Top Real Estate Myths Debunked

Myth # 1. All Real Estate Agents Are the Same.

Is a very simple and common real estate myth is that all real estate agents are the same.  This myth can lead to buyers and sellers making a big mistake when selecting real estate agents to represent their interests. Remember one thing every agent has a different ability, experience, skills, and different traits. Although a few photos and minimal listing descriptions may be adequate in the eyes of one agent, another agent can’t imagine presenting a listing that wasn’t properly prepped for sale with staging.

Myth # 2. It is all about location.

This real estate myth is so widespread that it is often referred to as a rule of real estate! Many in the industry will tell you that a house’s location is the first, and the most important, determining factor when it comes to the price and the desirability of the home.  In reality, though, this is giving geography a little too much credit.

Does location matter? Yes. In many cases, this might help get potential buyers to check out the property However, location is not the be-all and end-all of the industry.  Price is often what gets the deal done.

Myth # 3. Real estate agents get to set their own schedules.

Indeed, most real estate agents aren’t required to work your typical 9-5 hours, but this does not mean that they can “work whenever they want”. This also means that most agents put in several hours over the weekend. Ask any agent when they’re done with work and their answer will likely be “never”.

Myth # 4. When making an offer on a home, you need to start with a low offer.

Just as sellers make a classic mistake of overpricing, buyers often make the mistake of wanting to start with a really low offer. Although there is nothing wrong with negotiating, if the home is priced within range, an unrealistically low offer is only going to alienate the seller, and you won’t be taken seriously. Don’t be surprised if you receive a very slight counter or no counter offer at all.

Myth # 5. You get a better deal if you buy through the listing agent.

There are many reasons a real estate agent can refuse to accept a client. Obviously, those reasons do not include a refusal based on race, creed, religion, or any of the other protected classes. Along with many of my peers, I have fired clients for using offensive language, for asserting that I must not reveal fire damage to her roof trusses, and have refused to accept listings from sellers who wanted me to list their homes for thousands of dollars above where I ethically believed they should be priced. I know other agents who felt “creeped out” by buyers and refused to go into vacant homes with them. A real estate professional may choose whomever they want to represent. There is also a common belief that the listing agent will cut the commission if she has both sides of the transaction, but that is not necessarily true, and even if it is, it is the seller who would benefit from a reduced commission.

Myth # 6. Multiple price reductions mean the seller is desperate to sell.

 Price reductions are made to bring the property in line with current comparable, price it to be competitive, or underprice it to help generate more traffic and interest. Often when a seller has done several price reductions it means they are through with negotiation.

Myth # 7. The agent keeps all the commission.

First, the public needs to understand that commission is legally paid to the agent’s employing Brokerage Company, which in turn pays the agent. Depending on what side the agent is representing (buyer or seller), their brokerage will earn the listing or selling side commission unless the agent happens to be handling both sides of the transaction. No matter what the commission is, the amount paid to the agent is not the entire commission — the brokerage takes its portion (to be able to run the company to support its agents and keep the lights on), and then the agent gets his or her split.