Does The Current Real Estate Confuse You?

REAL ESTATE MYTHS YOU NEED TO STOP BELIEVING

The Real Estate world can be confusing, whether you’re a first time home-buyer or have experience in buying and selling.  It can often be difficult to separate fact from fiction. Here is a list of some of the most common myths in real estate that you may hear:

Myth #1: Agents try to make you pay a higher price, so they get a higher commission. 

Real estate agents do not do this. They are honest professionals who more than anything, want you to get the home of your dreams at the right price. When making an offer on a home, there are many factors to consider. Your agent will work with you to determine the best offer amount that can ensure you will get the home of your dreams.

Myth #2: Giving a lower commission to my agent will give me more of a profit on the sale of my home.

You get what you pay for. If you hire a Realtor, you get their experience, their negotiating skills, and their proven track record. Top agents do not discount their services because they don’t have to. If you are offering to paying them less, there is a chance that you will lose that experience for they will not accept your terms.

Myth #3: Realtors get kickbacks if they recommend certain services.

Not only is this untrue and unethical, but according to RESPA (The Real Estate Settlement Procedures Act) it is against the law. No professional Realtor will jeopardize their career and reputation to receive a kickback.  Your agent will give you recommendations for various vendors, simply because they have professional relationships with these lenders and have had positive experiences with them in the past. They want you to have the best person. And remember, Realtors experience many Real Estate transactions so they know the good from the bad and will actively look to help you as best they can.

Myth #4: You should choose the listing agent that wants to list your house at the highest price.

A listing agent that understands your current local housing market and can prices your home accordingly is crucial to selling your home.  Pricing your home too high only means that your home will sit on the market longer. You will get fewer showings and fewer offers, while the same house down the street at a lower price will sell more quickly. This is a waste of your time. Don’t be drawn in by the highest price, but the best professional experience.

Myth #5: Spring is the best time to sell.

It is necessarily the best time to sell in the spring. Most people just don’t want to deal with selling their home in the winter and others tend to be under the impression that there aren’t enough buyers during that time, but the truth is, with less inventory during the winter there are more buyers than there are listings and that puts the seller in a great position.

Myth #6: Cash is always the best type of offer.

Cash is a strong offer, but it is not always the best.  There are many crucial elements to an offer that a seller needs to analyze when making their decision, such as the financing terms, the contingencies, and time needed to close. Make sure you note all of these before jumping into accepting the cash offer.

Myth #7: I can sell my home on my own and save money. I don’t need a Real Estate Agent.

It’s true that you can sell your home without paying a listing commission. However, most buyers will be working with an agent, and that agent will expect to get paid for bringing you a buyer and facilitating the transaction. They will typically ask you to sign a One Party Listing Agreement prior to bringing their buyer over.  This means that you agree to pay them a commission.
Listing with an agent is also a good idea because they pay to get your home exposed to the maximum number of buyers and therefor get it sold more quickly.  They pay to be a member of the MLS which is where your home gets listed. It then feeds into Zillow, Trulia and all of the other third party real estate sites. What all of this boils down to in the end, is that you need to make sure that you hire an experienced real estate professional to represent you.  Look online and check all of their reviews, browse through their website, and check their stats and credentials.  Hiring the right person means that they will have your best interests in mind and will help you to make the best decisions when buying or selling your home.

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About The Pelatti Team

We are a Real Estate Team located in New City, NY. We are available to offer our expertise to help those looking to engage in any Real Estate transactions such as buying, selling or renting commercial or residential property. Our area of expertise is in Rockland, Westchester, Orange and Sullivan Counties in New York as well as Bergen County in New Jersey. Our team is made up of 3 members: Rosemarie Pelatti, Ilene Angel, Joseph Pelatti, Lymari Rodriguez, and Kristin Pelatti
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