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Buying or selling a house is, for many people, one of the most important moments of their lives, first of all because of the financial and personal decisions it involves.
Still, there are some myths that continue to influence choices, not always with foundation.
From the negotiation process to the ideal time to move forward with a sale, it is worth distinguishing myths from facts. In this article, we demystify seven ideas made about real estate and explain what you should evaluate in each case.
Myth 1: Advertising a higher price ensures a better sale
Not necessarily. A price above market value can drive away buyers and extend the marketing period. The value should take into account the price of similar properties, the characteristics of the house and demand. Data from the National Statistics Institute (INE) help to contextualize market trends, but should be complemented with an individual analysis.
Myth 2: The advertised price is never negotiable
There are owners who do not negotiate, but the advertised price is not always definitive. Negotiation, in a real estate context, can include deadlines, payment terms or equipment. A proposal based on data and clear objectives can be convincing.
Myth 3: All renovations add value to the property
Not all works pay off financially. Before remodeling to sell, compare costs and benefits according to the condition of the house and the demand profile in the area where the property is located. Small repairs, a careful presentation and improvements in energy efficiency can make more sense than a complete renovation.
Myth 4: It is only worth investing in the city center
The continuous appreciation of peripheral areas has contributed to demystifying this idea, but there are still buyers who disregard real estate investment opportunities outside city centers. The truth is that the value of a location does not derive only from its proximity to the center. Factors such as transport, services, the network of schools, infrastructure, and demand for rentals decisively influence the attractiveness of a property. The most important thing is that the analysis of an investment in a peripheral area considers the price, the dynamics of demand, the risks, and the potential for future appreciation.
Myth 5: A good salary is a guarantee of a mortgage
In home loans, banks analyse, in addition to income, expenses, effort rate, credit history and property valuation, among other factors. To compare proposals, consider not only the instalment, but also the Annual Percentage Rate of Charge (APR) and the associated costs. Banco de Portugal provides useful information in this regard.
Myth 6: Waiting for interest rates to go down is always better
A drop in interest rates can ease the cost of financing, but home prices and competition can also change. Instead of trying to predict the market, evaluate your budget, needs , and living horizon before buying a home.
Myth 7: Spring is the only good time to sell house
Spring helps: with more natural light, the house stands out in visitors. In addition, it is a good time for buyers to carry out changes or small works. However, an adjusted price, good photographs and careful publicity attract buyers all year round.
Decide with confidence, without myths
In real estate, myths lose strength when they are confronted with credible information. At Coldwell Banker Portugal, we help buyers, owners and investors evaluate opportunities with local knowledge, transparency and expert monitoring. Talk to a Coldwell Banker agency and find the professional support you need to take the next step.
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