Have you noticed that the news headlines seem to be very doom and gloom about the economy lately? It’s true that interest rates and inflation are on the rise, but conditions are not nearly as bad as you might think. Right now, we are enjoying a strong economy that is recovering well from the pandemic restrictions of the last two years. To top it all off, unemployment rates are at a record low of 4.9% as of July.

Nevertheless, the uncertainty has hit the real estate market. Yes, housing sales are down from the boom we experienced in the winter. Relatively speaking, however, the market is still strong.

Whenever there’s a change, some people begin to wonder if they should use the services of a real estate agent when buying or selling a house. The temptation to forgo a Realtor is clear. The average home in Burlington now rivals that of Toronto at nearly $1.3 million. 

At that price, even the lower commission at a discount brokerage seems expensive. It’s times like these where professional expertise is even more critical.

The best part is that working with the right agent doesn’t necessarily cost you money. They can, in fact, help you earn or save far more than you would ever pay out in commissions. 

Let’s examine some of the facts versus fiction about working with a real estate agent.

Fiction: I’ll earn more when selling my house if I do it alone or by using a low-commission agent.

Fact: The old adage is true. You get what you pay for. 

When selling on your own, the slightest mistake can cost you thousands of dollars or even lose you the deal altogether. In the worst case scenario, you could land yourself in some legal hot water. 

In this market, buyers are hesitating. Some are even trying to back out of their deals as prices drop. 

Effective negotiation and comprehensive marketing are essential to your success. An experienced and savvy homeowner might be able to pull it off. However, you’ll still have to pay the buyer agent commissions, and the lawyer fees are often higher for For Sale By Owner (FSBO) transactions. 

Information is power when it comes to a successful real estate transaction. Here are some other resources that can help you achieve your goals:

• Conditions and Clauses on a Real Estate Contract
• How To Stand Out In A Changing Market
• What Happens When a Buyer Breaches their Contract?

Fiction: I can sell a house by myself in my spare time.

Fact: Maybe it isn’t all about the money in your case. But how much is your time worth? 

Listing a home for sale is more complicated than it looks at first sight. There is research, home preparations, showings, marketing, photography, and staging. Trying to do everything is a full-time commitment. If you have a career, doing it all is simply exhausting. And at the end of the day, you’re likely to have even less money in your pocket than you would have if you had somebody to do it all for you.

Working with a local real estate expert doesn’t just make your life easier and protect you legally. Statistics show that an agent-assisted sale typically earns as much as 20% more than an FSBO property. 

Think of it this way: Your buyer probably has an agent representing them. Don’t you want somebody to advocate for your best interest?

Fiction: You should use your friend as an agent.

Fact: It’s understandable that you want to be supportive of your friend who may be just decided to get their real estate license. However, your home is your biggest investment. 

Buying or selling is an emotional experience and even if your friend is a true professional, the stress can ruin a personal relationship. Some people would say that you shouldn’t use your friend to sell your house any more than you should let them perform surgery on on you.

Fiction: All real estate agents are the same.

Fact: The boom of the last two years has attracted many new and inexperienced real estate agents to the industry. 

As a result, there’s been an influx of agents who only have experience working in prime conditions. 

They’ve never had to work in a cooling market, and they certainly never had to deal with a recession. 

Currently, there is a lot of buyer hesitation in the market. Selling a home successfully requires extensive negotiation experience and comprehensive marketing skills. Many new agents do not have these skills and they are struggling.

If you want to achieve the best results, use an experienced professional who has the tools and expertise to succeed in all conditions, not just when times are good.

Fiction: Real estate is a people business, so it doesn’t matter if my agent doesn’t have a web presence.

Fact: This myth is a pervasive one, because it contains a hint of truth. 

Real estate is, in fact, a people-driven business. A large social media following or flashy website isn’t everything. However, it’s important to remember that the world has changed dramatically over the last few decades. Nearly everyone begins their search online before deciding what to look at and whether they will schedule an in-person visit. Technology is here to stay, and your real estate agent should be well-versed in all of the tools to help you succeed. 

Are you ready to buy a new home? Here are some resources to guide you:

• Interest Rates are on the Rise. Should You Get a Fixed Rate or Variable?
• How To Win In A Multiple Offer Scenario
• The Hidden Gems of Burlington You Need to Know About

Fiction: Using a buyer agent will add to my purchasing cost.

Fact: You should always use an experienced agent when buying a house because it usually doesn’t cost you anything at all. 

The buyer agent gets paid by the seller after the house closes. You get all of the guidance and protection of a licensed agent at no cost. And an agent with rock-solid negotiation experience can help you save thousands on your purchase. 

There are many myths about working with a real estate agent, but we are happy to clear them all up for you. Feel free to reach out today with any questions you may have.