Myth-Understandings

Consumers’ infrequent use of the real estate system contributes to a lack of understanding of its workings.

They are bombarded daily by lawn signs, advertising, media articles, junk mail, agents' personal marketing material and neighbourhood hear-say.  

Most who buy or sell a house pay more attention to features and price than to how the system works. This creates fertile ground for sprouting widely-held beliefs that have little basis in fact.  Among them:

·        The agent who lists your house actually sells it. Not usually, but because the listing agent is the main point of contact, the name on the lawn sign and the name in any advertising many assume that’s who sold the house. In the majority of cases the buyer comes with a co-operating REALTOR® from another brokerage through the MLS®.

·        One brokerage brand is better than another. Available technology has leveled the playing field to a large extent so that large and smaller brokerages and individuals have essentially the same tools with which to work.

·        The more advertising the better. If it was this simple, why would consumers use real estate agents? Advertising responses seldom result in the sale of the advertised property, but may result in a future sale for the agent. Agents advertise properties as a prop for personal marketing, sometimes to placate an anxious seller, and sometimes to be seen as doing something. Most sales occur because of the co-operative marketing power of the MLS®, not because of public advertising.  

·        The agent determines the selling price. Not so! The selling price is determined by market conditions, particularly what buyers are currently paying for similar properties in the same neighbourhood.

·        Public open houses bring buyers. It happens occasionally, but public open house events usually bring the curious, the bored, those who aren’t ready to buy yet, crooks who want to check out your possessions, people who are out for a winter walk and need to warm their cold toes and fingers, those seeking decorating ideas, etc. Open houses mainly benefit the agent who is looking to meet prospective clients, or needs to placate an anxious homeowner.

·        Number of agents in a brokerage is important. Not so much. The MLS® gives all member agents equal opportunity and incentive to sell your house.