Whether looking to buy or sell a house, entering the real estate market can be intimidating and riddled with misconceptions that can range from how real estate agents work, to how the entire process works whether buying or selling. What we want to do is help you navigate through the weeds and break down the myths of real estate so you can navigate the process confidently and easily.
How Real Estate Agents Are Paid
This topic seems to be the biggest misconception the public is confused on and the reason being is most people assume that their agent is getting the entire commission, or that they have a salary to fall back on and yes while that would be nice that is very far from the truth. The agents time and expenses are 100 percent on them, there is no reimbursement for the time and money they have expended, and as far as commission goes the seller is the one who pays their commission and then they split it between the two brokerages and the two agents.
All Agents Are Alike
All agents are not cut from the same cloth, so it is important to do your research and find someone who aligns with what you want, not only in a home price but in a community. Some agents specialize in a certain home price, community, or both and by narrowing down where you want to live and really doing your research on the type of community you’re looking for it will help you align with the right agent who will give you that personal touch that you wouldn’t get from just any agent.
It’s Better to Price a Home on The Higher Side
This is one of the most common misconceptions in real estate. As a seller you want to protect your asking price, so overpricing seems like a good way to protect against your house selling for too low right? Wrong, overpricing your home often leads to the home sitting on the market for a while, yes a buyer can always make an offer on an overpriced home but the problem with that is a buyer may not even look at a home in the first place if it is overpriced, let alone put an in an offer. If a home is priced competitively right from the start, your chances of optimal traffic and selling your home quickly increases.
Multiple Price Reductions Mean the Seller is Desperate to Sell
Just because a price is dropped does not mean that the seller is desperate to sell. Price reductions happen and happen often mostly to keep in line with other current listings and to be competitive. It can also help generate more traffic and interest but also sellers who have done multiple price reductions means they are through with negotiation.
Start Low When Making an Offer on a Home
Just as sellers want to overprice a house, buyers tend to want to start with a low offer in fear of not getting the best deal. There is nothing wrong with negotiating but an offer that is too low may turn the seller off and you run the risk of losing the house all together before the bidding war even begins. Take your time, talk to your agent, and above all else don’t react out of fear of losing the house because that’s when mistakes are made!