Have you ever watched the television show MythBusters? If not, it is a show that takes various theories and tests them to decide whether they are fact or fiction?
As a real estate professional, there are tons of theories that not only buyers and sellers believe but also other Realtors®. There literally could be an entire segment on the show MythBusters relating to the most common real estate myths.
What are some of the most common real estate theories that you hear on a frequent basis?
Below are three of the most common real estate myths and theories and some insight into why they are simply not true!
Every Real Estate Agent Is Identical
Potentially one of the most frustrating one out of all the real estate myths that exist is that all real estate agents are the same. This is the furthest from the truth and buyers or sellers who believe this myth generally will learn that this is not the truth at some point.
Why All Real Estate Agents Are Not The Same For Home Sellers
Selling a home is a big deal. There are many pieces that all need to be accounted for when selling a home. The reality is that all real estate agents do not have the capability of possessing all the pieces of the puzzle.
Sellers who believe that all real estate agents are identical can find out quickly this is not true by asking an agent about their marketing and online presence. One easy example of this is the fact that all of you ActiveRainers who are reading this are much different than others in your local market. While some real estate agents have profiles on social media sites like ActiveRain, Twitter, Pinterest, Facebook...are they using them to their best ability? Are they actually giving their sellers additional exposure by using social media or are they just using it as place to talk all about themselves and their listings - I call it using social media as a ME channel...ME ME ME ME ME...
Another excellent way to prove that all real estate agents are NOT the same is by looking at online exposure. In any given market, I'm pretty certain that I can count with my fingers the number of real estate agents who understand the importance of a website and know how to leverage their website to build their business and to give their clients homes exposure. A real estate agent who has knowledge about SEO, blogging, and the importance of having a highly ranking website is not the norm.
An agent who writes quality real estate content and knows what types of real estate content to write about can truly give themselves and their sellers an advantage over their competition!
Why All Real Estate Agents Are Not The Same For Home Buyers
Just like selling a home is a big deal, guess what, buying one is as big of a deal! All buyers real estate agents are not the same and for many reasons.
One of the biggest differences between buyers agents is whether they are available to show buyers homes or not. Since the majority of people are busy, it's important that buyers agents can accommodate a buyers schedule, not their own. If a real estate agent is part-time, do you think they will be available to show houses to a buyer when it's convenient for them or when it's convenient for themselves? Of course themselves.
It's important when buying a home (or selling) to understand all agents are NOT the same. One of the best ways to figure this out is to know what type of interview questions to ask prospective real estate agents. Check out this resource by Bill Gassett over on List.ly that provides some excellent articles relating to real estate interview questions.
Mortgage Pre-Approval & Pre-Qualification Are The Same
Another top real estate myth that is pretty common is that a pre-approval and pre-qualification are the same. It's important to understand the differences between a mortgage pre-approval and pre-qualification.
A mortgage pre-approval is what both a buyer and seller should be looking for. To obtain a mortgage pre-approval a buyer must submit documents to a lender such as their tax returns, bank statements, pay stubs, and other various required mortgage documents.
Once a lender receives these important documents they will review in detail to ensure the buyer is truly able to obtain a mortgage. When selling a home, it is strong suggested to request that buyers who submit purchase offers include a mortgage pre-approval not a pre-qualification.
A mortgage pre-qualification is best described as an estimate of what a buyer can afford. A mortgage pre-qualification in many cases is only as good as the paper that it is written on.
Depending on the lender, a mortgage pre-qualification can be obtained by a buyer simply giving a mortgage consultant information over the phone. The big problem with this is if a buyer stretches the truth in some areas, such as their income or even possibly their job history.
Open Houses Are Needed To Sell A Home
The third real estate myth, one that will inevitably rile up many other real estate agents, is that open houses are needed to sell a home. Open houses are NOT needed to sell a home!
Did you know that less than 5% of homes are sold as a result from an open house? There are many PROS and CONS to open houses, but the truth is there are more CONS. A home can be sold without open houses if it is priced correctly and the proper marketing is used. I always ask sellers (and other real estate agents) who believe open houses sell homes if they honestly believe a serious buyer will skip their home because it is not open. Their answer 99.9% of the time is no and that they would contact their Realtor® to schedule a private viewing.
It is simply wrong that some real estate agents convince sellers that they will sell their home because they will hold it open every weekend. Real estate agents should explain that open houses will give some additional exposure to a home but the primary purpose of open houses is for real estate agents to prospect and potentially pick up additional buyers.
Check out this great resource from Bundlr that provides many articles discussing why sellers don't need open houses.
The 3 real estate myths above are some of the more common ones. There are literally hundreds of other real estate myths that exist. It's important that buyers, sellers, and real estate professionals dig deep to find out whether a real estate myth is true or not!
So, as mentioned about, what are the most common real estate myths that you hear on a regular basis?