MYTHS ABOUT REAL ESTATE

By February 5, 2021News & Events

The real estate industry is often seen by people to have certain mysticism about it and far too often I hear negative remarks made about the profession I LOVE. I find it troubling that society can be very quick to blame the agent for so many things, but they don’t take the time to understand the full picture. A classic example of this is when an agent asks for your ‘best offer’ and the buyer presents an offer $40,000 less than the asking price, knowing full well that the sellers will be unlikely to consider this. The agent is asking this because they don’t want to waste your time, or their clients. At the end of the day, we want the property to sell as much as the buyer, because then we get paid.

Over the years, the non-real estate world has come up with some wild ideas of how the industry operates. Some of them might be true, but here are my top 5 that aren’t:

All real estate agents are rolling in money

Some real estate agents are definitely rolling in money. But not all.

Like any profession with a focus on commission, average salaries only tell half the story.

Some agents may be more than happy to work no more than eight hours a day, five days a week, and be content with the income that comes with that, while others are more willing to sacrifice weekends and evenings to see their commissions soar.

While some agents will earn much more than others (based on a multitude of factors like the value of the sale and local area expectations), it’s most certainly wrong to assume every agent is getting around in a Rolls-Royce. ‘Irrespective of anyone’s salary, true wealth is not how much you make, it’s how you spend your life.  While some agents may ‘make’ a lot of money, it’s the ones that budget their money that often do well over time.  You don’t need to look ‘flash’ to have the ‘cash’.

Don’t sell in winter

While winter is often acknowledged as a cold market (literally), the Australian property market is now proving to be active all year round. Winter can be an ideal time to showcase your property without the competition of an oversaturated market.

An experienced and successful agent will craft a marketing and sales campaign that maximises the market for a great outcome, no matter the time of the year.

Property managers just collect rent

Property managers – at least the good ones – have a great deal more to manage than just the intake of rent money. An experiences property manager has the ability to pre-empt a situation and minimise risk to both the landlord and the tenant. Alicia Williams discussed the value of property managers in her blog.

Maintaining occupancy is the absolute top priority for a property manager, and this means constant inspections, liaising with potentially dozens of prospective tenants, and sifting through just as many property applications.

Property managers handle building insurance, smoke alarms, maintenance, fencing legislation, lease renewals, inspections, rent reviews, and more, and all the while acting as the liaison for all of their tenants and landlords. 

It’s impossible to buy your first home in today’s market

You’ve probably heard about first home buyers being squeezed out of the market, being beaten at auctions and finding properties within their price range are way below their expectations. Maybe you’ve even experienced this yourself.

However, there’s many opportunities available to first home buyers if you simply follow simple finance tips, take advantage of the first home owner’s grant and ensuring your expectations are in line with your finances and goals are keys to getting started in the market. Why not even consider building? There are so fantastic government grants available at the moment including a regional homebuilders grant of $5,000. 

 Selling your home yourself will save you money

Selling your property yourself will obviously save you the agent fees. However, while in a perfect world property selling might be as simple as sticking a ‘for sale by owner’ sign out the front and then popping the champagne, there is a lot more complexity and strategy involved than that.

While you can certainly sell your house yourself, a real estate agent has a toolkit of negotiation skills, marketing tactics and specialised experience that can get your property sold quicker and for a better price.

If you have further questions about real estate, get in touch with your local agent, or ask a friend who they have used in the past. We’re always happy to chat and walk you through the process involved. Our market knowledge of the local community comes from our passion and understanding of the whole of 4680. Give us a call to talk about how we can help you. 

Photo credit: Chrissy Harris

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