Wednesday, January 21, 2015
5 Real Estate Misconceptions
Real estate agents tend to have a reputation that involves pushy antics and the will to sell their property at any cost. While this is definitely the case for some individuals, it does not speak for the whole real estate market. In fact, there are numerous misconceptions when it comes to this profession and the overall industry. Check out five of them below:
1.Real Estate Agents Receive a Salary
Many people think that real estate agents are like any other profession where they receive an hourly rage. However, that's not the case here. A real estate agent is practically unemployed until someone hires them to sell their home or aide them in purchasing property. These individuals only get paid after a settlement is reached and even then, the broker gets a lot of the money. These brokers take cash out for whatever the agent owes as part of their office fees and ultimately splits the profits. Once the agent gets paid, they must then pay takes on that amount.
2. Homes That Sell Quickly Were Priced Too Low
A lot of people tend to believe that when a home sells very fast it's because the property was priced way too low but that's not true. It's the opposite. This home was priced just right, making it highly desirable. If the home was priced above what it's valued as, it would just sit on the market and go nowhere. This happens so often nowadays that the overall public have begun to think it's normal but it's not. In real estate, the goal is to sell a home as quickly as possible for the highest amount possible.
3. The More Visible an Agent is, The Better They Are
Real estate agents love to post their signs around town to publicize their services which usually makes the public think they are the best candidate to go with when they need a professional. This is a misconception, though, as it's not proving anything. These signs don't mean they're selling homes. Instead, it means they're advertising themselves. Remember, once a home sells the sign comes down. That's why you should be a bit weary if you see a ton of for sale signs from the same agent in your area.
4. Everyone Who Sells Property is a Real Estate Agent
Plain and simple, not every person who sells a home or helps an individual purchase a home is a Realtor. In order to become a real estate agent, the person must join their local Board of Realtors, and then pay out any dues that are required. To be a Realtor, the individual must also follow a strict Code of Ethics.
5. The Agent Who Lists the Property is the Person Who Sold the Home
Often times a whole new real estate office has the buyer who ends up purchasing the home and when that happens, that is who sold the home, not the listing office itself. That's why there can't be any assumptions that the person who has their name on the sign is the one who ultimately sold it.