Hawaii real estate investment is one of the most lucrative options available today. But there are very many widespread misconceptions regarding how the industry operates. It is very beneficial to comprehend the facts related to investment seeing as it is that not being fully aware could considerably impair your investment.
The first most widespread misconception is the importance of contracting a realtor, whether or not they are useful or are a simple waste of time and money. Rest assured that a realtor is very important because unless you are an expert in the field, if you don’t have anyone to represent and advice you, you could make mistakes easily. It is always advisable that someone counsels you especially when taking such a huge step and the counsel should come from none other than someone with practical knowledge.
Second misconception is that real estate agents earn a salary. No, not at all, they earn their share through commissions upon closing a deal. Note that the commission figure that the agent gets will be determined by the cost of the property, and its location to some extent. Still on point, many people have been erroneously led to believe that when buying a residential property, one is supposed to pay the agent for their advice. It is because of this misconception that many people proceed investing in real estate without representation. Rest assured that it is the proprietor and not the buyer who pays the realtor.
The other widespread misconception is that there is an ideal time for real estate buying and selling. Many people who are of this idea believe that since they think that houses aren’t expensive, individuals will purchase. Rest assured that people buy property when there is a need to do so, regardless of the price. What this therefore means is that if property is highly priced yet there is a need, it will have to be bought. On the other hand, if properties are cheap and there is no need, people won’t buy it.
Lastly, some people have been led to believe that marketing a residential at an extremely low price is a great approach. In every sense of the word it is but mostly the buyer will be uncertain that the deal is as good as it sounds. Most buyers will have the impression that the property has some flaws, and refuse to buy… why? Because people will rarely believe that something so valuable could cost that little. Make a reasonable underpricing if you must but don’t overdo it.