There is a lot of misinformation about real estate out there, from agent misconceptions to unrealistic buyer expectations. Today, we want to set the record straight and debunk a couple of the most common myths we hear on the job.
- Getting pre-approved doesn’t need to happen until after you’ve found the perfect home
A prospective buyer should be pre-approved for a mortgage before they even start considering houses. Before getting involved in a full out search for that perfect home, eliminate the chances of any disappointment down the road by getting a pre-approval from a mortgage lender. Plus, in a multiple offer scenario, the buyer who has been pre-approved has a significant advantage over those who have not.
- All real estate agents are the same
All real estate agents are not created equal. Selling and/or purchasing a home is a huge decision, and you should hire a real estate agent that is uniquely qualified to handle your personal real estate needs. First, selecting an agent that is familiar with your geographic location is important. Second, sellers should partner with a listing agent while homebuyers should hire a buyer’s agent. Working with an agent that specializes in your situation ensures the best service and results.
- Selling a home “by owner” saves money
The primary reason sellers choose to sell their home “for sale by owner” (FSBO) is to save money on agent commissions. While it would be great if selling homes were as simple as sticking a sign in your yard, the fact is that there is much more to the selling and negotiation process than that. FSBO’s often end up losing money without the aid of a real estate agent marketing your property to their circles, advising during negotiation, and assisting with financial decisions.
Seller’s Tip: Hire a listing agent to help you with the listing, showing, and selling of your home. They are 100% worth the investment. Don’t believe us? Check out what our clients have to say about our agents at Hamilton and Company.
- In a bidding war, it’s a no brainer to pick the highest offer
In a hot seller’s market like we’ve seen this year, almost every home receives multiple offers. As a seller, it is tempting to hold out for and accept the highest offer, but this is not always the best move.
Terms play just as important a role as price in negotiation. For example, you may be inclined to accept the higher of two offers on your home, but the lower is an all cash offer. This lower cash offer eliminates a series of financial hurdles and results in a quick closing. In many cases, this may make the lower offer the right choice for you.
Seller’s Tip: Consider all the offers on your home and discuss the benefits of each with your listing agent. Your listing agent, familiar with your personal situation and the real estate market at large, will be able to help you make an informed decision that results in the most profitable, simple sell possible
- Fall and Winter is a bad time to buy
Many people assume that spring is the best time of year to buy a house, when in reality, too many buyers competing in the spring for limited inventory drives up prices. Score a better deal and shop during the off season when inventory is higher. Not only will you have more home to choose from, but there will be less competition forcing you to make a quick decision.
If you are in the market to either purchase or sell a home, Hamilton and Company’s talented team of buyer’s and listing agents can help! Contact us to learn more.
Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7.