Every day real estate agents answer questions from buyers and sellers. Often these questions involve myths of which agents are very aware. Most potential customers believe information a friend has provided them as accurate without investigating themselves.
In this series, I'll outline 8 common myths and misconceptions regarding the buying and selling of real estate. This myths are often found all over the country and not limited to any one area in particular
Here then are the first 4 common misconceptions about buying and selling real estate my customers have presented me…
- Foreclosures are the best deal
While there are certainly some very good deals when purchasing foreclosures, often times making an offer on a property not in foreclosure is a better deal.
When purchasing a foreclosure it is highly recommended that a full and thorough inspection be made of the property to ensure everything works and all significant features of the property are in good condition.
- Look first get a loan second
First time home buyers as well as those who have not purchased a home recently are often misled into believing they should look at homes before obtaining proper financing.
Think for a moment about looking at several homes before obtaining pre-approval. An agent shows you several and you make a full purchase offer with an earnest money deposit of $2,500 on a $250,000 home and it is accepted.
You contact your lender for approval, who responds that you are qualified for a loan up to $200,000. Not only are you not qualified to purchase this home, but it may also be difficult to get your earnest money deposit returned to you. This can be a significant disappointment to you during your search for a new home. In addition, you've wasted the time of all parties concerned including yourself.
- I must see all properties in my price range before deciding
Many buyers believe looking at every available property for sale will give them more options before making an offer.
Unfortunately the truth is actually the reverse – Looking at many properties tends to blur one into the next. When buyers view too many properties, they tend to forget or blend one properties prominent feature with another.
Your real estate agent will be able to print out the properties that best match your criteria and show these to you so you can make a quick, informed purchase offer.
- Real estate agents make too much money
This misconception is quite interesting – It is often expressed mostly by sellers wanting to haggle over a commission amount.
Did you know that the real estate agent actually only receives a small amount of the total commission?
Actually, the listing real estate agent only gets ¼ of the total of commission out of which their bills must be paid such as advertising, signs, MLS fees etc.
While some agents do make a very good living, it is not because of the amount of commission but instead because they treat their clients well, are well educated and have good business sense and ethics.
Summary
As you can see in the first 4 myths and misconceptions, working with an agent is very important!
In the next part of this series, i'll discuss a few myths where the truths may be surprising to most!
If you'd like to read the original article, you can read more about Common misconceptions about buying and selling real estate
If you're interested in purchasing or selling a home or condo in Panama City or Panama City Beach contact Jennifer today!. Directly: (850 ) 774-6582.
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