As real estate agents, we hear plenty of real estate myths that we just can’t believe people think are true.

If you treat the process of buying or selling a home as a dark, mysterious experience full of distrust and secret traps, you are making it harder on yourself. Real estate is fun, and it’s our job to make the experience amazing for you.

So let us debunk those myths for you and tell you the truth about real estate.

 

Myth 1: Lower Commission = Better Profit

Many people believe that working with an agent with a low commission means they get more money from the sale of their home. However, a good real estate agent is worth what they are paid in commission. If you don’t sell your home for a good price, is it worth saving that 1%?

Take a look at what your realtor is doing and what they are really offering you. Are they providing a complex marketing package, or are they just putting up a sign and calling it a day?

 

Myth 2: You Get a Better Deal When You Just Use The Listing Agent

It’s not always in your best interest to call the listing agent directly. Many people think this can lead them to a better deal because the agent would be willing to cut a deal on their commission. However, in our experience, most real estate agents won’t do this.

Even if you find a real estate agent that will cut you a deal on their commission, there’s no proof that you got the great deal you were looking for. For example, you don’t know if you could have purchased the house for less had you been working with a buying agent who would have negotiated further.

Ultimately, you want to work with someone with your interests in mind. The listing agent represents the seller, while your buying agent represents you.

 

Myth 3: You Can Collect More Money Without Using an Agent At All

It is possible to sell a home privately, without a real estate agent, but this is an option you don’t want to do. For one thing, as we talked about above, you could get a better deal when you have an agent who can negotiate for you. Additionally, there are certain clauses and inclusions when it comes to the offer itself that you need to be aware of. Without a real estate agent, you could be overlooking these clauses.

So, while you may think you’re saving money on a real estate agent’s commission costs, at the end of the day it may not be worth the money you’re losing if you don’t get the best price for your home.

 

Myth 4: Overpricing Property Means Higher Offers and More Negotiations

We’ve had many clients over the years who believe that overpricing their home will lead to higher offers, and thus a higher selling price. However, overpricing your home can actually lead to a lower selling price than what it would have sold for if it were priced appropriately in the first place.

Buying agents often book house tours for their clients in multiples, which means your home could be the fourth stop on a tour. When you overprice your home, it’s being shown with other homes that are all listed at better prices, so it certainly won’t be the star of the tour. In fact, it could end up being the worst instead of the best of the day despite how amazing the house itself is. People aren’t even going to bother making an offer if they’ve already seen something better priced.

Most potential buyers will look at comparable homes in the market and choose something similar at a lower price. When they can see that other homes are going for less, why would they choose to pay more?

 

Myth 5: Go With the Agent That Promises to Sell Your Home For the Highest Price

It’s important to be realistic. A real estate agent that says they will sell your home for a high price is making a promise they probably can’t keep. Sure, they can list your home for the price you want, but if that price isn’t realistic for the current market, you won’t get any offers.

Instead, go with an agent that will get you the best value. A good real estate agent knows their local market inside and out and will have the best idea of what will actually sell. This helps ensure your home will sell in a timely manner.