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5 Real Estate Misconceptions

green and black title graphic "5 Real Estate Misconceptions"

Whether you’re working towards your real estate license or continuing your education, many rumors circulate about real estate. Here are five real estate misconceptions debunked.

Agents Have a Lot of Time Flexibility

Because real estate is not a 9-to-5 job, you might think you have the power to work when you want. That’s not always the case. Your schedule as a real estate agent will depend on when your client is available. 

Often, you’ll have to work on weekends if that is the only time buyers can see homes. Messages and emails from potential clients will come at any time, so you must prepare to always have your phone on you. However, you can let your clients know of your scheduled availability or add an automated answering service to your phone.

You Only Need Your Pre-License Real Estate Course

The Massachusetts pre-license course teaches the basic principles, practices, contracts, and requirements of real estate. While you’ll learn all the necessary steps of a real estate agent, you won’t know how to succeed in the business. For example, you’ll independently have to figure out how to find your first clients and referrals and how to keep your clients.

To keep your license, you need to keep taking classes. Fortunately, we offer steps for continuing your education. Between online video and live classes, you’ll find topics like buyer agency, real estate brokerage ethics, elements of an offer, disclosures, advertisements, and much more.

Agents Always Make 6% of the Commission 

In general, the commission rate from a home sale is 5%. From there, the agents from the buyers and sellers divide the percentage to a total of about 2.5% each. Massachusetts commission rates typically sit under the average at 4.85%.     

Sometimes, sellers will find discount brokers with a commission fee lower than 4.85%. Because of this, don’t always count on the commission percentage when selling a house.

Renovating Before Selling Increases Home Value

Home improvements won’t always promise a higher value when working with clients who want to sell. Of course, it can help in some instances with the value. However, before your client thinks about putting any money into repairs or remodeling, have them examine the investment first.

The Winter House Market is Bad 

While the spring season is popular for many homeowners who want to sell, you’ll still find clients looking for a home in the winter. Many sellers don’t want to put their house on the market during this season because of the bad weather. With fewer house listings, the market will stay competitive for buyers who need a home. 

Don’t deter clients from wanting to sell their homes in the wintertime. Some clients may have no other option than the winter to sell their home because of job changes, personal matters, or other factors.

From flexibility, courses, commissions, renovations, and winter housing markets, there are always assumptions about what works well in the real estate industry versus what does not. While there are many misconceptions about real estate agents, there are always new things to learn about the industry. If you have any questions on the realities of the real estate industry, contact us.

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