9 Common Real Estate Myths of Buyers and Sellers

While there's a prevailing belief that buying without a real estate agent will save you money, the truth is you're almost always better off working with a pro.

Buying or selling  house is not something most of us do every day. You may do it once a decade, or even once in a lifetime. Despite the fact that most of us enter the world of real estate only rarely, we all think we know how it works, based on the experiences of friends and family members, stories we have heard and things we have read.

Set your home price higher than what you expect to get. Listing your home at too high a price may actually net you a lower price. That's because shoppers and their real estate agents often don't even look at homes that are priced above market value.

You can get a better deal as a buyer if you don't use a real estate agent. This is so not true. If the house is listed with a real estate agent, the total sales commission is built into the price. If the buyers don't have an agent, the seller's agent will receive the entire commission.

You can save money selling your home yourself. It's not impossible to sell a home on your own, but you'll find that buyers expect a substantial discount when you do, so what you save on a real estate commission may end up meaning a lower price. It's not impossible to sell your home on your own for the same price you'd get with an agent, but it's not easy.

The market will only go up. In recent years, homebuyers and sellers have experienced a time of increasing home values, then a sharp decline during the economic downturn and now another period of increasing values. The recent recession should have reminded everyone that real estate prices can indeed fall, and fall a lot.

You should renovate your kitchen and bathroom before you sell. If your kitchen and baths work, a major remodel could backfire. Prospective buyers may not share your taste, but they don't want to redo something that has just been renovated. What you can just do instead is to upgrade it a little or to adjust the price of your home. 

You'll earn back what you spend on renovations. If you fix the heating and air conditioning system or roof, you will sell your house more quickly, but you probably won't recoup what you spent. The only renovation that is likely to net you as much as you spent is a new front door. In renovations, very few things will give you great returns. 

All the properties listed in the multiple listing service show up online. Your agent must choose to let the listings show up online. Most do, but it never hurts to verify that yours will.

Open houses sell properties. Homes rarely sell to buyers who visited them during an open house. It won't hurt if you or your agent will chose not to have an open house. Although holding a broker's open house for other agents may be worthwhile.

The agent who shows you homes or lists your home represents your interests. This might be true or not. Most brokerages require buyers and sellers to sign a form indicating that they understand whom the agent represents.

The point is... 

Myths are just myths. If you are not sure of anything, always ask a professional. They are here for a reason. Don't just conclude and don't make these things hold you back.