home improvements before selling their property, they will get an equal return on investment (ROI). That is not the case, and while it may be tempting to update the carpeting or hire a contractor to renovate, it may not be worth it in the long run.
Pre-sale improvements are not always frowned upon, but it is crucial to understand what can help you sell the home quicker, what will get you a higher sales price, and what changes won't make a difference. A qualified real estate agent can help you determine what, if anything, needs to be taken care of before listing your property.
Don't be fooled by real estate myths, and get the facts from Elise Losasso
Listening to real estate myths from friends, family, and co-workers can lead to confusion and frustration. Worst of all, it can end up costing you money. Elise Losasso is a qualified Denver real estate agent who thoroughly understands the local real estate market and can help you navigate the buying or selling process.
Contact Elise Losasso to learn more about the current market trends in Denver, allowing her to assist you in meeting your real estate goals.
