10 Real Estate Myths Debunked
10 Common Real Estate Myths Debunked
The real estate process makes everyone an expert by default. The seller, the buyer, family, friends, co-workers, and neighbors all know how real estate works. I mean, after all, the last time they sold or bought a home was 15 years ago and they believe nothing much changed. Real estate is often surrounded by false perceptions and many damaging assumptions. Here are 10 real estate myths debunked:
- All Real Estate Agents Are The Same
Real estate agents are not the same nor their approach to real estate. As in every profession or organization, there are those who are professional, devoted, organized, problem solvers, and committed to excellence, while others do the bare minimum to get by. Such as physicians and attorneys are better than others, so are real estate agents. Some are more responsive, creative and resourceful.
- Reality TV Shows
Reality TV shows about mega listings, celebrities, and prolific agents are not the norm in reality. These shows have brought to light the real estate industry but newer agents should understand that success comes from old-fashioned hard work, maintaining crazy hours, being punctual, and dealing with clients that are sometimes demanding.
- Real Estate Agents Get Rich Quickly
Most think real estate is a get rich profession, and they are highly disappointed when they discover that's not the case. Being a real estate agent means putting the needs of your clients before your needs and this sometimes means your income needs as well. It's challenging when entering the profession when you have not financially prepared to live off commission. No matter what the commission is, the brokerage take its portion.
- Flipping Houses Is How You Build Wealth
Flipping houses makes for good TV, but renting houses is how you build wealth. In most cases, flipping holds more risk and less return. The tenant pays your mortgage if the home wasn't purchased with cash. Remember slow and steady wins the race.
- Zillow Says
Zillow says, therefore it is. Zillow is not accurate. Zillow's Zestimate gives consumers a general idea of the value of a home which they call the "starting point." But it is not an exact valuation tool. Zillow can't tell a consumer the difference on why homes on one street may be different value wise versus the homes two streets over or why the last three sales sold in your neighborhood for the prices they did. Avoid the inaccurateness and reach out to your real estate agent for all of your inquiries.
- The Longer A Home Is On The Market, The More Negotiable
In fact, this may mean just the opposite. A home that sits on the market is most likely due to asking price, layout, location, condition of the home, or the seller may be unrealistic and not willing to negotiate.
- Multiple Price Reductions Mean The Seller Is Desperate To Sell
Price reductions are made to bring the property within current comparables. The price should be competitive or underprice to help generate more traffic and interest. Often when a seller has done several price reductions it means they are through with negotiations.
- Start With A Low Offer When Making An Offer On A Home
Just as sellers make mistakes with overpricing, buyers often make the mistake of wanting to start with a really low offer. There is nothing with negotiating, but if the home is priced within range, an unrealistic offer is going to alienate the seller and you may receive a very high counter or no counter at all.
- Open Houses Sell Houses
A common real estate myth is that an open house is a great way to sell a home. An open house can result in a sell, but it's not likely. The primary reason why a real estate agent holds open houses is for the opportunity to pick up new clients. There is great potential to convert the potential buyer into a client if they do not have a real estate agent.
- Selling A Home "For Sale By Owner" Saves Money
Many sellers who attempt to sell their home believes that selling homes are easy and that they will save tons of money. But in reality, FSBO's often end up losing money by not hiring a real estate agent. This could be due to several reasons such as overpricing, transaction mishandled, or not being able to negotiate the best price and terms for their home.
- Zillow Says
Zillow says, therefore it is. Zillow is not accurate. Zillow's Zestimate gives consumers a general idea of the value of a home which they call the "starting point." But it is not an exact valuation tool. Zillow can't tell a consumer the difference on why homes on one street may be different value wise versus the homes two streets over or why the last three sales sold in your neighborhood for the prices they did. Avoid the inaccurateness and reach out to your real estate agent for all of your inquiries.
- The Longer A Home Is On The Market, The More Negotiable
In fact, this may mean just the opposite. A home that sits on the market is most likely due to asking price, layout, location, condition of the home, or the seller may be unrealistic and not willing to negotiate.
- Multiple Price Reductions Mean The Seller Is Desperate To Sell
Price reductions are made to bring the property within current comparables. The price should be competitive or underprice to help generate more traffic and interest. Often when a seller has done several price reductions it means they are through with negotiations.
- Start With A Low Offer When Making An Offer On A Home
Just as sellers make mistakes with overpricing, buyers often make the mistake of wanting to start with a really low offer. There is nothing with negotiating, but if the home is priced within range, an unrealistic offer is going to alienate the seller and you may receive a very high counter or no counter at all.
- Open Houses Sell Houses
A common real estate myth is that an open house is a great way to sell a home. An open house can result in a sell, but it's not likely. The primary reason why a real estate agent holds open houses is for the opportunity to pick up new clients. There is great potential to convert the potential buyer into a client if they do not have a real estate agent.
- Selling A Home "For Sale By Owner" Saves Money
Many sellers who attempt to sell their home believes that selling homes are easy and that they will save tons of money. But in reality, FSBO's often end up losing money by not hiring a real estate agent. This could be due to several reasons such as overpricing, transaction mishandled, or not being able to negotiate the best price and terms for their home.
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