The Top 10 Myths About Real Estate, Part 1

There are 10 major real estate myths you shouldn’t buy into, and here are the first five.

Here are five of the top 10 most common real estate myths floating around out there and the truth behind them:

1. The agent keeps all of the commission. I’ve heard this one many times over the years. As an agent myself, I wish it was true, but it’s not. When we list a home for one of our clients, our team typically spends thousands of dollars marketing and advertising it.

2. Agents typically charge a 6% commission rate. The truth is, there is no standard commission cost among agents. Some charge 6%, some charge more, and some charge less. What kind of commission rate an agent charges should reflect the value that they bring to you. If an agent can sell your home quickly and sell it for thousands of dollars more than the average agent can, they’ll probably be worth more and cost more.

3. Agents can get reimbursed for car-related expenses. When agents are out showing houses, they have to pay their own transportation expenses. However, some of these expenses can be deducted from their taxes.

4. Agents can be reimbursed for marketing expenses. Real estate companies, even the large ones like RE/MAX or Keller Williams, don’t dictate to their agents how they should market their homes. This is why, even at big-name brands, you’ll see both agents who are very successful and agents who aren’t. Because they don’t mandate any form of marketing, its up to the agent what they want to spend on marketing their homes.

5. A home either “passes” or “fails” an inspection. The purpose of a home inspection is to point out any issues that a home may have. Any home will have its share of deficiencies, and just because there are issues revealed in the inspection doesn’t mean it “passes” or “fails.” If anything, these deficiencies enable the buyer and seller to negotiate over the home’s condition and its price.

Stay tuned for the second part of this series, where we’ll delve into some myths that are more related to the real estate sales process.

In the meantime, if you have any questions or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.