14 Common Misconceptions About Business Development
It is true that there are many notions about the business development of the real estate industry, but most of those ideas are actually misconceptions. Most people have this general idea of what the industry is like and some people actually have difficulty trusting agents because of these misconceptions. We hope that this post serves as an enlightenment tool and provides further insight into the real estate industry.
The industry is only based out of buildings
While it is true that real estate agents do have offices in actual buildings, this kind of misconception stems from the time when agents had to rely on phones in their offices to speak with their clientele. Those days are long gone. With the advancement of the internet and cellular phones, many agents use media as their way to reach out to clients. It makes communication so much easier, especially with the continuing evolution of smartphones.
A newer agent will not know a thing about real estate
This is not true at all. In a previous blog post, we spoke about certain agents getting a real estate license in 48-hour courses. You may want to avoid someone who just got their start in a course like that and is offering their services, but there are so many agents that have had many hours put into studying for their license. They did so much research to get where they are. Remember, everyone has to start somewhere! Someone who is newer will most likely give exceptional customer service and spend time with you as a client. Don’t be afraid to give a newer agent a shot.
Shows on TV are the best for real estate know-how
Shows like, Love It or List It, on HGTV are not even a fraction of the reality of what real estate is. Those shows are heavily edited, staged, and amped up with drama to keep viewer ratings. While reality television has opened up real estate to many viewers, it is not the authority on the way the real estate business works.
The market is always flourishing
This is not true. If you follow any kind of market, you’ll notice there will be seasons where the sales are massive and increasing exponentially (for some, that would be during holidays). The real estate market is cyclical, in the sense that it goes through a constant circle of thriving and decreasing. It is best to know when these seasons rise and fall to get a better idea of how your local real estate market works.
An agent becomes a success overnight
Agents take years to build up success and have a clientele. It is the same with any business and not only for real estate. You can’t expect an agent to go from rags to riches overnight. All of the best came from zero to top.
The real estate industry is a pyramid scheme
Some real estate businesses have multi-levels that depends on how many houses sold, but these agents legally work to find homes for the client. They are not illegally trying to recruit people, in order for them to recruit more people like in a pyramid scheme. The key word to remember with a pyramid scheme is that it’s not legal in countries like the U.S.
Zillow and Trulia are the only trustworthy items in the business
While these applications are helpful and provide detailed explanations of the real estate market in your local area, they are not the agent. They cannot act as one either. They are only there as a tool to help you further your research and help you find that perfect home for you and your family. Besides, just because the mortgage per month says that it’s $1,351 per month does not mean that’s the case. Or just because the house you want says that it is in a trustworthy neighborhood might not mean that it is. You need to know your local area and market especially well before trusting something like these websites.
Make a really high price to start off with, the buyer will go down and you can find a reasonable price there
For sellers, if you price your home too high, you won’t be getting any bites. People do their research before buying a home. If you have a house valued at 350,000 and you are pricing it at 450,000 with the hopes that a buyer will bring the price down, it’s going to sit for ages and not sell at all. Make sure to keep it priced reasonable and the traffic will begin coming in a lot more frequently.
Making too low of an offer
That will not help the seller in any way and they’ll probably just go to the next person who has a nicer offer. The key to an offer is to keep the price in the same ballpark or slightly higher. Don’t fall into the trap of haggling with someone trying to sell a house. It doesn’t work as easily.
All real estate agents want is money in their pocket
You find greedy people in every business, but that is not all people in a business like real estate. Many real estate agents care, genuinely, about the welfare of their clients. It’s not all about finding the best house that will give the highest commission. It is about making a dream a reality for someone who wants a better life for them and their family.
Real estate agents are all liars
Many people believe this generalization for some reason. This might be the case for some people, but just because some agents are untruthful does not mean that all are. Many agents, like Kimberly Kelly, are truthful and honest and genuinely care about their clients. They provide the truth and their honesty is received well.
The customer is always right
Many people don’t do their research and it can be quite the headache for some agents, especially when the customer is being difficult to work with. But in the business of real estate, the customer isn’t always right and trusting an agent’s knowledge is crucial to finding a good home in the market.
Spring is a good time to sell your home
The best time to sell a home is actually during the season when the market inventory is low like in the dead of winter. More people are looking to buy homes during this season.
Real estate agents must find homes based on your demands
This misconception just might stem from reality TV, and it can give someone the wrong impression. In TV real-estate, the scenes are feigned to a certain degree. If you see a buyer complaining about the agent not showing the houses they want, and they demand the agent to do their bidding, then it’s probably fake. No agent wants that kind of relationship.