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REAL ESTATE MYTHS

1. Pricing a home so there is room for negotiation

Sellers often believe that overpricing a home is beneficial, because it leaves room for negotiation. This is one of the greatest real estate myths, because an overpriced house generally deters buyers from seeing it altogether. By limiting the amount of people who see the property, we limit the amount of interest in it and offers placed on it. People who overprice usually end up with less than the people who priced correctly, because they are forced to settle for the lower offer. Those who priced correctly usually end up getting more than they had originally asked for, because the great interest in the property creates room for negotiation.

2. A home doesn’t need to be prepared for sale

People generally believe that all houses that go on the market sell. They think there is no need to prepare the house for sale, because it will sell regardless. This is a great myth, because most houses that go on the market actually don’t sell, which means it’s extremely important to prepare the house, so the chance of it selling increases. This doesn’t mean that big renovations are necessary. Simply doing little things like cleaning, painting and taking staging tips, help immensely in getting the house ready for sale.

Home-Prepared-For-Sale

3. The less commission you pay, the more you make

Discount agencies like to propel the myth that sellers earn more and save if they pay less on commission. This is not the case if the seller works with a good agent who is able to price properly, negotiate well, handle transaction effectively and draw high offers. By investing in a real estate professional, you increase the chance of selling your property at the best possible price and thus increase your chance of earning the most amount of money.

4. Getting pre-approved should be done after finding a home

Getting-Pre-Approved

Another real estate myth is that pre-approval happens after someone has found a home they are interested in buying. Getting pre-approved should be something the buyers do before finding a house, to avoid the disappointment of not being able to afford the perfect house and in general to save time not looking at homes they cannot afford to buy.

5. All real estate agents make a lot of money

Another real estate myth is that all agents make a lot of money. This is absolutely not true, because “an average agent’s salary is around $36,000” and about half of the agents “only close four deals per year”. There are agents who earn a nice income and are able to put significant amount of time, effort and money into their business, but it’s certainly not the majority of them but a minority who are able to do so.

6. All real estate agents are the same

Another common myth people believe is that all real estate agents are the same. This is not true because all agents have different skills sets, personalities, experience, traits and expertise which effect how they run their business and determine what type of an agent they are. Believing that all agents are the same often leads to people settling on the first agent they meet or talk to, as opposed to them searching for an agent who would satisfy their needs and suit them the most.

Real-Estate-Agents

7. Agents will say anything to make a sale

Although there are agents out there who would say anything to make a sale and would try to convince their clients to buy, it’s not fair to say that all agents operate this way. Many agents do want a client agent relationship that is based on honesty, integrity and who want the best for their clients and not take advantage of them. That’s why it’s important to interview an agent to see if they meet your standards, before simply settling.

8. Area experts will sell a house faster

People often believe that area experts will be able to sell a house faster and for a better price than non-area experts, because they will be able to draw attention to the neighborhood they know so well.

I believe this is a misconception, especially in today’s world, because all agents are capable of educating themselves and becoming the experts of any given area.

If the effort is put in, non-area experts should be able to yield exact same results as the area experts.

Area-Experts

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