Common Real Estate Myths
In general terms a myth can be viewed and defined as “any invented story, idea, or concept.” Myths are born out of misbeliefs, bad information, misconceptions, and a lack of knowledge. Undoubtedly misbeliefs and bad information are a very dangerous combination. Here are some Common Real Estate Myths, in no specific order:
All real estate agents are the same
Possibly one of the most common real estate myths is that all real estate agents are the same. This myth has serious consequences as it can lead to buyers and sellers to making ill-informed decisions. This is more so when selecting a real estate agent to represent their interests. In truth each and every real estate agent posseses different skill sets, varying experience levels and diverse traits. It is important to realise and appreciate that there are major differences between real estate agents.
The property’s selling price is set by the seller
In as much as the home seller has the final say as to what level the house sells for, they do not have ultimate power to determine the selling price. Contrary to this home selling myth, a property’s actual selling price is determined by market conditions, the location of the property, and the property’s overall size!
The agent keeps all the commission
There is a huge misunderstanding that an agent will earn and keep commission in its entirety. However; commission due is legally paid to the agent’s parent brokerage company. The company in turn pays the agent. An agent will either represent the buyer or the seller and the brokerage will earn the listing or selling side commission. Regardless of the nature or magnitude of the commission, the actual amount due to the agent is not the entire commission. Bockerage companies will employ varying business models to determine the extent of the agent’s dues; their level of productivity will also come into question.
Small markets lack opportunities
It is a greatly held misconstrued notion that if you want to sell a home you need to be in a big city. Property investment in suburban and rural real estate is viewed as not being profitable and quite frankly a waste of time. Needless to say this is one of the greatest and most dangerous real estate myths. Holding this belief can keep investors out of some of the most profitable high-growth markets.
A home doesn’t need to be prepared for sale
There is a widely held myth that homes don’t need to be prepared for sale. This myth has the damaging potential to cost sellers lots of money.
Taking the time to adequately prepare a home for sale is important. This can be the difference between it selling in a relatively quick amount of time. The longer the property sits on the market the greater a negative stigma it will develop. It’s very important that you don’t list your home before it’s ready. It’s important to prepare your home for sell as today’s buyers are more often than not looking for a home that is in move-in condition.
Tip: Minor and basic preparations, such as;
- staging tips,
- general cleaning,
- minor improvements,
- pre-listing inspections,
can all help minimise time on the market while maximising the sale price.
Overpricing Will Help You Avoid Underselling
If ever there is a myth that is most likely to cost you clients, it is this one. The overall consensus is that you can avoid underselling on a property by overpricing the home. This could not be further from the truth. Overpricing in most instances will not bring buyers in to begin with.
Tip: Exercise integrity and be honest about the price of your house. Do this, and you can make the money you deserve.
The above real estate myths are too commonly thought of as truth, but in actuality they certainly are not.
