Buying a home is unlike any other purchase you’ll make. You can’t just enter a store and exit with your purchase in hand, nor can you simply buy one off Kijiji. Property is usually the most expensive thing a person buys in their life, so the process is considerably more involved.
That said, homebuying is less onerous than many people think! In fact, one of the most overwhelming aspects of buying real estate is all of the myths that come with it and deciphering what is true, and what isn’t.
To alleviate some of these pressures, we are debunking some of the common misconceptions in real estate:
Fees
Real estate agents don’t receive a salary, so their entire income derives from commissions. It’s also not true that their commission is locked in at 6% per sale. This may change according to various factors. Plus, agents need to split the commission in at least two ways. When homebuyers and sellers see all the people splitting these commissions and all the additional costs these real estate professionals incur, their fees seem vastly smaller.
There are also other fees that may be inflated or less necessary, that you may have been told are a must. It’s important to carefully consider any and all fees that are presented to you so that you know exactly what you are paying for, and what you are getting out of the exchange.
What you may not know is that some closing costs, as well as other fees, are negotiable – so be sure to talk to people who have gone through the process to better judge what costs are mandatory, which are negotiable, and which are unnecessary altogether.
Don’t Call an Agent Until You’re Ready to Buy
Some consumers shop in a brick-and-mortar store to scout a purchase in person before eventually buying it from an online store. Such an approach lets them see the product first-hand and enjoy help from a salesperson before getting a better deal online.
This approach doesn’t work in real estate! While homebuyers are right to want a deal, it’s not wise to skimp out on an agent’s services. You can save money throughout the process with the right real estate agent by your side.
They’ll ask questions and find problems you may not think of even looking for, and you must address these issues before signing any contracts.
Buying a Home is Complicated
Like any new process, it helps to have experienced help from someone on your side. That doesn’t mean that real estate is rocket science.
The digital innovator Regan McGee built his real estate tech platform Nobul to simplify the process further by using digital technology to pair homebuyers with the right agent sooner. As McGee explains in an interview, “People think buying and selling real estate is complicated, but that’s a way for agents to justify their fees.”
Buying a home may seem stressful and complex because a lot of your money is involved, and you’re new to the process. To experienced professionals who deal with these matters routinely, it’s not complicated at all.
The process of buying or selling real estate differs from person to person. Nobody has the exact same experience, but the expenses and complications aren’t as severe as you may think! Connect with the right agent from the start, and you’ll navigate the process smoothly before finding the home of your dreams.
