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Myths of Real Estate- Uncovered

Posted By: Leah Ortega In: Real Estate Myths
Date: Wed, Sep 7th 2016 11:54 am

It's cheaper to sell my house by myself, I'll get more money. All agents are the same. All real estate agents make a lot of money.

Do these phrases sound familiar to you when you think of real estate? Truth is, many people are unaware of some myths of real estate, but don't worry, I'm here to uncover some of those facts.

First, all real estate agents are NOT created equal! What do I mean by such a statement? Well, there are many avenues of real estate, land deal, buyers agents, sellers agents, commercial, trusts, etc.. A new agent that has only assisted with the purchase of two homes, is not as seasoned as an agent that has 26 sales, 36 buys, 7 land deals in 4 counties with 15 years of experience. That does not mean that a new agent is not qualified! There are also agents that have been practicing real estate for decades and have never taken one advanced course where as a 2 year old agent has taken every advanced course possible, and is abreast of all possible outlets of the real estate market. Point is, don't discount an agent, if you are concerned about their qualifications, ask!

Secondly, let's discuss this huge commission real estate agents make! Most people think that an agent sells your house and makes tons of money. Well, that's FALSE! When you sell your home, typically there is a built in 6% commission. 3% to the seller's agent, and 3% to the buyers agent. All forces of the universe willing, hopefully this wasn't a referral, because there goes another sometimes 25% of that 3% that an agent gets. On top of that, agents work for a broker in charge and they pay those brokers a commission split, usually anywhere from 10-40%. That 3% is looking awfully small now, right? The biggest misconception of commission is, people don't realize it's NEGOTIABLE! Some sellers will only agree to a total of 4% or 5% and that makes things tough. 

Selling a home "for sale by owner" saves a lot of money. F-A-L-S-E!!! The biggest misconception here is homeowners believe selling their home themselves will be 'easy'. More often than not, for sale by owners will end up actually loosing money by not hiring a real estate agent to handle the sale. Here are the biggest reasons why: homeowners want the biggest dollar amount, but regardless, the house has to appraise! Without an agent, your home also won't get listed into the MLS database that every agent has access to. If overpriced it may sit for months and months, transactions could be misrepresented ending up in very expensive law suits, and most important, does the homeowner know how to negotiate real estate terms? It's truly not as easy as one may think, hire the agent, negotiate the price and get that house sold! Days on the market in Charleston in June and July was 18 days!!!

In summary, there are so many negative myths about real estate and most agents genuinely want to negotiate the best price for you! Many agents would be glad to sit down with prospective clients to assess their needs and answer and questions you have. Just because you call on an agent for advise doesn't mean you are under a contract, most of us are exceptionally friendly!

Leah Ortega

843.718.6550

Southern Charm Realty