Whether you’re a real estate rookie or have years of experience, there are a lot of real estate myths out there to be aware of. Let’s bust some common ones!
Myth #5: It is better to price your home on the high side as a seller can always come down. This is wrong – pricing a home too high when first putting it on the market can hurt your chances of getting more than what you would like if you work with an agent. An agent will analyze comparable homes to gauge what those with similar features have sold for to optimally price your home to sell. If buyers think your home is overpriced, it will likely sit on the market, people will wonder why it hasn’t sold, and you will probably need to make a price adjustment.
Myth #6: All agents are the same. This could not be further from the truth. The transactional process of buying or selling is relatively the same; however, an agent’s approach, ability to negotiate, responsiveness, the resources they have, and their preferred lenders and attorneys make certain agents invaluable to the home buying and selling process. Plus, when an agent is notably pleasant to work with, other agents prefer to work with them as well, giving them a better chance of getting the deal done smoothly.
Myth #7: New agents don’t have the know-how. Being new to any field and not having specific experience does not mean you aren’t able to do your job effectively. It’s the skills you’re able to bring to the table and continued training that helps an agent succeed in helping his/her clients.
Myth #8: The less commission you pay when selling, the more money you make. This is simply not the case. Firstly, you get what you pay for. Agents who lower their commission typically do not have the means or the resources to sell your home properly. If you think of it this way, a discounted commission does not mean anything if your home sells for 10% lower than you would have gotten by a realtor who actually knows what they’re doing at a higher commission rate.
Myth #9: Agents get kickbacks from lenders, title companies, and inspectors. This is against RESPA, the Real Estate Settlement Procedures Act law, for real estate agents to receive any kind of kickback or favors from the vendors they use.
Enjoyed this article? Check out Real Estate Myths Part 1.
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