by Matt Keating
De-bunking common real estate myths before you buy or sell can save you time, hassle, and money when it comes to buying or selling a home according to Phil Hotle, a Realtor with RE/MAX at the Crossing.
Many buyers think the listing agent will lower or cut their commission percentage, because they are getting both sides of the transaction. This is not true. Some people think the buyer pays a commission; however, the seller is the one paying it. The commission is typically agreed upon in the listing contract, long before a buyer comes along. The truth is that it’s better to hire your own Realtor, whose top priority is what’s in your best interest. While any Realtor does need to be honest, fair and ethical to all parties, and certainly there are real estate professionals out there who can be trusted to represent both parties, it needs to be understood that the listing agent still must represent the seller’s best interest as well.
The truth is a lot of homeowners don’t realize their home’s true value. They risk underpricing it or worse, overpricing and it sits on the market for months. When an offer is on the table, they may not be able to negotiate the best price or terms. They also need to know the ins and outs of the law so there are no costly legal ramifications later.
In reality, only two percent of homes are sold as a result of an open house, according to The National Association of Realtors. Can a sale result from an open house? Yes. Is it likely? No.
Listening to this myth can lead to several troublesome issues. A buyer can be devastated if they find a home they love, write an offer, and have it accepted, only to find out they have been declined for a mortgage. Additionally, a buyer who has been pre-approved for a mortgage before finding their perfect home has a significant advantage in a multiple offer scenario. A multiple offer scenario is a dream for a seller, and a nightmare for a buyer. But a pre-approved buyer’s offer is typically more attractive to the seller as it is less likely to fall through.
If you would like some more guidance with your next real estate transaction, please reach out to Phil Hotle at 317-919-8504.