Real Estate myths are extremely common, therefore the following will debunk the top 10 that have been floating about for quite some time now. The myths that are listed below are not in any specific order, they just happen to be misconstrued and commonly heard by the public at large.
Real Estate Myths
- Real Estate Agents are All the Same
This myth can easily cause both buyers and sellers to make substantial mistakes when selecting an agent to represent their specific interests. Every real estate agent in the industry has a different traits, experience levels as well as skills. There is also a substantial difference between agents that work with buyers and those that work with sellers.
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- Every Agents Makes a Great Deal of Money
A real estate agent that is successful is able to make a fairly nice yearly income. The amount of effort money and time that top agents need to put for is more significant that people fathom. Also, real estate agents do not make 6% commission on a home no matter what. There are a number of things that effect the commission percentage that is earned and one important factor that needs to be noted is that commissions are negotiable.
Real estate agents are also responsible for their own: advertising expenses, licensing, vehicle maintenance, fuel, health insurance and more. Factor all of that in, they are not “rolling in money”.
- Price to Leave Room for Negotiations
Pricing a home incorrectly can very well be the kiss of death. There are several pricing mistakes that are commonly made by sellers. The most common of the mistakes is pricing it higher in order to leave room for negotiations with potential buyers. This can lead to a great deal of frustrations and possibly lead to the home remaining dormant of the market for an extended period of time. Especially now with the information that is readily available via the internet, buyers are far more savvy than ever before. They will not waste their time even enquiring about a home that is overpriced.
- With a Listing Agent, You Will Get a Better Deal
The purchase of a home is a process that is quite complicated. This is why it is so very important that you enlist the service of a great real estate agent to represent your very best interests. Many believe the myth regarding a listing agent because they are seen as working with both sides. What is not recognized is the fact that the listing agent is still representing the seller. With that in mind, how very hard do you think that the listing agent will negotiate the pricing with the seller?
- Pre-Approval Happens After You Find a Home
Waiting until after a home has been found is a huge mistake for a number of reasons. A buyer should want to be approved for a mortgage before the hunt for homes begins. Searching for a home can be quite frustrating, exciting, time consuming and more. Therefore, eliminate the chance of disappointment by getting pre-approved for a mortgage amount and narrow your search around that amount.
- Open Houses Sell Homes
Only an estimate 2% of homes are sold via open houses.
- “For Sale by Owner” Saves A Lot of Money
Most that partake in this practice lose money. This is due to overpricing, transaction mishandling and poor negotiations.
- Agents Only Show Listing For Their Companies
Agents that belong to their local MLS and real estate board have access to multiple listings, not simply those under the umbrella of their respective companies.
- Agents Will Do and Say Anything to Make a Sale
Agents are held to a very strict code of ethics as well as rules and regulations. Should they break any of the rules and guidelines they risk loss of license and more.
- There is No Need to Prepare a Home for Sale
Proper preparation is the difference between a quick sale and the home lingering indefinitely on the market. It can also affect the final cost of the home when purchased.