9 Common Real Estate Myths, Debunked

Facts Key Showing True Information And Data

If we aren’t the expert in real estate, chances are pretty high that our brother’s friend or cousin’s boss is!  So who needs an agent to buy or sell?  We can figure it out on our own or with a little help from our friends and save a ton of money.  Wait a minute! Not so fast! When it comes to real estate, most of us should probably defer to the professionals who have years of training and experience. If you’ve bought into any of the myths we’re about to cover, you may want to think twice before you try to “go it alone” on your next venture.

  • Myth # 1: When pricing your home, go a little higher to leave room for negotiation.

Often times, this backfires on the seller.  Agents and homebuyers tend to stray away from homes priced above market, and this can leave your house sitting with the sale sign in the yard.  Beware sellers! Buyers often become leery of homes that sit on the market too long.

  • Myth # 2: Buyers can get a better price without using a buyer’s agent.

This is a myth that is, very simply, false.  The agent’s commission is paid by the seller.  If the home is listed through an agent, and the buyer doesn’t use an agent, the listing agent receives the entire commission.  Furthermore, a buyer’s agent is priceless and can help the buyer avoid drastic mistakes and pitfalls.

  • Myth # 3: Selling your home without an agent will save you money.

It’s true that some people can successfully sell their own home.  But there are some serious issues that must be dealt with such as putting the home on the MLS, listing it online, marketing the home properly, and negotiating contracts.  Let’s not forget, when you list your home “For Sale by Owner,” the buyers always expect a good deal!

  • Myth # 4: The real estate market will only go up!

It seems that sellers and buyers alike tend to forget the ups AND downs of the market.  The old saying, “what goes up must come down,” is in order here.  Real estate prices DO fall, and the fall can be quite considerable.

  • Myth # 5: Update your kitchen and bathrooms before listing.

Everyone thinks these two rooms should be renovated.  Not necessarily true!  Buyers may not have the same taste, and they feel that the price is reflecting the recent upgrades.  It would be best for everyone to adjust the price accordingly.

  • Myth # 6: You will make your money back on the renovations you complete.

Major renovations will certainly sell your home more quickly, but the simple truth is that you probably won’t recoup your cost.  Sometimes, it’s a necessity, but don’t expect to get all of your money back.

  • Myth # 7: All properties listed on the MLS will show up online.

Not true!  This is your agent’s job.  Make sure you are on the same page and that he or she has your home showing up on the World Wide Web.

  • Myth # 8: Having an Open House will sell your property.

Rarely does an Open House result in a contract on the property that is being shown.  However, what is most helpful is an Open House specifically for brokers in your area.

  • Myth # 9: The agent showing or listing your home represents your best interest.

Definitely not always true.  In certain states, a client does have the option of signing a contract for the agent to represent him/her as a listing or buyer’s agent. Before choosing an agent to work with you, be sure to weigh your options and do your own research.

As always, we know you have a choice when it comes to real estate.  We are here to serve you!  Contact us here at the Jackie Ellis Team.  Call 561-965-1225 or visit us at www.JackieEllis.com.

Six Tips to Help Your Agent and Lender Close the Home Faster

Happy Family near new home. Residential construction background.

In today’s world, faster is better!  It seems everyone is moving at the speed of light, and it’s no different in the business of real estate.  When it comes to closing on a new home, we all want it to happen “yesterday!”  Of course, the average time it takes to close on a home is somewhere between 30 and 45 days.  So, what are some things you, the homebuyer, can do to help your agent and lender move a little more swiftly and complete the transaction?  Here are a few tips to get you on your way to closing the deal quickly….

  1. Have all of your ducks in a row!  Before you ever set out on the home shopping tour, have all of the necessary paperwork and documents ready to go.  Consequently, when you find the right home, the process will flow much more smoothly.  What are some of the documents you’ll need?  W-2 forms for the previous two years, 1099 forms, recent paycheck stubs, tax returns from the previous 2 years, a complete list of all debts and monthly payments, and the last three months of banking statements.
  2. Have your down payment and closing costs ready to go! Know the amount that will be due on the day of closing and the correct form of payment required by your lender.  While personal checks were once the standard, wire transfers or cashier’s checks are now more often used.
  3. Use an experienced broker or banker! A broker who lacks experience can slow down the whole process.  Insufficient documentation and other mistakes can slow the progress by days or even weeks.
  4. Complete repairs and submit documentation quickly! The quicker you complete repairs or concessions you’ve agreed upon in the contract, the quicker the contract and loan can move forward.  Keep and copy all receipts, turning the originals over to your agent or lender as soon as possible.
  5. Schedule the home appraisal ASAP! One of the first things your lender will need, before moving forward on the loan, is an appraisal.  Make it happen just as soon as you can!
  6. Be available and flexible! Be ready for anything during the homebuyer process.  Be ready to run documents to your lender or agent at a moment’s notice.  Be flexible when scheduling appointments for repairs to the home.  And, be agreeable and easy to work with as much as possible.

These tips should have you well on your way to an easier, quicker close on your new home.  As always, we are here to serve you!  Contact us here at the Jackie Ellis Team.  Call 561-965-1225 or visit us at www.JackieEllis.com.