Real Estate Myths
When buyers and sellers believe erroneous information about real estate, it can hurt the profession. Educate your clients on how the real estate process works.
10 Real Estate Myths Busted
- Real estate agents are paid a salary. Realtors do not receive a base salary. Their events, marketing, time, and expenses is their financial responsibility. Realtors rely on their commissions to for their livelihood.
- A realtor’s gas, mileage, and transportation expenses are reimbursed. Realtors are not given a transportation fund. All traveling, showings, and transportation expenses is their responsibility.
- The realtor keeps the entire commission. Realtors do not earn 100 percent of the commission. Commissions are normally divided between the seller’s broker and the buyer’s broker. The real estate agents receive a predetermined percentage of their broker’s commission. It is the agent’s responsibility to pay income taxes and social security taxes on their earnings. The realtor’s production level and company dynamics determines the percent the realtor receives.
- Realtors earn a 6 percent commission. While 6 percent is the standard commission, there are a variety of factors that enter into negotiation of the commission.
- A home inspection is a pass or fail. Home inspections assess a home’s condition by providing the home buyer and seller with an objective report explaining issues with the plumbing, electric, HVAC systems.and any structural issues. These inspections are not pass or fail.
- Weekends are the best days to find a buyer. Unless you want nosy neighbors and open house obsessed people, it is best to schedule open houses during the week. Most serious showings happen during the week.
- Zillow’s estimates are the end and be all. Just because Zillow estimates it, does not make it true. Zillow does not physically visit properties, nor do they ascertain values from the sales of comparable properties. Zillow may (or may not) provide a general idea of the home’s value, but it is not remotely a precise valuation tool and should never be viewed as such. 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. Price is not the only part of a house preventing its sale. A home’s layout, lot, location, or condition can also be reasons why a house is sitting without a sale.
- 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. Buyers may avoid visiting a property that is clearly overpriced, thus reducing the pool of potential buyers that would otherwise see the property and make a fair offer.
- All realtors are the same. The real estate process may be similar, however no two realtors are the same. 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.
Richard S. Weinstein
Whether you want to fix and flip a home or fix and rent it out, Richard S. Weinstein is the real estate attorney you want to hire to help you navigate the process. He can offer invaluable advice and ensure the process is meeting all legal guidelines.
With over 50 years of experience as an attorney, Richard S. Weinstein assists clients with the important financial situations in their lives. Whether you are dealing with bankruptcy, real estate (both commercial and residential, including short sales, foreclosures, and title insurance), estate planning, probate, business formations, or sales or mergers, Richard S. Weinstein is the attorney with the education, experience, and knowledge you need!
Law Office of Richard S. Weinstein, P.A.
250 S. Central Blvd. #101
Jupiter, FL 33458
Phone: (561) 745-3040
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