Myths and Realities of Real Estate

Property investments, real estate purchase, construction of projects and so on! The real estate industry offers diverse opportunities to grow. With potential attached, investors often believe in myths of real estate. For instance, getting clients is a piece of cake, or real estate agents are always deceiving. However, in many cases, the reality is the opposite.  

The property industry is an exciting and hopeful venture of investors, buyers and agents. It is important to know about myths and realities of real estate are essential to new investors. It helps to understand what’s best in buyers/investor interest; sound knowledge of market investments can offer maximum profit and lesser risks.

To ensure you do not fall into the trap of these misconceptions, Reall.Pk has gathered a list of myths and realities of real estate. So why wait? Let’s get started:

Myth 1:

Real estate agents get rich fast:

Many people think that real estate agents make quick money and often get disappointed when things do not go their way in a couple of months.  

Reality:

Being a property agent means preferring customer needs ahead of yours, and it means you will have to compromise on your income sometimes. You will need to spend on customers, which can cost a reasonable amount. Things can get more challenging when you enter the real estate profession under budget. So it is true that you can get rich, but not very fast.

Myth # 2:

Real estate is all about construction:

Many people in Pakistan think that the only profitable business in real estate is the construction business. But it is not quite right.

Reality:

The real estate industry is much more than brick and mortar business. There are several opportunities in real estate in the contemporary era, like house flipping, investment in plots, architecture, designs, etc.

Myth 3:

Getting clients is an easy task:

People usually see a real estate agent successfully closing deals and steadily making money. But that’s not how this industry works.

Reality:

A steady stream of serious clients is the most critical part. It takes time to create a steady chain of potential clients. The agent is not supposed to sell homes only; they are meant to market themselves in the market.

You will be answering the question, "why someone should choose someone you out of all other agents in the area?" When you can answer the question clearly and confidently and communicate well, you can market yourself and get an easy, steady income.

Remember that marketing is not a game of the day or two; with your skills, devotion and reliability, you can reach potential buyers easily. However, it takes time which can be months or years.

Myths 4:

New Agents do not have satisfactory knowledge:

It is a very common myth of real estate that new agents do not know about property deals. Few things that newbie do not know how to negotiate and lack experience.

Reality:

The reality of real estate agents is that they have sound knowledge of the area, and they can give you better customer service than you can ever imagine of. A real estate agent is a qualified person who offers services in the property industry. As a new real estate agent, the person is eager to learn more, educate themselves faster and stay up-to-date with the market.

In many cases, new real estate agents are better at closing than the old ones. They know the trend in the market, they are better and quick learners. Most importantly, new real estate agents are eager to make their stable position and better market, so they work more attentively.

Myth # 5

Real Estate Market is always rising:

People believe that the real estate market is always profit-generating which is not right 100%. People think that investing any time in the
property industry is okay.

Reality:

The real estate market is subject to fluctuation; it goes high and sometimes isn’t good. According to the statistics, the market is slow in quarter one and quarter 3 of the year. On the other hand, it is pretty high in quarter two and quarter 4. The real estate industry is like a battleship, where things can horribly go wrong or right slowly and steadily.

Myth # 6

Lots of money required to get started

Most people believe that only way to generate revenue on real estate, but it is not 100% true.

Reality:

Real estate is a diverse industry; you can start investing from a tiny amount. For instance, in Pakistan, a humble background can easily invest in plots in newly developed housing schemes. The RDA approved housing societies like Rose Valley offer affordable investment options in 5, 7, 10 Marla and 1 Kanal plots.

Please read our guide on ways to invest in Real estate

Myth # 7

House Flipping makes you rich, guaranteed

Most people think that traditional house flipping is always a profit-generating business in the property industry.

Reality:

Yes, it’s right that flipping a house makes good wealth, but it holds more risks and fewer returns. Secondly, it is like blocking your money for a long time on a property. You will have a hefty amount for the down payment and then for repairs and renovations.

After all the efforts, the property might stay in the market for months, or you have to wait to list it until market conditions are better for selling.
So the reality of real estate flipping is that you can make good wealth, but it is risky and takes longer than expected.

Myth # 8

Being a Landlord is a full-time job:

People popularly say that being a landlord is a full-time job. You will have to keep an eye on your property and tenants’ issues.

Reality:

Well, things are not as bad as they are pictured! Being a landlord is not a challenging duty. There are a few things/steps which should be followed to avoid any issues. For instance, start from renting a room, portion, and then the entire house. Most importantly, ensure that your rent agreement is mutually signed. Being a landlord is tricky initially, but things go smooth after a while.

That’s a wrap!

 Real estate is a profit-generating industry, without any doubt. But if someone thinks that anyone in any way can invest and get rich in one night, then they have to think again! As a real estate agent or property investor, you should have the know-how of the market, do some research and hire a real estate agent to be your guide. Tips, techniques and experience can generate revenue (no short-cuts can)!!

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