A myth can be defined as "any invented story, idea, or concept." Ever watch that show, I think on TLC Channel, Myth Busters? I love that show!! Myths exist regarding so many ideas and concepts, and Real Estate has not escaped it's fair share. And, just like Adam and Jamie from Myth Busters, I'm going to "de-bunk" the top 10.
1. All Real Estate Agents are the same: Huh. This is an unfortunate myth which can lead to Buyers and Sellers choosing the wrong realtor to represent their real estate interests. Every single Realtor has different skills, different experience levels and different traits. For example, A realtor who has been trading real estate for 2 years and who's primary business is done downtown Toronto, representing Buyers and Sellers in the condo world, is not going to have the same skill set or experience of a Realor who has 20 years of experience selling rural properties and farms. Also, take into consideration of the significant difference between Realtors who work with Buyers, and Realtors who work with Sellers. The saying "all men are created equal'" does not apply to Realtors.
2. All Realtors Make a Boatload of Money: Sure, successful Realtors can make a very nice income. But...the amount of time, effort, and money that top producing Realtors need to put forth is HUGE. So, lets de-bunk that one, All Realtors DO NOT make a boatload of money. There seems to be a common belief, or myth that Realtors earn 6% of the sale price of a property, no matter what. This is definately not true. Commission is negotiable. There are tons of factors taken into consideration when deciding what a Realtor will earn. Lets assume Mr. Seller is willing to pay 6% of the sale price of their home. Typically what happens is that 6% is then divided between the listing and selling brokerages. The Brokerages each take a "cut", (remember, it costs a Realtor to work with a particular Brokerage. We pay what we call monthly "desk fees", as a whole we contribute to the income earned by our support staff, monthly charges by our Brokerages...we don't hang around for free!) then they distribute the balance between the Realtors involved in the deal. From this point I think most people stop thinking about anything other than the big fat cheque their Realtor is depositing into their account. They really don't stop to think about the costs incurred, payments required when you work in real estate. Items such as private health insurance, because we're independant contractors, we may work for world renowned Real Estate Brokerages, but we don't have employee benefits, we're not employees. Then theres gas, car maintenance, advertising expenses, possibly a paycheque to an assistant. There's sometimes not a lot left at the end of the day.
Next Blog....to be continued