Scott's Weekly Column

Real Estate myths

The real estate profession is one of the oldest in the world, yet it remains one of the most misunderstood industries. Because information is so readily available and widely reported everyone has an opinion, some of it informed and well researched other opinions are less about facts and more about personal interpretations.

This week I would like to explore a couple of the common real estate myths:-

Out of town buyers: - We often hear the phrase “I need a Sydney or Melbourne buyer because they have more money therefore they`ll pay me more for my home”. Whilst it’s true that metropolitan buyers probably have more money in their pocket it doesn’t necessarily translate to them paying more money than local or other buyers. Nowadays every buyer can research a wide array of information about the market place, whats selling, how much is it selling for etc etc. Just because someone is from a city and has more money in their pocket doesn’t mean that they are any less intelligent or informed about the local market or that they are happy to pay over market value.

Franchises get buyer referrals: - This one has been around for decades and was one of the biggest reasons that franchise offices started out 30+ years ago. The advent of the internet has destroyed this myth, I should know as I was a partner in a franchise office for 10 years and hardly saw a referral in all that time. Over 90% of buyers now use the internet as their first source of enquiry. Regardless of what brand is selling the property they simply call the number of the agent that has it listed for sale. It’s what happens after the phone call is received that makes the difference between the top agents and the lesser agents not the name of the brand.

A cheap agent will save me money: -  If a lesser agent can’t compete with the top agents on service, results, market knowledge, technology etc the first and only thing they can do is cut their fee. If an agent can’t negotiate a proper fee for their own service, then how are they going to negotiate the best price for your property? The difference in commission between a top agent and a bottom agent may be a few $$ hundred or a couple $$ thousand but the difference in the result a top agent can achieve could be ten times that amount in your pocket.

Have a great month!!