Buying Article | Real Estate Myths: Part IIMore Than Articles

Real Estate Myths: Part II

Today I wanted to talk about five largely held misconceptions or real estate myths in the real estate world.

The first myth: I as a home seller can always drop my listing price. So why not just start high with the list price? Reality: the first six to eight weeks your home are on the market are truly the most important time. You could liken it to a "movie premier." During these first two months, buyers will be viewing your home. And know that these buyers will have seen a number of other comparable homes prior to yours. After seeing these homes and seeing what is for sale, the buyers come to know the market. If your home is overpriced, they will cross it off the list and move onto the next home. Even if a few months down the road the seller reduces their price, buyers have already in their mind moved on.

The second real estate myth: My agent I hired never showed my home! Reality: your agent you hire may not ever show your home. He or she however is ultimately responsible for marketing your home to other agents and buyers. Sometimes the agent you hire will be working with a buyer in your price range. However, it is very rare when the agent you hire has a buyer looking specifically for your type and price point of home.

The third real estate myth: if I go with a lower commission, I will save money. Reality: discount brokers across the country have historically brought a lower sale to list price percentage than a real estate broker who is full service. Allowing your listing agent some marketing dollars and commission structure to market your home is crucial.

The fourth real estate myth: if I buy a home without an agent, I will get a better deal! Reality: your buyer's agent can ensure that you are buying a home that is priced fairly. Don't cut corners! Hire an agent so he or she can do a market analysis and ensure the price you are paying for the home is in line with the market.

The fifth real estate myth: I can save lots of money by going with a lender off the internet. Reality: find a local banker in your market you can meet with. With all of the changes in financing options, it will be crucial to find someone locally you can trust, someone who will ensure that your loan will close when it is supposed to close.

About the Author

Ryan O'Neill is a licensed agent with RE/MAX Advantage Plus. As the founder of The Minnesota Real Estate Team, Ryan and the team help clients buy and sell Minneapolis Real Estate and Minneapolis Homes for Sale.

Author Profile: ryanoneill

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