We know you’ve probably heard them all but chances are, you weren’t sure if they were fact or fiction. The world of real estate is a mythical land where million dollar homes and hundred thousand dollar cars are everywhere. And, when your agent isn’t driving his Maserati, he’s riding a purple unicorn through a stream of Skittles. Can you taste the rainbow?
We hope you enjoy these seven real estate myths and the facts that stand between them.
1. All Real Estate Agents are the Same
This is like saying all cops are the same. This myth is so common that most would believe that it is fact. This myth can lead people into making big mistakes when selecting their real estate agent.
Agents have different levels of skill depending upon how long they’ve been in the business as well as different specialties. Some specialize in buyers, sellers, and/or investors. Some have more experience with luxury real estate, high-rise condominiums, or even land. It pays to interview your real estate agent.
2. Real Estate Agents Make a Ton of Money
If you are a successful real estate agent, there is certainly an opportunity to make a decent income; however, the amount of time, money, and effort that must be invested in order to do so is more significant than one would think.
This myth is often based upon the average commission a real estate agent makes on a sale but commission is negotiable. In addition, some agents have to pay hefty fees to their brokers, transaction fees, and processing fees that aren’t seen on the front end by the consumer. Sole agents incur many of the very same costs incurred by any other small business. Real estate is not for the light at heart and chances are, your agent isn’t making a ton of money.
3. When You Sell Your Home, Leave Room for Negotiations
This is a complete and total no-no. Pricing your home correctly to sell is of top importance. If you price your home too high, it may never sell. Also, price reductions do not reflect well amongst consumers. More often than not, it leads to more questions. Today’s buyers are educated due to the sheer amount of information available. If your real estate agent has an honest conversation with you regarding pricing your home to sell versus the actual value of your home, you have a good real estate agent.
4. Get a Better Deal When You Buy Directly from the Listing Agent
Probably not. The listing agent represents the seller in all negotiations. Who is representing you? A common real estate myth is that should you purchase the home directly from the listing agent because you, the buyer, will get a better deal. This is based upon the fact that the listing agent will cut their commission percentage because they are receiving both the buyer and seller sides of the transaction. Wrong.
Remember, the listing agent is representing the seller and has to represent their best interests in order to be ethical and fair. A buyer’s agent should represent you. This person will have your best interests at heart.
5. Save a lot of Money when You “For Sale by Owner” (FSBO)
Selling a home is no easy feat. Many sellers believe selling their home FSBO will save them a lot of money because selling is easy. Unfortunately, there is little truth inside this myth. Selling your home is not as easy as putting a sign in the front yard and listing it on the Multiple Listing Service or MLS. Often times, sellers lose money. They don’t know how to negotiate the best terms, they may have priced their home too high because they don’t have access to market knowledge, or the transaction was simply mishandled once it went under contract.
6. Real Estate Agents Will Say Anything to Make a Sale
Professional REALTORs® are held by a very strict code of ethics in addition to rules and regulations. Plus, many companies such as Keller Williams, have their own standard of ethics and beliefs in which their agents must abide.
Real estate is a referral business, a word of mouth business, a repeat business. If an agent isn’t abiding by this code, chances are they won’t be receiving any of the aforementioned business. Anyone who blatantly lies as a part of their business practice will not be a respected member of their community.
7. My Home Doesn’t Need to be Prepped for Sale
This real estate myth has cost homeowners thousands of dollars when it comes time to sell. Don’t sell your home before it’s ready. Your listing agent may make recommendations to you in order to make your home more appealing to the highest number of buyers; therefore, selling it more quickly and for more money. Staging transforms your home into a welcoming and attractive product that anyone might want to buy!
Hopefully, we have given you some insight into the mystical land of real estate! Although we didn’t spot a Maserati or a unicorn, it’s easy to see how and why these real estate myths might be true but most certainly are not.