13 Myth about real estate in Kenya in 2018

1.Real estate agents are paid a salary

Despite what many think, the public is horribly confused about how agents make a living.

There must be a salary floating in the background that supports agents — after all, how is it that they can appear so well-groomed, professional and polished while hosting lavish broker events, open houses or other marketing activities, showing customers around town all day and buying them lunch?

Attention perpetual house shoppers and sellers just testing the market: the agent’s time and expenses are 100 percent on them.

 

 

2. The agent keeps all the commission

Everyone needs to understand that commission is legally paid to the agent’s employing company, which in turns pays the agent.

Depending on what side the agent is representing (buyer or seller), their brokerage will earn the listing or selling side commission.

No matter what the commission is, the amount paid to the agent is not the entire commission the company takes its portion and then the agent gets his or her split.

There are usually additional fees that come off the top of the gross amount of commission being paid.

 

3. The typical commission is 6 percent, right?

All commissions are negotiable and vary according to a variety of factors with type of property, price and such in my market.

Every market is different.

 

4.An agent’s transportation expenses are reimbursed

If only real estate brokerages had a “transportation fund” to reimburse agents for these things.

The trips to show a buyer homes when a new one hits the market.T he three days spent driving all over town with a relocating buyer who decides not to end up moving

The trips to a listing, prepping for showings, and continually checking on the vacant property; or meeting vendors contractors, photographers,  none of it is paid for by anyone but the agent.

 

5. Marketing expenses aren’t the agent’s responsibility

Think about the video production, 3-D tours, digital marketing campaigns, websites, broker open house events, the design and printing of brochures.

Marketing is done by — your real estate agent who didn’t ask the seller to contribute one dime, even after agreeing to discount commission.

 

6.A home passes or fails inspection

An inspection is meant to assess the condition of a home. An inspector doesn’t “pass” or “fail” a home.

They will provide a report explaining all issues along with a summary of the age of key systems such as plumbing, electric, and the roof along with an estimate of economic life remaining on those systems.

 

7.Weekends bring out the most serious buyers

Contrary to popular belief, weekends don’t usually bring out the most serious and ready-to-buy buyers. Open houses and other open-to-the-community events tend to bring voyeurs, nosy neighbours and curiosity seekers interested in looking at decorating ideas and how other people live.

The most serious showings tend to happen during the week. In many markets, it is usually too late to wait until the weekend to look at any properties of interest.

8.It is better to price a home on the high side as the seller can always come down

This is one of the most common myths in real estate. Sellers want to protect their asking price so they think overpricing it is an effective defence mechanism against selling too low.

Overpricing your home often leads to the home sitting and not receiving much interest. If a home is priced competitively from the beginning, the chances of attracting optimal traffic from the beginning greatly increase.

9.When making an offer on a home, you need to start with a low offer

Just as sellers make the mistake of overpricing, buyers often make the mistake of wanting to start with a really low offer.

Although there is nothing wrong with negotiating, if the home is priced within range, a very low offer won’t be taken seriously.

10.The longer a home has been in the market, the more negotiable the deal

Property that lags on the market is likely sitting due to its asking price as well as its layout, location or condition.

An awkward layout or poor location can also play a role. The seller may also be unrealistic about their asking price

11.Multiple price reductions mean the seller is desperate to sell

If a home has had multiple price reductions, that must mean the seller desperately needs to sell.

Price reductions are made to bring the property in line with current comparable, price it to be competitive or underprice it to help generate more interest.

When a seller has done several price reductions it means they are through with negotiation.

12.Multiple offers give the sellers an advantage

If a seller receives more than one offer and decides to counteroffer all buyers, that increases their leverage and the likelihood of selling for top dollar.

Maybe but maybe not.

Not every home is a must-have in every market, and there will always be another property that becomes available.

As a seller, if you play this card wrong, you could end up having the entire situation backfire and be forced to watch all the buyers walk away.

13.All agents are the same

No two agents are the same, nor is their approach to real estate. The people often put all agents into the same bunch and considers them a commodity without really taking the time to study the differences in their approach, presentation and achievements.

As in every profession or organization, there are those who are committed to excellence, devote endless amounts of time and energy to working with buyers and sellers and are highly adept problem solvers. Others simply march to lower standards and do the bare minimum to get by.

Just as some attorneys and physicians are better than others, so are real estate agents. Some are more resourceful, responsive and creative.

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