Real Estate Myths BUSTED
Your best bet? Work with a REALTOR® and they'll make sure you're on track, every step of the way!
Posted: May 18, 2018 by Honor Rudd
This is the era of the YouTube tutorial, and we are all about some DIY! We can’t get enough of the fun décor ideas and party tips--but for every Pinterest win, there is a Pinterest fail. When it comes to real estate, that fail amounts to a lot more than an embarrassingly botched mason-jar project or a nightmarish batch of cupcakes.
In real estate, DIYing the sale of your home is called "FSBO" (for sale by owner) and the concept that you can make more money as a FSBO is one of the bigger myths about our industry. The transactional paperwork associated with selling a home can be pretty scary, especially when you consider the legal and financial ramifications of a mistake! Not to mention the fact that most FSBOs end up making less on the sale of their home. Listing with a REALTOR® really is your best bet all around.
We asked our agents to help us dispel some of the other myths they encounter regularly:
“'I need 10-20% down to buy a home.' NOT TRUE. There are still 100% loan programs out there for qualified applicants, as well as some with less than 10% down. Get a good REALTOR® to introduce you to a local lender that knows the products available and what best suits your situation.”
“The first step is not looking for a home, it’s getting approved for a loan.”
“One of the most common myths I have experienced is when making an offer you should always start low. Not true! The best way to approach a sales price is to have your agent pull similar comps in the area & arrive at a value together. Offering a seller fair market value for their home will ensure you will have a successful transaction. In a hot real estate market this is key, as other offers may come in on the same home. You want to make sure the seller knows you’re serious or you may be back on the hunt for another property. After all, wouldn’t you want to receive fair market value for your home if you were selling?”
“Buyers mistakenly think that calling the listing agent on a home will get them a better deal. I get calls like this all the time. The listing agent is working for the seller and the payment for both buyer’s and seller’s agent has already been stipulated in the listing agreement.”
“A lot of people think they will get a better deal if they work with a listing agent, but the listing agent is hired to represent the seller. If you have a buyer’s agent, you’re working with one person that really knows what you’re looking for, so they can help find the right home for you and represent your best interests every step of the way.”
“Myth: You’ll save money buying a home by not using a REALTOR®.
Truth: The seller has a signed contract with the listing agent and brokerage that states 6% commission will be paid. Just because you don’t use a REALTOR® doesn’t mean that the seller won’t still be paying the full commission. In North Carolina, the buyer’s agent is generally paid by the seller, so using a REALTOR® is basically free for you. You may as well take the extra protection and help that an agent can provide.”
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