Debunking 4 Major Real Estate Myths

There are four real estate myths that, unfortunately, too many people believe. Some of them could even cost you a lot of money.

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There are four major real estate myths that I wanted to debunk for you.

1. Realtors get kickbacks from lenders, home inspectors, and other referrals. This is not only untrue and unethical but according to the Real Estate Settlement Procedures Act (RESPA), it’s also against the law. No professional Realtor is going to jeopardize their career or reputation just for a kickback. Most agents, however, will give you recommendations for vendors like lenders or inspectors because they build professional relationships with these people and they know that they’re good at what they do. It only helps to ensure a smooth transaction for everyone involved.

“

Realtors won’t jeopardize their career
just for a kickback.

”

2. You should choose the listing agent that says they can sell your home at the highest price. Choosing an agent that understands the current market and prices your home accordingly is crucial. Pricing your home too high only means that it will sit on the market longer, you’ll get fewer showings, and receive fewer offers. You’ll most likely end up dropping the price and wasting valuable time. You can price a home at whatever you want, but the fact is, a bank will only loan on the appraised value of the home, and your home will only sell for what someone is willing to pay for it.

3. Real estate agents want you to pay a higher sales price so they can get a higher commission. Realtors are honest professionals who, more than anything, want you to get the home of your dreams at the best possible price. In California, by law, a buyer’s agent is obligated to act in your best interest. Many factors go into consider the offer price on a home, and your agent will work with you to determine the best offer amount. For example, if you’re in a multiple offer situation, you may considering making a strong offer to give yourself the best chance to get your offer accepted.

4. A cash offer is always the best offer. While a cash offer is always a strong offer, it’s not always the best offer in the eyes of a seller. There are many crucial elements of an offer that need to be analyzed by a seller, such as the financing terms, contingencies, and time needed to close. For example, a conventional offer with no contingencies may be the seller’s best offer when compared to a full-price cash offer with a contingency of the buyer’s home needing to sell first.

Thanks for visiting the blog today! I hope you found this information helpful for your next real estate transaction. If you have any other real estate-related questions, always feel free to call me or email me. I’d love to hear from you!