Debunking 5 Common Real Estate Myths

Town & Country Realty has been serving the Fargo and Moorhead area for a long time. Over the years, we've found that clients often misunderstand some things about the real estate market. This isn't surprising. After all, no one is expected to be a real estate expert – except realtors. Let's take a look at some of these common real estate myths and the actual truth.

For Sale by Owner Will Save You Money

One of the most common myths we hear is that selling your home For Sale by Owner will save you some money. The prevailing thought is that you will save on realtor fees, getting you more money. However, this negates the fact that you are missing out on the experience and knowledge provided by a real estate agent.

Without an agent to guide you, selling your home may take much longer. You also may not price it effectively, which could result in you receiving less than you would have made otherwise. In fact, research has shown that homes sold with agents tend to earn more. In 2020, the average home sold by an agent earned $295,000 while the average home sold by owner earned $217,900, a huge difference.

All Homes You See Online Are Available

One thing that surprises many people is that homes listed online are not always actually available. There are a few reasons for this. Major websites like Realtor and Zillow are what we call real estate aggregators. They take information from Multiple Listing Services, public records, and other sources in order to identify homes for sale.

This process often leads to a bit of a time lag. Thus, a home could have sold before these aggregator websites realize it. This results in them having many listings that are no longer on the market. While it is likely that a home you see online is for sale, it isn't always true, particularly in a hot market. Always double-check with your realtor who can verify and setup a viewing.

Real Estate Agents Are All the Same

One thing many people seem to think is that hiring a real estate agent is all that matters as one agent is essentially the same as the next. This is a huge myth. There are many differences when it comes to real estate agents. Some agents may have specialized knowledge in different geographic areas or focus on working with a particular type of buyer.

Additionally, there are certainly differences in terms of communication styles and personalities. Thus, it is important to find an agent that would be a great fit for you. Chatting with a few agents and looking at reviews are good places to start.

Making a Low Offer Allows for Negotiation

This is good advice in many settings; however, when it comes to buying a home, it can actually hurt you. When you are buying a car, making a low offer definitely gives you some room to negotiate. However, this is not the case when it comes to buying a home. There are several reasons for this.

First, making too low of an offer may cause the seller to completely turn you down instead of countering. Additionally, there are often multiple offers, which means your low offer will likely be quickly discarded in favor of someone else. Ultimately, while this tactic could save you money, it is more likely to result in you missing out on your dream home.

A Home Will Either Pass or Fail Inspections

Buyers generally want to get an inspection in order to get a sense of the overall stability of a home's structure. This is a good idea and can help with negotiating. However, some buyers are under the impression that a home will either pass or fail inspection. This simply is not the case.

An inspection essentially details the overall condition of a home. It will list problems that are found such as things that are not up to code or things that are damaged. An inspection will also estimate the amount of life left on major components such as the roof, HVAC, and plumbing. It is informational in nature and will not outright pass or fail a home.

We Are Here to Answer Your Questions

At Town & Country Realty, we know that you probably have questions when it comes to buying or selling your home in the Fargo/Moorhead area. We are always happy to chat with you and answer any questions that you have. We welcome the opportunity to help you sell your home or find the home of your dreams. Contact us today to get in touch with one of our wonderful agents!