Buying or Selling a Home? Don't Believe These Real Estate Myths!
Buying or selling a house is not something most of us do every day. Dabbling in the real estate market is something we do once a decade, and for many, it’s a once in a lifetime experience. We often base our knowledge of the real estate market on the experiences of friends and family members as well as stories we have heard and things we have read.
Unfortunately, there are many myths about buying and selling real estate that is poles apart from how real estate works. These tales are so widely spoken about that they are mistaken for reality and buying into them can severely hurt your chances of buying or selling the right home at the right price.
To ensure that you do not fall prey to these myths and are aware of the truth, we’ve debunked three of the most widely believed misconceptions about real estate.
Myth 1: Working directly with the listing agent will get the buyer a better deal.
This is one of the most commons myths that exist. Many people believe that with real estate listings published online, the buyer's agent’s role is irrelevant. By searching and researching independently, buyers going directly to the Listing Agent assume they can negotiate a better deal by cutting out the middleman – ‘The buyer's agent.'
However, the role of the buyer agent is not solely about accessing listings. They know the comps and the other agents so they can add an incredible amount of value through merely sharing their experience and knowledge.
A good agent has years of marketing and transaction experience in their head. The seller is going to pay commission, whether or not there's a buyer's agent. For the buyer, there's rarely any savings by going without an agent. Instead, the listing agent simply makes double the commission. There are no savings to the seller, either when the buyer doesn't have an agent. Also by having a listing agreement with the seller, the listing agent is looking out for the seller’s interests, not the buyers. By working with an agent (at no cost) the buyer gets an advisor/advocate working to represent their best interest.
Myth 2: The less commission you pay to sell, the more you make.
Discount brokers like to propel this myth. They claim to save sellers money by charging less. The truth is agents who are top producers and excel in this business do not discount services. Why? Because they don't have to.
Less than ‘full-service’ agents can't afford all the bells and whistles paid for by ‘full-service’ agents, who tend to draw higher offers. It boils down to you get what you pay for. A two percent commission reduction doesn't amount to much when your price is discounted by ten percent or more because your agent couldn't afford full marketing exposure.
Myth 3: Agents must show you homes on demand.
Unless you have a signed buyer agent contract, you can't call a local realtor and demand service or demand to be shown homes because agents don't work for free. If you aren't planning on writing an offer with that agent you call, be upfront or don't waste that agent's time. But don't expect that agent, who is likely to earn nothing to be too excited about jumping in the car. The agent is not obligated to show anything. Nor is the listing agent required to show you a listing if you are represented by another realtor without a request from that realtor.
Sam Valentini and Paula Carrascalao are dedicated to ensuring you get the best possible price irrespective of whether you are buying or selling. We treat our clients with the utmost respect and integrity. If you have any questions about what we do, we’d love to hear from you. Please contact us here.