There are plenty of myths circulating about the real estate industry as well as real estate agents themselves. Some are perpetuated by misinformed agents too. We're debunking the top 7 myths about the real estate industry.
Myth #1: Agents Make Tons of Money
While most agents make a good income, they aren't becoming rich with no significant effort. They don't always receive a set percentage of the sale price of the home. Commissions are actually negotiable, and the percentage that the home sells for is actually split between both agents involved in the buying and selling of the home. The agent has to pay all their own expenses like health insurance and advertising expenses for their business. This leaves little for the agent out of their commission.
Myth #2: Price High for Negotiations
It's vital that your home is priced correctly. One of the biggest mistakes that a seller makes is pricing the home too high. Buyers won't visit a home that is out of their price range. They're also more savvy than ever before. Buyers do their research, and they'll be aware of your tactic to bring in higher offers. Always understand your buyer and price your home correctly.
Myth #3: Buy Through the Listing Agent for Savings
Some first-time buyers believe that they can save themselves money by using the listing agent as their own agent. They believe this cuts down on the amount of commission taken from the sale since they don't have to split the commission with another agent. While listing agents can certainly be trustworthy, they are actually working for the seller. You want an agent that is vested in what's best for you as the buyer. This is especially true if there are negotiations to be handled.
Myth #4: Find the Perfect Home then Learn About Financing
You should always learn about your financing options before you start your search for the perfect home. As a buyer, you'll want to have your pre-approval in place before the search because the entire process can be time-consuming. You're locking down your options before finding the home, which saves a lot of heartache when you find out later that you can't buy the home you love. When you have a pre-approval, you'll be more attractive to the seller in case there are multiple offers on a home that you adore.
Myth #5: Agents Should Mention Crime and School Information
This myth is definitely false. In fact, Federal Fair Housing laws don't allow the real estate agent to discriminate against classes that are protected by law. This means that the agent can't mention anything about school stats, ethnic mixes of the neighborhood or crime rates in the area. They can direct you to websites and other avenues that will tell you this information for research purposes.
Myth #6: Open Houses Sell Homes
Unfortunately, open houses do not always sell homes. Some studies show that less than 2 percent of homes are sold through an open house. It's not like you see on television where the agent holds an open house and immediately receive an offer. Most agents have an open house with the hope that they'll get new clients. Consider all the positive and negative sides of an open house before you decide to have one for your home.
Myth 7: For Sale by Owner Saves Money
Owners who want to sell the home themselves think they're saving all that money on commissions. In fact, they're often at a disadvantage that can cost them thousands of dollars. Real estate agents will know how to price the home to sell quickly, negotiate with buyers to get close to the seller's asking price and work with inspectors to ensure the home is in the best condition to sell.
How May I Contact You?
Thank you for taking the time to complete this questionnaire. I will be in touch with you.
ZOI OUZAS Sales Representative RE/MAX Garden City Realty Inc., Brokerage 64 Main Street West, Grimsby ON L3M 1R6 Office: (905)-945-0660 Office: (905)-563-8527 CONTACT ME
MLS®, REALTOR® and the associated logos are trademarks of The Canadian Real Estate Association Information Deemed Reliable But Not Guaranteed. RE/MAX Garden City Realty Inc. Brokerage Independently owned and operated