Real estate is a confusing world. While agents and brokers adore it enough to make a living out of it, outsiders just see the profession as a headache.
Like everything else, this business has its own prospects and consequences too.
In a profession, where everyone seems to seal the deals with his or her eyes closed, a lot of myths have got established like facts.
Owing to these false pieces of information, real estate has become no less than a nightmare for some people. If you are looking forward to doing a real estate transaction soon and are afraid because of something your neighbor or a distant relative told you, then you have stumbled upon the right article.
Here, we have exposed 12 real estate myths for you –
Real Estate Agents Are Paid A Salary
One of the greatest myths that people have is that real estate agents are paid hefty salaries for showing the property to potential customers, making any business related trips, organizing lavish broker events, making a countless number of phone calls or organizing any other marketing event.
The reality is that no salary is paid to anyone for this!
All the time, energy and money that the agent spends on you are his own. Each and every penny is paid from the agent’s own pocket.
…… Month-end doesn’t hug the estate agents with a fat salary.
An agent’s fuel, transportation and other such expenses are not reimbursed.
Real Estate Means Easy Money
Outsiders often feel that real estate is the perfect business for earning some quick bucks.
Seems like it is the biggest myth ever! The profession is not a walk in the park.
Nothing about it is as glamorous as it sounds. It is tough and demands as much time and energy as any other profession if not more. Add to it, the extra expenses incurred in the form of marketing events, showing plots around, the commission of the agents and many more.
It is not as alluring as it looks.
Agents Say Literally Anything To Seal The Deal
Yes, the world is a cruel place and some people can literally go to any extent to earn profit but bringing everyone under the same umbrella is not justified.
Some agents may lie to you but not all agents indulge in such malpractices.
There are honest people in the business who get you the right value for your money and show you the best deals. You just need to be careful about selecting the right agent.
Agents with a grand reputation and goodwill in the community are exceptionally careful with their client’s trust.
Multiple Reductions In The Price Show How Desperate The Seller Is
If a house for sale undergoes multiple price reductions, that doesn’t mean the seller is desperate to get rid of the house. Price reductions are just a way to bring the house on par with its competitors.
The seller may overprice it to negotiate later or underprice it to generate some traffic and interest.
Multiple Offers For A Property Gives The Seller An Undue Advantage
This one is more focused on the sellers rather than the buyers….
If as a seller, you play your cards wrong, the entire situation may backfire on you. Multiple offers may give you an advantage, but if you elevate the price by unimaginable margin then you may end up at a loss.
Your home may be a top-class piece of property, but it is not a must-have for anyone.
There are always other options available to the buyers.
The Process Is A Headache
Yeah, real estate deals can be a tough nut to crack, but that doesn’t necessarily mean that all deals would be a mental torture. Some deals can be smooth and easy while others can be a horrendous experience.
No one can comment objectively on this.
….. It varies from deal to deal.
Real Estate Agents Are Always Late For Appointments
This has to be one of the most common myths prevailing in the market.
No, real estate agents are not always late for appointments. Neither have they been given any authority to arrive as and when they please. All agents are not the same. If your agent is giving you a tough time, it is time to hire a new one.
The Longer A Home Has Been In The Market, The More Negotiable The Deal Is
The longer a home has been on the market, the more negotiable the deal is?
It may mean just the opposite. It just means the seller has not yet got any appropriate proposal and is not ready to settle for whatever-he-gets.
An awkward location or an improper design may be the other reasons.
When Buying A Piece You Need To Start With An Exceptionally Low Offer
It is good to negotiate a bit, but you must pay the seller a deserved price for the property.
Making an exceptionally low offer can make you look like a non-serious buyer who is just there to spend a Sunday afternoon.
A Home Does Not Need To Be Prepared Before Selling
It is a misconception that if you have put a house on sale, it doesn’t need any maintenance and it has already become a responsibility of the buyer.
A well-maintained house will not only fetch you a quick proposal but also a better price.
Most of the potential buyers are looking forward to buying ready to move in houses and if your taps are still leaky, or garage doors are still creaky it may shoo away some of the potential buyers
The Standard Commission is 7 Percent, Right?
The standard commission can’t be decided as such. It depends on the brokerage firm and varies from agent to agent. Also, the agent doesn’t keep the whole of the commission. The amount is split by a formula between the brokerage and the agent. Other expenses incurred during the process are also sometimes settled. So, yeah – the agent’s share can be 7 percent, it can be more or it can be lesser than this. 7 percent is not a standard.
The Agents Sell Their Own Homes At Better Rates
The selling price of a property does not depend on who owns that piece of property.
Whether the owner is a real estate agent or an advocate, the worth of the house is determined by its location, construction and architecture – not the profession of the owner.
So it doesn’t mean that if an agent has put up a real estate sign he’s in for a huge profit.
These were some of the most common myths about real estate and real estate agents. Apart from these, there are many other common myths floating in the market.
For instance, some people say that the agents should tell you about the social environment of the neighborhood you are buying a house in.
However, the fact is that Federal Fair Housing laws prevent agents from indulging in any such activity. They are not supposed to inform you about the crime rate or school statistics of the area.
It is completely at your discretion.