Real Estate Myths: Part I

There are numerous real estate ideas and concepts in the mainstream media that I would consider myths. Things that everyone is taught to believe, but in reality, when you look at today's real estate market, they in fact are not true.

The first real estate myth: I am going to sell my home by owner to save money. Reality: statistics show the FSBO's historically end up getting a lower sale price to list price in comparison with a normal seller working with an agent. Also, a seller also does not realize how complicated a real estate transaction can be, especially in today's market with financing options decreasing. Even more so than ever, having a real estate agent on your side who can guide you through the transaction is imperative.

The second real estate myth: open houses are an effective way to sell my home! Reality: less that 1% of homes for sale sell through an open house setting. The seller feels they are valuable however, because they can "see" their agent working on Saturday afternoon. Hauling out those for sale signs, putting a nice ad in the newspaper. Though open houses may not be an effective way to sell homes, they are a great way for newer agents to "prospect" and meet potential buyers.

The third real estate myth: I need a Realtor who knows my neighborhood to sell my home. Reality: hire a real estate agent with a top marketing plan that will bring the buyers to your home. Simply knowing a neighborhood is great. However, your real estate agent's job is to market your home through many different advertising sources: the internet, print ads, radio, television. This should be the focus of your conversation with the potential agent. Ask him or her what type of marketing strategy they have, ask them where they will advertise your home.

The fourth real estate myth: I had 35 showings on my home, but my agent just could not "sell" the home. Reality: your home is overpriced in this case. Your agent's job is not to "sell" the home. Your agent's job is to get those 35 people to take a look at your home. If after these showings you do not have an offer, there is a definite problem with price and also possibly condition.

The fifth real estate myth: I want my agent to be at the showings to point out all of the great features of my home. Reality: potential buyers do not want the listing agent present at showings. It creates an uncomfortable environment. The buyers will see these great features on their own.

Article Source: http://www.propertymagnate.com/articles

Ryan O'Neill is a licensed agent with RE/MAX Advantage Plus. As the founder of The Minnesota Real Estate Team, Ryan and the team help clients buy and sell Minneapolis Real Estate. This team is a dynamic group of Minneapolis Realtors.

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