Real Estate Myths

Common Real Estate Myths That Plague Buyers and Sellers

While there’s a prevailing belief that buying without a real estate agent will save you money, the truth is you’re almost always better off working with a pro. Buying or selling a house is not something most of us do every day. Despite the fact that most of us enter the world of real estate only rarely, we can easily assume we know how it works, based on the experiences of friends and family members, stories we have heard and things we have read. But for everything we believe we know about the industry, there are a number of myths that circulate about how real estate actually works. Buying into these myths can hurt your chances of buying or selling the right home at the right price.

Also, many people believe what they read on the Internet. Take everything you read on the Internet with a grain of salt. Also, be careful with advice you receive from family, friends and work colleagues. The danger with believing everything you hear or read can cost you money when it’s time to buy or sell a home. Here are three of the most common myths that can trip up buyers and sellers:

  • Set your home price higher than what you expect to get. In reality, listing your home at too high a price may actually net you a lower price. That’s because shoppers and their real estate agents often don’t even look at homes that are priced above market value. It’s true you can always lower the price if the house doesn’t receive any offers in the first few weeks but buyers are highly suspicious of houses that have sat on the market for more than three weeks.
  • You can get a better deal as a buyer if you don’t use a real estate agent. This is a completely false assumption since the seller pays your agent’s commission. If the house is listed with a real estate agent, the total sales commission is built into the price. If the buyers don’t have an agent, the seller’s agent will receive the entire commission.
  • You can save money selling your home yourself – otherwise know as FSBO’s (For Sale By Owners). The myth is you will save money on commission if you sell your home yourself. Although it’s not impossible to sell a home on your own, you’ll find that buyers expect a substantial discount when you do, so what you save on a real estate commission may end up meaning a lower sales price. According to the National Association of Realtors, the typical FSBO home sold for 15% less than for an agent-assisted home sale. The fact is you lose money if you try to sell it without the assistance and marketing expertise of a professional real estate agent.

 

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