Real Estate Myths Debunked by the Pros!

In this episode of The Closing Table, we shared some crazy real estate myths debunked by the pros!

To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…

Here’s what you missed…

One common misconception is the belief that a large down payment is required to purchase a home. “Don’t let the idea of a big down payment scare you off,” an agent advises, pointing out that there are loan options available that require as little as 3% down. Similarly, sellers often think that overpricing their homes will help them secure a higher profit. However, an agent warns, “Overpricing your home can actually hurt your chances of selling.” Buyers are well-informed and can easily spot overpriced properties, which can lead to fewer offers or even prolonged time on the market.

When it comes to selling a home, an agent recommends pricing competitively right from the start. “I suggest pricing it slightly under market value,” they explain, as this strategy increases visibility and attracts more potential buyers. Moreover, they caution that the highest offer is not always the best. Factors like contingencies and terms play a significant role, and an offer with fewer contingencies may be more advantageous in the long run.

Many people equate Realtors with used car salesmen, a stereotype the speaker actively works to dispel. “I didn’t get into this profession to be a used car salesman,” they explain. Realtors aim to guide clients through one of the most significant purchases of their lives, and building trust is essential. “I’m not here to sell you anything,” they add, emphasizing that a Realtor’s role is to advocate for their clients and understand their unique needs.

Energy levels play a crucial role in customer interactions. An agent reflects on how low energy can send the wrong message: “This guy doesn’t care, he doesn’t care about me.” Clients can easily sense when a Realtor is disengaged or going through the motions. Finding the right balance in energy is key to building trust. “You’ve got to find that balance,” the speaker advises, as a normal, authentic conversation fosters a deeper connection with clients.

Salespeople often battle negative connotations, with many assuming they have hidden agendas. “That label comes with a negative connotation,” the speaker notes. Transparency is essential to overcoming this perception. “If I don’t know all the factors, I can’t help you in the best way possible,” they explain, stressing that being forthright allows for better service and trust-building.

Next, one admits to initially being skeptical of real estate agents. “I was more dismissive of the real estate agent,” they share, acknowledging how past experiences can shape perceptions. One amusing anecdote highlights the unpredictability of the job: “She came out with no pants on,” a story illustrating how real estate can lead to unexpected situations. Based on their experiences, an agent advises interviewing agents before selecting one to ensure the right fit.

Another prevalent myth is that real estate is easy. “One of the biggest myths people believe about real estate is that it’s easy,” an agent remarks. There’s a perception that agents “sit back and collect checks,” but in reality, the job involves a great deal of behind-the-scenes work. The agent then compares their efforts to a duck gliding on water: “My feet are like this under the water,” alluding to the hidden stressors and challenges agents face while maintaining a calm exterior.

Effective communication is central to client relationships. “No communication equals bad communication,” an agent asserts, emphasizing the importance of keeping clients informed throughout the process. Clients need to understand that real estate transactions involve many pivots, and it’s the agent’s responsibility to demonstrate their value by showing how they navigate these complexities.

As agents gain experience, their value to clients increases. “My value now is much higher than when I started in the business,” they noted. While new agents may have the same credentials, they often lack the hands-on experience that allows for more effective advocacy. The agent encourages the general public to conduct interviews with agents and ask questions to ensure they’re working with someone who has the necessary experience and knowledge.

Real estate agents play a significant role in the community. “We have a huge impact anytime someone buys or sells a house,” they explain, noting the financial and employment implications of their work. Agents often become essential resources for their clients, providing support and guidance during critical transactions. “It’s kind of like a lawyer—you hate them until you need them,” they joke, highlighting the vital role agents play when it matters most.

They also reflect on how their success in real estate has allowed them to empower others. They employ various individuals, including maids and landscapers, and take pride in supporting their local community. One example involves a maid who provides free cleaning services twice a month in appreciation for the consistent business she receives from referrals. The agents actively promotes their service on social media and emphasizes the importance of supporting those who contribute to their success.

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