When you have been in Real Estate as long as I have, you get to the point when you have basically heard it all. There are some outlandish beliefs about homes, the market, and agents out there. Here are five hilarious phrases I have heard from buyers and sellers about Real Estate!
“I Don’t Need A Listing Agent! I Can Sell My Own House”
So many sellers think that they can list their home “For Sale By Owner” or FSBO and that will save them a ton of money. They think they can list their home on the Multiple Listing Service, or MLS, put a sign in the yard, and the buyers will simply line up to place their offers. Unfortunately this method will most likely not work out well for the seller. There are so many things that could go wrong when a seller lists their own home. The first potential problem could be the listing price because people often don’t know the true value of their home, and are not usually up to date on the local market conditions. An overpriced home would cause the home to sit on the market for months with no offers. A real estate agent will have the experience and knowledge about local market conditions to properly price a home so it can sell quickly. Also, marketing a home is a full time job; simply putting a sign on the lawn will not sell a home. These days so many people are technologically savvy, and spend the majority of their free time online. A good real estate agent will have the skills to properly market your home, through all of the channels, to make sure that the listing is being made available to as many potential buyers as possible. Another potential disaster is what the result is when the home does get an offer and ends up under contract but the paperwork is handled incorrectly. One missed check mark on a contract…one failure to disclose…and the seller will have opened themselves up to potentially getting sued or having an invalid contract. Having a real estate agent who has filled out multiple contracts and knows exactly what must be disclosed, boosts the seller’s security and takes the stress off of their shoulders.
Also, marketing a home is a full time job; simply putting a sign on the lawn will not sell a home. These days so many people are technologically savvy, and spend the majority of their free time online. A good real estate agent will have the skills to properly market your home, through all of the channels, to make sure that the listing is being made available to as many potential buyers as possible. Another potential disaster is what the result is when the home does get an offer and ends up under contract but the paperwork is handled incorrectly. One missed check mark on a contract…one failure to disclose…and the seller will have opened themselves up to potentially getting sued or having an invalid contract. Having a real estate agent who has filled out multiple contracts and knows exactly what must be disclosed, boosts the seller’s security and takes the stress off of their shoulders.
“One Agent Is Just As Good As Another”
HA! This is one of the funnier phrases that I hear a lot! Real Estate Agents are like Easter eggs…each one is different! If a buyer or seller chooses an agent that is not from their area, then they will not have the same advantage as someone who picks a local real estate agent. The reason for this is because the real estate agent will not be up to date on local market conditions, they won’t know how the local terrain could affect the home, and they won’t know their way around. Also, if a seller chooses an agent who is not from their area, then how will that agent know how to properly market their home, and where to find buyers who would want to live in that area? Another factor is the agent’s marketing strategy. Some agents are not up to date using the latest technology, and that can severely harm a seller’s chance at selling their home for top dollar. A good real estate agent in today’s market will be all over the internet, they will be on page 1 of Google, they will be using videos to market themselves and their listings, and they will have a strong email database that they can send out information to. Many of the agents out there today have not grown and adapted to new technology. However, whether it is a buyer or seller, they deserve to have an agent that is up to date and online!
“I Can’t Afford To Buy A Home Right Now”
This is a pretty common misconception among potential buyers but the truth is that many of the people that use this statement would, in fact, qualify to buy a home. In today’s market interest rates on loans are at an all time low and the cost of renting a home is increasing. Some people’s rent is higher than the average mortgage payment! This is the perfect time to buy. Also, many buyers don’t know about all of the programs out there that are available to help you buy a home. For instance, if the buyer has served in the military they may be eligible for a VA loan, and if the buyer is low income they may be eligible for an FHA loan. There are all sorts of programs available to help buyers purchase homes.
“If I List My Home For A Little More, Then Lower Offers Won’t Be A Big Deal”
Sellers often believe that if they list their home at an inflated rate, then they will have some wiggle room for negotiations, as well as feeling secure accepting an offer that is under the asking price. This sounds like it would make sense, but the truth is that listing your home for more than it is worth can be the kiss of death for your home. Most of the homes listed for more than they are worth end up sitting on the market with no offers, and then getting stale. Once a property is stale, no amount of marketing or price reductions will help bring it back to its former glory. The best thing to do is to take it off the market and wait awhile before you put it back on, and then when you do re-list it, make sure that you have an accurate price. To avoid this mistake it would be wise to contact a listing agent and have a comparative market analysis done on your home, so that the buyer will have a good idea of what it the home is worth before they list it. Once the seller has done a CMA, it is important for them to list the house within the suggested price range that the agent has provided to avoid ending up with a stale listing.
“Selling Real Estate Is Easy! You Just Show A Couple Homes And Make A Ton Of Money In Commission!”
“Selling Real Estate Is Easy! You Just Show A Couple Homes And Make A Ton Of Money In Commission!”
This one is perhaps the one I hear most often when I hear people describing real estate agents, and it is so far from the truth. Real estate agents work really hard, and often they don’t make nearly as much as buyers and sellers may think they do for the time, effort, and attention to detail that they provide. They market listings, send out market updates, keep potential buyers informed on what is newly listed, negotiate for buyers and sellers, open escrow, put together disclosure packages, schedule inspections, act as a liaison between buyer/seller and title, keep detailed records of every document signed and email sent, coordinate with the lender, inspectors, and appraisers, and oversee the entire transaction from start to finish. Also, due to the fact that agents work on commission only, it is important to consider that they don’t get paid monthly or bi-weekly in a paycheck…the money they make must be spread out over time until their next transaction closes. Once you factor in high taxes and large overhead in order to pay for their marketing, office supplies, rents, etc, in the end the average agent doesn’t make as much money as most people asssume.
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