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10 Real Estate Myths

10 Real Estate MythsEvery business has its own collection of myths and stories. The real estate market is not an exception to this.

But can you trust all the hearsay?

Here are 10 popular real estate myths and why you shouldn’t believe them:

Real estate agent vs. Internet

Many people think that since they have internet, they don’t need a real estate agent. While it’s true that you can find anything on the internet, you can only go so far with the information.

While you can negotiate online, the best prices and deals would still come from a smart agent.

Higher price, more money

For sellers, they think that starting with a very high price for their house offers room for negotiations. But this would only give a negative impression to buyers and agents alike.

The end product? Your house will greatly depreciate its value.

Never take first offers

Most people do double takes and hesitations when they get a good first offer. Some of them decide to wait, only to find that the offer has changed already, or the house has been bought by another.

It’s good that you want to think about your choice thoroughly. But, remember: competition is tough in the market.

Collect and Select

Many people think that if they talk to a lot of agents, they would find the best deal and the best house. In the first place, agents work on 100% commission, so if you’re not planning to buy from the agent you’re engaging, you might want to rethink about wasting their time.

Plus, if you develop a close relationship with a particular agent, it would be better for him to figure out your needs and find you that perfect house.

Agents should spill everything

People expect agents to tell them everything about the people and the environment of the house they’re eyeing.

While correct information is required from these agents, Federal Fair Housing laws prevent them from discriminating against any neighborhood. This includes divulging crime rates, school statistics or ethnic mixes of the population.

Agents get kickbacks

This is a common misconception. Some people think that since agents recommend inspectors and lenders, they get some sort of commission for their recommendation.

However, there is such a thing as RESPA, or Real Estate Settlement Procedures Act. This prevents agents from getting kickbacks or favors from vendors or anyone else they conduct business with.

The less commission, the more you make

Discount brokers claim to save sellers money by charging less. But the truth is agents don’t need to give discounts. A 2% commission reduction doesn’t really have much effect when your price is discounted 10% or more.

The more you pay, the more an agent makes

This is widespread misunderstanding. Even on a spread of $10,000, the agent doesn’t get much of a difference in commission, so why would he bother?

Waiting until the tides turn

There is never a bad time or a good time to buy or sell. And you can’t wait until the tides turn. The market is unstable and prices are constantly fluctuating.

If you find a good deal now, you don’t have to wait for the better deal. You might end up waiting forever.

The dream house

Lastly, people tend to spend so much time finding the perfect house with the perfect community. But there will always be something off, whether it’s the lot, the lawn or the house itself.

As long as it’s within your budget, it’s practical and good enough, and then it will do. Again, don’t take too long in deciding, because great opportunities only come once.