Busted! Don’t Believe These Myths About Real Estate!
For a home buyer or seller, the ultimate goal is to quickly close the deal and get the best value for their money. To speed up the process and cut down their costs, many tend to consult within the family or with people in their social circles who have purchased a house. Unfortunately, these people tend to lack the right market knowledge about real estate and may even add biased opinions or incorrect details to the information they share. As a result, the buyer or seller is influenced by misconceptions that cause them to choose the wrong realtor or worse, no realtor at all!
To ensure you don’t end up with the improper representation in the real estate market on account of misconceptions from non-experts, York National Realty Inc. has debunked some of the most widely believed myths about real estate.
Myth 1: ‘For Sale By Owner’ approach saves a lot of money.
The main reason sellers believe that selling their home “for sale by owner” (FSBO) is a good idea is because it will save them a lot of money. Unfortunately, this is a common real estate myth.
Many sellers who attempt to sell their home “for sale by owner” (FSBO) believe that selling homes is as simple as putting a for-sale sign in the front yard, enlisting on a multiple listing service (MLS), and watching it sell. This again is untrue.
FSBO’s often end up losing money by not hiring a professional real estate agent. It could be due to several different reasons. For example, did the FSBO overprice their home, and it didn’t sell for six months? Was the transaction mishandled ending up in a buyer being declined after three months under contract? Did the FSBO not know how to negotiate the best price and terms for their home?
Myth 2: You get a better deal when buying a home through a listing agent.
Buying a home can be a complicated process, especially for a first time home buyer. It’s imperative that when buying a home, you have a great real estate agent representing your best interests. However, a typical real estate myth is that when purchasing a home, using the listing agent will result in a better deal on the house. This myth originates from the presumption that the listing agent will cut their commission percentage because they are receiving a commission from both sides of the transaction (that is, the buyer and the seller).
Sounds like an ideal scenario for a buyer, right? Wrong. What a buyer may not understand is that the listing agent is also still representing the seller. While they do need to be honest, fair, and ethical to all parties and certainly there are real estate professionals out there who can be trusted to represent both parties, it needs to be understood that the listing agent still has to represent the sellers’ best interest as well.
If you use a listing agent to buy a home, consider how difficult the listing agent is going to find it to negotiate the price with the seller, who also happens to be their client. Same goes for any negotiations from the home inspection findings. It’s still possible to use a listing agent to get a better deal, however, the biggest consideration that needs to be taken into account is the representation that will be received.
Myth 3: I should list my home with the number one agent in town.
You see their banners all over town, and their faces adorn billboards and flyers, the “number one agent in town” has so many listings. They must be the best realtor, right? No! An agent who spends a fortune on advertising isn’t necessarily the best. As a matter of fact, some high-profile agents sell less than half of all the properties they list. An extremely busy agent may have less time to devote to each listing, focusing on quantity rather than quality. As a result, it’s best to do your homework and hire a real estate agent with results to show for their work.
If you’re looking to steer clear of these and other real estate myths and get the best services, reach out to York National Realty Inc. As client-oriented realtors, in Aurora, Ontario, we have a team of real estate representatives who provide excellent real estate services for buying or selling real estate properties, investment properties, estate homes, and luxury homes across Newmarket, Innisfil, Barrie, King, Aurora, Bradford, Sharon, and Holland Landing. We have been affiliated with several awards in the Aurora and Ontario for our services and strive to keep providing satisfactory solutions to our clients.