As buyers and sellers start their real estate process there are a myriad of myths that continue to loom and often lead to uniformed decisions by both buyers and sellers. Here are just a couple of the top myths.
One of the leading Buyer Myths is that if a broker has their name on a real estate listing, the buyer cannot use their real estate agent to represent them because it is not their listing. This is simply not the case. Buyers work with a specific agent in order to have their best interests represented. According to Florida law (ch 475) the only way that a buyer has ONLY their interests represented is to work with their own agent. Some buyers think a seller can save money on real estate commissions if there is no buyer’s agent involved with the transaction. In reality, sellers have usually negotiated to pay a total amount of commission, regardless of whether one or two agents are part of the process. If you don’t have a buyer’s agent representing you, it just means more commission for the listing agent. There can be exceptions, but in most cases, there’s nothing to be gained and a lot to be lost by not availing yourself of the expertise offered by a buyer’s agent.
Another Buyer Myth at the top of the list is “working with a lot of real estate agents will improve your chances of finding the right house” Some buyers call half a dozen real estate agents, thinking that the more agents they have, the better their chances will be in finding the right house at the right price. Firstly, real estate agents work from the same multiple listing service There is no “secret” list or inside track. You may get redundant information. Second, developing a close relationship with just one agent will allow that agent to more fully understand your real estate needs and wants. Finally, letting an agent spend hours of their time trying to find the perfect home for you only for you to end up purchasing through another agent is extremely frustrating and unfair to the agent that is giving you their all.
The top Seller Myth is the higher price that you list your home, the more money you are likely to get for it. Pricing a house for sale is one of the most important parts of a real estate sale. Some sellers think they’re building in extra negotiating room by overpricing their home, but this generally results in a negative impression from buyers. That impression will ultimately depress the perceived value of your property. Correcting the error of being overpriced can result in a lower sales price than would have been achieved if the house was reasonably priced from the start. Unfortunately, there are some agents out there that will tell Sellers whatever they want to hear in order to get the listing. This is a huge disservice to the home owner as only the current market dictates what your home will sell for. Beware of the Brokers/Agents that tell you what you want to hear. The Brokers that truly deserve your business are the ones that will tell you the true value of your home even though they know that it is not necessarily what you want to hear. They are the ones that are truly interested in helping you succeed in selling your home for the best attainable value.
Another Seller Myth that shows up often… Sellers should never take the first offer
Every once and a while, we put a house on the market and it gets an offer immediately. Even if that offer is a good one, sellers frequently start second-guessing themselves and are reluctant to take a contract that comes in quickly. We can’t tell you how many times we’ve seen a seller turn down that offer, only to find (six months later) that it was the one they should have taken. A fast offer for top-dollar doesn’t automatically mean you underpriced your home. You may have just been lucky to get someone who wanted a place exactly like yours, who was out there shopping right when you put it on the market.
One of the toughest Buyer’s Myths to explain why not to do it, is this one….. “ In today’s market, it’s always a good idea to first low-ball sellers”
Since we were in a buyer’s market for a long time, many buyers think “What the heck, let’s throw a lowball offer in there and see if we get lucky.” The market has changed! Inventory is low and we have now moved into a Seller’s market. If the offer you are making is a on a home that you are willing to walk away from, a low ball offer may be fine. However, if it is a home that you really want, low-balling the seller might poison your ability to ultimately do a deal. When the initial offer is unreasonably low, sellers frequently get their back up, and they can become significantly less willing when it comes to further price negotiations.
Purchasing or selling your home will be one of the largest and most important transactions of your life. Finding an honest real estate agent who is a serious professional is paramount. Find someone who takes pride in the industry and are sincerely dedicated to helping their clients achieve the dream of home ownership. In addition to being licensed by the state, these agents take continuing education classes and acquire designations that help them serve their clients and become better agents. The good ones love their job, and are always people who love people.
I pride myself on being one of the “good ones” If you are looking for someone who truly cares about helping you with one of the largest and most important transactions of your life, give me a call today!