Thursday, January 19, 2017 / by Jenel Yeamans
Common myths of Real Estate
Myth #1: If I SELL my own home I will save tons of money!
Yeah sure, that sounds like a great idea, BUT that is not always the case. With the market changing everyday why wouldn’t you want to have a real estate professional help you? Selling a home FSBO (For Sale By Owner) is tricky. You don’t have access to all of the marketing tools that a real estate agent has. You probably don’t have all the information that you would need to be able to pull comps in your area and make sure that you have your home priced correctly (Jim’s house down the street sold for $X and my house is nicer DOES NOT count). SO what you thought you were saving by not paying a commission might end up costing you more in the long run if the house sits on the market for a long time and you end up reducing the price or even worse selling it below market value. Remember, you get what you pay for!
Myth #2: “If I don’t use an Agent I will get a better deal.”
AGAIN…bad idea! As a buyer you are not required to pay an agent’s commission…that is a cost that in almost all circumstances is paid by the seller. So don’t think that you NOT having representation is going to save you money! It’s the same cost for you either way…FREE!!! Having your own representation is very beneficial to you. You want someone that is in your corner. Someone that knows what to look for and is going to make sure that no corners are cut or something in the transaction is not handled properly. Would you walk into a court room and have the other person’s lawyer represent you as well in a huge life-impacting decision?? Then why do it when buying a house?? With that being said…there are a lot of agents out there. Feel free to conduct interviews, ask questions and don’t be afraid to say what is on your mind, and express what’s important to you in an agent. That is your right as a client. In this case, you get WAY more than what you pay for!
Myth #3: Overpricing your home.
Bad idea…for the following reasons: 1: In THIS market that is flooded with buyers and in a drought of inventory you actually want price it right on the mark, or maybe even under-price it to draw a multiple offer situation. You could miss out on a potential buyer. Had you not overpriced your home, that buyer would be taking a look at your place. 2: Yes, you can lower the price of your home but now your property has been sitting on the market for a while and has become stale and 3: (which goes hand in hand with #2) Now that your house has been sitting on the market for a while when potential buyers do take a look they wonder what is wrong with the house. Why has it been sitting for so long? Are there underlying problems? Pricing your house according to the market and not trying to be overly greedy/optimistic could actually save you money in the long run.
Myth #4: The market is going to keep going up
That is not always the case. The real estate market has ups and downs. Sometimes it is a seller’s market and Buyers’ are tripping over each other and you have multiple offers. Sometimes it is a Buyer’s market and it works opposite. There just aren’t many homes on the market so the Seller’s kinda rule the roost. The market changes every day. Don’t get caught up in the thought that the prices are going to keep going up, up and up. If you’re considering make a move, NOW is the right time, always. Contact your favorite agent (Nykole Larson & Associates Real Estate Group) and see what your home is worth right now.