Six Myths About Northern Virginia Real Estate

A myth is something that is widely believed but false.

When buying or selling real estate in Northern Virginia, it is important to understand the process,the realities of the market conditions, and the facts of how to work with an experienced Northern Virginia Realtor.

This article will dispel six of the most widely held myths about Northern Virginia real estate. 

Six Myths about Real Estate in Northern Virginia 

Myth #1:  All Northern Virginia real estate brokerages and real estate agents charge the same amount to sell your home.

FACT:  All fees and commissions are always negotiable.  There is no standard or set fee schedule for real estate commissions in Northern Virginia.  Commissions vary from brokerage to brokerage and indeed even between agents in the same brokerage firm.  However, don't assume that the lowest fees and commissions are in your best interests.  When choosing a Realtor to sell your Northern Virginia home, base your decision on experience, expertise, and their marketing and negotiating know-how.  You can always talk about fees and commissions later.  Make sure that you have the best agent for the important job of selling your home who will provide the best service.  What you might save on commissions, you may lose in the end if the agent does not provide superior service, marketing, and negotiation to sell your home at the best price in the best timeframe.

Myth #2: I can save thousands of dollars by selling my home myself (For Sale By Owner "FSBO") and cutting out the agent and their fees. 

FACT:  The overwhelming majority of "FSBO" sellers in Northern Virginia eventually list their home for sale with a real estate agent.  Why?  The owners failed to realize the complexity, money, and time commitment of selling a home on their own.  Somewhere between figuring out the proper advertising, scheduling showings, understanding contracts, and the negotiations process, most owners realize that they would be better off by hiring an experienced Northern Virginia Realtor to assist with the sale.  Additionally, most Northern Virginia FSBO sellers end up netting less than they would have had they worked with a Realtor.

Myth #3:  If I sell my Northern Virginia home and make a large profit, I will have to pay enormous taxes on the profit.  Maybe I should just stay put and keep the house.

FACT:   Although this might be true in certain cases, for most homeowners in Northern Virginia there will be no capital gains tax due on the sale of their home.  The 1997 Taxpayer Relief Act contained a big tax break for homeowners.  If you sell your home, you may exclude up to $250,000 of your capital gain from federal taxes.  If you are married, the exemption rises to $500,000.  Make sure you seek professional advice from your tax attorney or CPA when selling a home with more capital gains.

Myth #4:  Realtors cannot help me find a new construction home in Northern Virginia because they only list and show previously owned homes.

FACT:  Most Northern Virginia builders fully cooperate with Realtors because they want to sell their homes in the new developments quickly and they know that most people looking for homes will have a buyer's agent.  Having a Realtor on your side representing you when purchasing a new construction home from a builder does not cost you any extra and will make sure that you are adequately protected.  Northern Virginia builders typically use a different contract from the standard Northern Virginia Regional Sales Contract, and their contracts are known to be very one-sided in favor of the builders.

Myth #5: The Realtor showing me a house always represents me and my interests.

FACT:  Unless you have signed a Buyer's Agency agreement with a Northern Virginia Realtor, the agent must put the interest of the seller first.  When looking for homes, keep in mind that a listing agent who advertises their homes for sale always represents the seller.  It is very important to have your own representation as a buyer when getting involved in a home purchase. 

Myth #6: If you offer the listing price for a Northern Virginia home, the seller must accept it.

FACT:  As with all contacts, there must be an offer and acceptance. A seller is not obligated to accept an offer at the advertised price.  While in today's Northern Virginia buyer's market, it is likely that a seller will accept a full priced offer (depending upon the other terms), it is always the sellers right to sit back and wait for a better offer to be presented.

If you have other questions about the Northern Virginia real estate market, please call Brian Block at 703-626-0715 or send your question by e-mail.