The 5 Myths of Real Estate
Today I’d like to dispel a handful of beliefs that aren’t quite accurate!
1. Once Under Contract, a REALTOR’s Job is Complete.
Yeah, right… this couldn’t be further from the truth! That’s often times when the hardest work begins. Between opening escrow and ensuring all parties are on the same page from the start, navigating inspection periods, completing the appraisal phase, conducting/coordinating walk-throughs, staying on top of the lender, reviewing CCRs/HOA regulations & title committments and much more, there is plenty of work to be done to ensure the finish line is reached.
2. Selling to an iBuyer will Net me the same Proceeds as a Traditional Sale.
As I recently broke down in a video (below), this is not true. An investor / investment company is in business to make money… that profit has to come from somewhere and usually it’s the seller’s pocket. Pricing is typically less than full market value and then the “fees” plus repair credits add up to a whole lot of ‘extras’. That supposed “convenience” comes with a price tag attached.
3. Buying a New Home Without a REALTOR® Saves Money.
Nope, not happening… the builders would rather work directly with a buyer since they make more money that way. We are able to negotiate with the builders and from experience, know how best to do so. This often times results in THOUSANDS of extra incentives, reduced lot premium, upgrades or other things. Even better, the builder pays us so you don’t even pay for your representation; how sweet is that?
4. A REALTOR® should be Available 24/7/365.
Contrary to popular belief, REALTORS® have family, friends and a life outside of Real Estate. While I am available most of the time, there are some periods where I need to focus on other things. If I didn’t, then I wouldn’t be fresh and recharged to properly represent my clients. Confirming early in the working relationship what availability there is goes a long way to ensure expectations are met.
5. If I work Directly with the Listing Agent, I can get a Better Deal.
Not usually the case. Commission is most commonly paid by the Seller to the Listing Broker and then the Listing Broker offers a compensation piece to the Selling Broker (who represents the buyer). If you work directly with the listing agent and don’t have separate representation, then normally the listing broker will just keep it all. At the same time, they are not fighting for solely your best interests so it may end up costing you more in the end. Can a “Dual Agent” be a true neutral part of the transaction? Yes. However, not every REALTOR® knows how to do this.