Real Estate Myth or Fact?

By
Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

Real Estate Myth or Fact, have you ever wondered how a myths gets started?

I have heard some dousy's over the years.  Some make me laugh while make me want to scream no!  Where did you hear that?

Myths may be hard to break but facts are facts.

  1. I especially like the one where every seller has to respond to every offer they receive.  The lack of response in the contractual designated time frame is a response.  NO, the offer is void because of no response.  It may be courteous to respond, or counter but it is not a legal requirement.
  2. Easements automatically drop off if they are not used.  NO, again a registered easement, unless having a written expiration date in the easement language stays with the property.
  3. Land owner surrounding a land locked property have to allow you to access your property.  Wrong again, there is no legal reason in Michigan a land owner must allow you access to your land locked property.  Have a helicopter? 
  4. You must be notified if someone dies in a home?  Nope, it falls under stigmatized property and the seller is not required to tell you about a death in the home.
  5. You can put down any dollar amount you want as a good faith deposit on any property.  No, wished this was true but on certain government and bank owned properties a specified deposit is required to have your bid reviewed.  This is not to say, that in Michigan, legally your good faith deposit can be a little as you want as long as it is tender of good faith.  The contract will qualify for that.  The truth is most seller will not take your offer seriously with a deposit of $1.00.
  6. A newly licensed agent and a career agent have the same real estate training?  In most cases this answerReal Estate Myth or Fact? would be no as well.  Speaking to the letter of the question.  Agents must attend continuing education classes.  A new agent has learned license law.  Not presentations, negotiations or inspections, appraisal issues that will help their client, if they have a client yet.  Most agents bring skill sets from other vocations.  They did not graduate from High School or College and set their goal to be a real estate agent, in most cases.
  7. Sellers have to tell the truth on seller disclosures so seller disclosures are always true.  Do I wished this was true yes.  Is it always true?  NO.  That is why you have inspections, to find out the condition of the home before you purchase.  Not every seller has lived in the home they are selling.  Some people are selling investment property or their parents home.  They may not have first hand knowledge of the real condition of the property.  Some sellers give vague answers knowing a problem exists.  Most sellers are truthful and offer a snapshot of the properties condition with seller disclosure statements.
  8. inspections, all inspectors are the same?  No, some inspectors were builders and have a supreme knowledge of home building and repair.  Other purchased a franchise and learned a checklist and memorized a guideline to recite.  In Michigan, as of today's writing home inspectors are not licensed.  I think that day is coming.  Use common sense when selection a home inspector.  The home you purchase could have hidden flaws that only a seasoned home inspector with proper training and knowledge will find.
  9. All updates and repairs will help you get more for you home when you sell? No, some upgrades and repairs are considered personal comfort choices while other repairs will be viewed as routine property maintenance.  Ask your agent what updates will improve your profitability when selling your home.
  10. I you accept a contract, inspections are approved and the loan is approved you can count on your home selling?  NO, the fact is most lender pull one last credit it report the day of close to see if any changes in the buyers credit have been reported.  Buying a new car to match their new home, furniture, that beautiful boat all can stop the lender from funding the loan.  You are basically out, your sale is off, done, over.  The bank even checks job status.  I had a buyer laid off three days before close.  The sale fell through.  Nothing is certain until you have the check in your hand.  Michigan even has a 3 day rescission after closing in many cases.  Don't spend your money until you deposit the check!
Here is just 10 Myths that seem to never end.  I could add another 20 to the list but it's easier if you use a career real estate broker to help you through the mine fields of buying and selling homes.  I am not offering legal advice.  If you have a legal question, please seek out a real estate attorney.
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Wallace S. Gibson, CPM 02/24/2013 07:46 PM
Topic:
ActiveRain Community
Groups:
Realtors®
Michigan Realtors
Greater GRAND RAPIDS, MI Real Estate
Tags:
buying real estate
real estate myths
selling real estate
real estate facts
real estate myth or fact

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Rainmaker
4,432,093
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have hit suggest. I hope others will read this  post  and learn.

Feb 24, 2013 07:45 PM #1
Rainmaker
1,234,060
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I like the one where I have to take every rental discussion about a property to the property owner....HEY!  They hired me to handle these discussions as we have already had the discussion about how I handle these discussions.

Feb 24, 2013 07:45 PM #2
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Gita, hope all is well Gita.  Thanks for the suggest and stopping buy again!

Hello Wallace, isn't this fun to see how many ways someone can ask the same question expecting a different answer. Myths seem to hang around and get retold with slight variations.  Thanks for the comments.

Feb 24, 2013 07:56 PM #3
Rainmaker
790,023
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
Amazing how these can be taken as facts, when in fact, it is up to the seller most times, isn't it?
Feb 24, 2013 08:33 PM #4
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Carol, Fact and Fiction can be blurred without ever knowing the facts changed.  I sometimes smile, other times I frown and then there are times when I am just flat stunned by what people say and ask to confirm as fact.  Thanks for your comments Carol.

Feb 24, 2013 08:38 PM #5
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Rainmaker
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Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Real Estate Services You can Trust!
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