Top 10 Real Estate Myths

Myth: Open Houses sell my home!
Reality: Less than 1% of all mls listings nationally sell through an open house. Most consumers really believe that an open house is the best way to sell a property because they can "see" their agent working, doing something tangible. However, seasoned agents will be the first to tell you, opens are not effective in selling a minnesota mls listing. On the other hand, open houses are a great way for agents to pick up more buyer business. You will find a lot of new agents that enjoy doing open houses to build their respective businesses.
Myth: I need a real estate company in my area, and I want this company to "sell" my home!
Reality: Your listing agent does not "sell" the home. He or she is responsible for marketing the home and bringing you prospective buyers. In this internet age of Minnesota real estate, an agent also does not need to be based out of that city or neighborhood to be able to generate a lot of buyers for your home. The key really is to work with a high powered listing agent that markets your property. What sort of marketing strategy do they have? Do they use the internet, radio shows, TV to market your home and get buyers searching on the mn mls? How will they bring you buyers?
Myth: I can always drop my price.
Reality: The first six weeks you are on the Minnesota real estate market are the most important. During this time period, you will find the most number of qualified buyers who are looking at your property. If you are overpriced, the MN real estate buyer generally does not come back after you have lowered the price. Really the first month you are on the market is like your own "movie premiere." Pricing the home correctly so a buyer responds during this first month is essential!
Myth: I'm going FSBO to save money; I can sell my home myself!
Reality: Statistics show FSBOs historically end up getting a lower sale price to list price than a normal seller would. FSBO sellers also learn how complicated the real estate transaction can be. Having an agent who can guide you through the real estate transaction is crucial. For example, just because you have a purchase agreement that says you are closing May 1st, unfortunately does not mean that you are closing May 1st. What sort of financing or inspection contingencies are there with the purchase agreement?
Myth: My agent never showed my home!
Reality: Your agent's job is to market the home, bringing in prospective buyers, and also guiding you through the real estate transaction. Most of these buyers are already working with a buyer's agent of their choosing. Again, whoever you hire to sell the home, is ultimately responsible for getting prospective buyers to see the home. It is very rare where the agent you are hiring to sell your home, happens to have a buyer who specifically wants your home. It can happen, but it does not happen that often.
Myth: I need you as my agent to be at all of the showings to point out the nice features of my home!
Reality: Buyers do not like the listing agent to be present. It creates an uncomfortable atmosphere. The buyer likes to take their time on their showings, and view the home at their own pace. It also gives them an opportunity to discuss what they like or do not like about the property without feeling like they may offend the seller.
Myth: If I go with a lower commission, I will save money.
Reality: Discount brokers historically have brought a lower sale to list price percentage than a full service broker. In this market, you need to hire an agent that is going to spend some money to market your home. In the Twin Cities in 2007, four out of ten homes on the MLS sold. Do you want to hire an agent with a commission rate that allows him or her to market the home? Or do you want to try to "cut corners" and hope that your home does not need to be advertised and marketed in order to be sold?
Myth: I had 50 showings, but my agent just couldn't "sell" the home.
Reality: Your agent's job is to market the home to get those 50 showings to happen. The home however, priced correctly, sells itself. Many sellers do believe their agent's job is to "sell" the home. Top agents know their job is simply to get the clients in the door….if the home is priced to move, the buyer will recognize this and make an offer. Remember that buyer's have already looked at numerous homes. They know a good value when they see one. They also know an overpriced home when they see one as well.
Myth: If I buy without using an agent, I will get a better deal.
Reality: Your buyer's agent can run "comps" for you on the property you like to make sure it is priced correctly, and that you are not overpaying. I have heard many horror stories of buyers going in to a purchase agreement unrepresented. He or she then ended up writing up an offer for substantially more than the property was worth. They of course did not find this out until they called the agent back up, looking to sell the home after a couple years of owning it. And unfortunately, they realized they paid way too much for the home at the time of purchase.
Myth: I can save thousands by going with a lender off the internet.
Reality: Read the fine print. Many of these internet brokers do not have lower closing costs. What's worse, many end up not being able to get the loan closed when the time arrives for closing. At the end of the day, this is all you want as the buyer: have the money show up so you can close!

Why we chose Alex Anderson from The Minnesota Real Estate Team as our realtor: We were impressed that she took the time to meet with us over lunch. She was very easy to talk to and comfortable to be around - yet obviously very professional and knowledgeable. Alex was also low pressure and very willing to help us in any way we needed. Benefits of working with Alex: As a first time home-buyer, we really needed to be guided through the process. She was excellent at keeping connected with us for the lengthy time we waited out our lease - right through all of the negotiations and to the purchase. Alex was willing to take the time to talk through all of the steps and the paperwork with us and answered any and all questions we had. We felt very comfortable in knowing that she was so easy to talk to, easy to get a hold of, and very responsive. We felt confident going into the closing knowing that she would be right there with us. Keep doing what you are doing Alex - you do a fantastic job for your clients! - Joann & Craig Komanecki, St Paul, Minnesota