Real Estate Myths Debunked

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Real Estate

When you hear the word ‘myth,’ there’s a good chance that your mind goes straight to a made-up story or idea. Many times, myths are nothing more than just that, a made-up concept that someone shared, and from there, the idea only grew.

In real estate, there are a lot of myths that we, as agents, hear regularly. Many of them are very common and can easily be explained. If you’re just getting into the real estate market, there’s a good chance you’ve already hard some of these fairy tales. Before you get too far into the process, here are five of the most common myths that you should forget.

Real Estate Myth #1: All real estate agents are the same, so it doesn’t matter who I work with.

While it is true that every real estate agent has certain rules and regulations to abide by, and they all have the same goal of helping you buy or sell a home, not all agents are the same. Every agent has a different skill set, experience, and understanding of different communities.

When it comes to selecting a Celina real estate agent, you’ll want to ensure that the agent you select knows the community. Someone who lives in Dallas or Fort Worth isn’t going to understand what makes Celina, TX, a great place to raise a family.

Real Estate Myth #2: It’s better to overprice my home and leave room for negotiation.

When it comes to selling a home, the worst thing you can do is incorrectly price it. Your house is going to receive more exposure during the first two weeks that it’s on the market than at any other time. If you overprice the home, potential homebuyers will be turned off, and soon you’ll find your house sitting without any showing appointments.

Your most important role as a seller is to understand what today’s buyers are looking for and to trust your agent when they discuss the listing price. Remember, it’s not you or your agent that truly decides what a home sells for, it’s the buyer.

Real Estate Myth #3: I can save money by working with the listing agent.

Buying a home is already complicated enough; that’s why it’s so important to work with an agent who is going to help you through the entire process. While you may think it’s easier to work directly with the listing agent, you need to understand that the listing agent isn’t going to have your best interest at heart.

As a real estate agent, my fiduciary duty is to my client. The listing agent has a contract with the homeowner—not you, the buyer. Their number one focus is getting the seller the best deal possible—not you. While the real estate agent needs to be honest and ethical to all parties involved, they’re unable to negotiate on your behalf.

While an agent can work for both the buyer and the seller, it’s recommended that a conversation take place first to ensure both parties receive the right representation.

Real Estate Myth #4: If I sell my house myself, I’ll net more money.

The main reason homeowners decide to list their home themselves, or what’s known as ‘for sale by owner’ (FBSO), is because they believe they’ll net more money at the close. What homeowners don’t typically take into consideration is everything that goes into getting a home sold.

Unlike real estate agents, when a seller goes the FSBO route, they do not have access to local market reports to help them decide on the proper list price. They also do not have the tools needed to syndicate properties or reach buyers on the internet the same way that real estate agents do.

The truth is, while many homeowners decide to sell their homes on their own, they find themselves netting less money, and their home sits longer than homes of people who sell with an agent.

Real Estate Myth #5: I don’t need to be pre-approved before touring houses.

After weeks of searching, you find a beautiful home that you want to make an offer on. You and your agent work hard to craft the perfect offer, and it’s accepted. Everything is going according to plan until…

You find that the home is priced over the amount the bank is willing to lend you.

Not only are you not going to get the house, but now you have to start the entire process of looking for a home over again, and we both know that nothing will compare to the beauty you’re walking away from.

The allure of looking at homes that are over-budget is the number one reason all consumers should get pre-approved before looking at houses. Knowing how much the bank is willing to lend you will keep you from falling in love with a house or neighborhood that you can’t afford.

No matter what anyone tells you, always remember that the first step in buying a home is getting a pre-approval letter.