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Real Estate Business Review | Sunday, April 25, 2021
Because most people aren't well-versed in real estate, there may be some false information spread by those who aren't intimately familiar with the process of residential real estate.
Fremont, CA: Someone who purchased a home 20 years ago may believe the process is still the same and pass on outdated information to others, believing it to be true.
It can be surprising when someone begins the home-buying process and discovers that the process is not what they expected, whether for the better or, the worse. As a real estate agent, you may encounter some of these real estate myths, so it's important to be aware of what's out there. Here are some common real estate myths that have been debunked!
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Myth No. 1
False. Real estate agents only receive a small commission from selling a home. The seller pays the realtor fees for both the seller and the buyer, typically around 6% of the sale price. After the brokers deduct their fees, the commission is split between the two agents.
Every agent makes a lot of money.
Most agents pay for marketing out of their own pockets, so once those expenses are deducted, along with taxes and other expenses such as gas, car maintenance, health insurance, and so on, they bring in is even lower. To make a significant profit, real estate agents must sell many homes or a few very expensive homes.
Myth No. 2
Agents can take you to any house you want to see.
False. You must be under contract with an agent as a buyer for them to show you homes. A listing agent for a seller is also not required to show a buyer a listing if another agent represents the buyer unless the agent requests that the listing agent show the home. You don't have to waste your time and energy on something that won't result in a sale if someone isn't planning on writing an offer and wants to look at houses for fun.
Myth No. 3
To make a sale, agents will say anything.
Any agent worth their salt will be truthful with a client. As an agent, you must follow a strict code of ethics and numerous rules and regulations. Many people believe this myth because agents aren't paid until a home sells, so they believe the agent will say anything to expedite the sale so they can get paid sooner. You want to do the best thing for your client, but you also don't want to get sued or lose your license.
Myth #4
Pre-approval occurs after locating the ideal home.
False! Many buyers believe that getting pre-approved occurs only after finding the perfect home. Before going house hunting, a buyer should be pre-approved to know how much they can afford. A buyer may find the ideal home, make an offer, and then be denied by the mortgage lender, losing out on the house. A buyer who has been pre-approved has an advantage in a bidding war because they have proof that they can afford the home.
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