Three Common Real Estate Myths: Debunked!

Myth # 1: Always start with your lowest offer.

There’s not one generalized set of instructions for making an offer on a home anywhere. Sellers have the ability to overprice or underprice homes on purpose. Some markets are also more competitive than others. The old saying “never offer the full asking price”, may have worked in previous times, but times are changing, and so are methods for making offers on homes.

Myth # 2: You can get a better deal (as a buyer) if you don’t go through a real estate agent.

This is a completely false premise. If the house is listed with a real estate agent, the total sales commission is already in the price. As a buyer, if you don’t use an agent, the seller’s agent receives the entirety of the commission. If you list the house on your own, you would need to possess the skilss to get the home listed online first, then market the home to buyers, negotiate contracts, and resolve any issues or complaints that happen during the inspection or loan application phases. It’s not an impossible feat, but you’ll find that it’s much less of a headache if you simply go through a real estate agent.

Myth # 3: Every home has a specific value.

The truth is that no home has a specific value or price that is set in stone. When most homes go under contract, a contingency to allow the buyer to obtain financing is in place. If a transaction fails, these homes are usually back on the market weeks or months after. Once it’s back on the back, when it sells again to a second buyer, the price is usually much different than the original asking price. Whether it is higher or lower than the original price, the one thing that is true is that the home is seen as a different value by the second buyer than it was of the first buyer. Each person has a different way of perceiving value, and because of this, no home has one specific value. Beauty is in the eye of the beholder!