Real Estate Myths
When erroneous information about real estate is believed, it can hurt the reputation of real estate professionals. Help your clients understand the truth about how the real estate process works.
While everyone thinks they understand how real estate works, many erroneous assumptions need to be cleared up. Time to bust the myths!
- Real estate agents are paid a salary. Contrary to popular belief, realtors do not receive a base salary. Even though realtors are well-groomed and professional, they are not given a salary to assist them with broker events and marketing expenses. Their time and expenses are paid for 100 percent by them.
- A realtor’s gas, mileage, and transportation expenses are reimbursed. There is no ‘transportation’ fund set aside to reimburse realtors. Realtors are 100 percent responsible for any transportation expenses.
- The realtor keeps the commission. In actuality, the agent’s employer is paid the commission and they, in turn, pay the realtor a predetermined percentage which becomes the realtor’s gross income from which taxes and social security must be deducted. The split varies based on the company and realtor’s production level. Realtors cannot rely on a weekly or biweekly paycheck. They are paid when a closing is complete.
- Realtors earn a 6 percent commission. While 6 percent is the standard commission, the commission is generally divided between the seller’s broker and the buyer’s broker.
- A home inspection is a pass or fail. Home inspections assess a home’s condition. The inspector will provide an objective report explaining issues with the plumbing, electric, HVAC and other systems. There is not a pass/fail result.
- Weekends are the best days to find a buyer. Most serious showings happen during the week. Weekend open houses tend to attract nosy neighbors or ‘open house obsessed’ people.
- Zillow’s estimates are the end all and be all. Just because Zillow says it, does not make it true. Zillow does not physically visit any properties, nor do they pull comparables. Zillow can attempt to provide a general idea of the home’s value, but it is far from an exact valuation tool. In 2016, Zillow’s CEO sold his home for 40 percent less than this Zestimate was.
- The Longer a house is for sale, the more negotiable the deal. A home may be sitting on the market because of its layout, location, or condition. It is not always the price that dictates how quickly or slowly a home sells.
- Price your home on the high side, so you can reduce the price if there is an offer. Competitively pricing a home will increase the traffic from the get-go. Buyers can make offers, but not buyers who do not see the house. A property priced too high will dissuade visits and reduce the opportunity for offers.
- All realtors are the same. The real estate process may be similar, however no two realtors are the same, nor is their approach. Realtors have different approaches and achievements. Some are more committed, devoted, and professional than others. Some expend more energy working with buyers and sellers. A creative and resourceful realtor will generate more sales.
Whether you are buying a property to fix and flip or fix and hold, you need an experienced title company to ensure the title of the property is clear from all defects. Florida National Title can help search any titles on any property you wish to purchase.
Expert Title Services Jupiter
Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase and refinance experience and have helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to understand the process better and to help them avoid many of the pitfalls. Call us at (561) 408-0729 or visit our website.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
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