Unfortunately, there are many real estate myths out there, from commissions to renovations. We understand that buying or selling a home is a big financial decision and we want to help “debunk” these myths to help alleviate some stress.
A home passes or fails inspection
This isn’t like an exam in high school where you either pass or fail. The point of an inspection is to asses the condition of the home, the good and the bad. The inspector will write up a summary after inspecting the home that reports on any issues the home has and the age of key systems, such as plumbing, electric, the roof, etc.
It is better to price a home on the high side as the seller can always come down
Wrong! In fact, pricing a home too high when first putting it on the market can hurt your chances of getting more than you would like. If you work with an agent they pull comparable homes to help gauge what other homes of similar features sold for. If buyers think it’s overpriced your house will sit on the market, people will wonder why it has been on so long and you will need to make a price adjustment.
All agents are the same
This could not be farther from the truth! The general process of a transaction, be it buying or selling, is the same, however, an agent’s approach, ability to negotiate and be flexible, their responsiveness, the resources they have and the preferred lenders and attorneys they work with make certain agents invaluable to the home buying or selling process. 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.
New Agents Don’t Have The Know-How
Being new to any field and not having specific experience in real estate does not mean you don’t have the “know-how.” As in any job, it’s the skills you are able to bring to the job and the continuing training that helps an agent succeed.
You Get A Better Deal When Buying a Home Through The Listing Agent
Many think this is the ideal situation but think again. While the listing agent needs to honest and fair to both parties they still need to represent the seller’s best interest. A listing agent will likely not negotiate the price down with the seller they’re representing just for a random buyer that they’re not representing. Buyer’s agents represent the buyer’s best interests.
Getting Pre-Approved Is Done After Finding Your Perfect Home
No, no, no, no, no! One of the biggest reasons you should get pre-approved BEFORE looking at houses is to help determine your price range. You don’t want to be wasting your time looking at houses you can’t afford. Wouldn’t you hate to fall in love with your dream home when you find out you can’t afford it? Another reason why obtaining a pre-approval before house hunting is important when it comes to a bidding war. In a multiple offer situation, someone who is pre-approved has a significant advantage over other offers that don’t.
Selling A Home “For Sale By Owner” Saves Lots of Money
FSBO’s will not save you money. There are many moving parts to selling a home, while we would like to think its as easy as putting a sign up and receiving an offer. Sellers could actually lose money because they don’t have the skills, knowledge or trusted vendors. Same with buyers considering buying a FSBO. Pricing on the home may be off-kilter with the rest of the comps in the market.
You should renovate your kitchen or bathroom before you sell
If your bath and kitchen look and work just fine there is no need to remodel it. If you feel as though it may not be updated enough you should adjust the price accordingly. Remember, everyone has their own taste and like to put their personal touches on a home.
The Less Commission You Pay to Sell, The More you Make
This could not be further from the truth. First off, you get what you pay for. Agents who lower their commission typically do not have the means or resources to sell your home properly. If you think of it this way, a discounted commission doesn’t mean anything if your price is 10% lower than you would have gotten by a realtor who actually knows what they are doing and has a higher commission.
Agents Get Kickbacks from Lenders / Title / Inspectors
It is against the 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.
Agents Will Say Anything to Make the Sale
It’s sad to think that some agents lie, but that is the unfortunate truth, however, top-producing agents who practice real estate honestly and are passionate about their career and reputation, do not! It is unfair to group all agents under the umbrellas of liars when not all are like that.