Everyone likes to believe they know something about real estate. Sometimes it’s the buyer, sometimes the seller. At times, it’s their friends or coworkers. They sold or bought their home five years ago and have gone through all of the trials and tribulations of the real estate process. But the truth is, they likely only think they know what they’re talking about. Just like most industries, real estate is constantly changing, even if it’s only been five years. Because of this, there are dozens of real estate myths in the rotation that need to be debunked. Here are a few of the most popular.
Realtors Are Paid A Salary
You’d be surprised how common of a misconception this is. While there definitely is a salary that exists in order to keep agents afloat and help them afford to be as professional as they are, that isn’t enough for them to survive on. The truth is that real estate agents work on their own free time, and a lot of the expenses that go into their job are ultimately on them. If an agent wants to bring their client out for a nice lunch to discuss, the agent typically pays out of their own pocket, not real estate companies. The bulk of the money an agent makes is typically based off of how many houses they sell, and the price of the houses they sell. Even then, their commission partly goes back to the real estate company so they don’t get to keep it all.
You Save Money Selling Your Home Yourself
People tend to think that by cutting an agent out of the equation, they’ll ultimately be saving money by doing a For Sale By Owner. While this can actually happen, it’s extremely unlikely you’ll end up saving money in the end. Numbers published in 2017 by the National Association Of Realtors actually show that FSBO homes sold for $200,000 compared to the $265,000 for homes sold by realtors. While it’s true that you’d likely save money by not having to pay a real estate agent, in the end, you likely won’t get sell the house for the same amount you would if you were to hire one.
It’s Best To Price On The High Side
Many sellers want to do their best to protect their asking price when trying to sell their home, and rightfully so. Because of this, many will assume that by pricing high, you’re more likely to make a sale and then if you really have to you can lower the price. This is absolutely not true. In reality, your house will likely sit and not have many interested parties. You’ll want to price the home competitively from the get-go, as that will raise your chances of finding a buyer faster