29 Sep Real Estate Myths
The year is going by so quickly and there are people out there who still want to list their homes for sale. Today, Deborah Elliott-Shultz discusses some myths about the real estate market and helps clear up confusion by providing the truth.
Myth: Real Estate Agents (REA) make an hourly wage.
Truth: REAs work off commission through the seller and is paid through commission. Typically, a buyer never pays their REA to show to see homes. In the sixteen years Deborah has been selling real estate, she has only heard of one person who charges their clients to look at homes, but it’s not typical. The buyer’s REA is paid a commission rate of whatever the seller is willing to pay and the listing company pays the buyer’s agent. Does the buyer ever pay the commission? It’s not unheard of, like if the deal crashes and burns there might be a contingency clause. But it’s not typical that the buyer pays the commission.
Myth: The agent keeps all of the commission.
Truth: If a REA belongs to a “big box” realty company, the agent’s commission is dependent on their arrangement. The arrangement depends on how the company is set up.
Myth: Typical commission is 6%.
Truth: Yes, but there are also other charges (admin fees, file fee, whatever fee they call it) on top of the commission fee. While 6% is not set in stone, it is common here in Colorado. 3% of that goes to the listing agent, and the seller also has to pay the buyer’s agent, which is usually 3%, also. The other charges and fees are usually around $500, but have seen it as high as $900.
At MiaBella Properties, we don’t charge any extra fees. We just have a flat listing fee of $3500, but you still have to pay the buyer’s agent. On the MLS, it will state how much the seller is willing to pay. There isn’t a set-in-stone rule or law to determine the commission rates. But remember that real estate agents are people, too, and the commission rate is their incentive to show the house.
Myth: REA transportation expenses (gas, mileage, etc.) are reimbursed.
Truth: REAs are independent contractors and transportation expenses are not reimbursed. If you are thinking about becoming a REA it is important for you to have expenses saved up for at least a year, preferably two, because it can get very expensive.
Myth: Marketing expenses aren’t the agent’s responsibility.
Truth: Your REA pays for advertising. One hint, please don’t have a home listed in a newspaper. Most people don’t turn to a newspaper anymore. Likewise, sending out a postcard to homes is a long shot because your sending postcards to people who already have their homes.
Part of the marketing strategy of MiaBella’s $3500 flat listing fee is a professional photographer. Check out miabellaproperties.com to find out all of the things we do to sell your home. We pay for all of our advertising; our buyers and sellers don’t pay for it.
You can contact Deborah Elliott-Shultz at 719-641-1357 with any questions you might have.
Myth: A home passes or fails inspection.
Truth: Nope. As a buyer, you hire an inspector (this isn’t your uncle, brother, or grandpa who might have been in construction), this is a bona fide home inspector that is certified with a bona fide business. A professional, certified inspector typically checks from the roof to the foundation-but they don’t have x-ray vision-and they will report on what needs to be corrected in a home. When the inspection report comes back, if something needs to be fixed list it on the inspection objection and allow the buyer to correct those issues.
Every home is going to have an issue. What you consider an issue isn’t always what somebody else would find to be an issue. If something comes up, don’t freak out about it. The biggest issues are the roof and foundation. Nail holes in the walls are not a big issue, it just means the house was lived in.
Myth: Weekends bring out the most serious buyers.
Truth: A lot of people want to be with their family on the weekends. Sometimes, they just don’t want to have to drag their kids around with them. People want to see homes 7 days a week for different reasons.
Myth: Zillow says this, therefore it is.
Truth: Please! If you want facts, ask your realtor. Zillow isn’t the most accurate website for home prices. The most accurate is realestate.com, but it’s not 100%. To get the best idea of how much your home is worth, ask your seasoned agent.
Myth: Better to price on the high side so seller can bring price down.
Truth: You want to list your home where it should be. Bring attention to your home by pricing it correctly. And in the current market, overpricing your home will make it less appealing.
Myth: An open house will sell your home.
Truth: It’s not a guarantee that an open house will sell your home. Your neighbors are more likely to come because they’re nosy.
Myth: Hire a seller’s agent because they claim they have hundreds of buyers. Or they claim they’ll buy it if they don’t sell it within a certain time frame.
Truth: If your seller’s agent has that many buyers, they won’t need to market your home because they have a buyer already lined up. If the REA has promised to buy it from you they’re going to negotiate your price way down so they can turn around and sell it for a higher price later.
Are you interested in finding out about Deborah Elliott-Shultz and MiaBella Properties’ flat listing fee of $3500*? Go to cityofcs.com and follow the real estate links to learn about all we do to sell your home. And, have you heard about our buyer’s rebate? That’s right! We give back 1/3 of our commission to help you with your closing costs or to buy new appliances which will be reflected on the settlement statement, and you’ll get it at closing along with a W-9.
If you have any real estate questions, or to find out how MiaBella Properties can help make your real estate experience more affordable, call Deborah Elliott-Shultz at (719) 641-1357.
*If listed for under $650,000 and does not include the buyer’s agent fee.