It is true that there are many notions about the business development of the real estate industry, but most of those ideas are actually misconceptions. Most people have this general idea of what the industry is like and some people actually have difficulty trusting agents because of these misconceptions. We hope that this post serves as an enlightenment tool and provides further insight into the real estate industry.
The industry is only based out of buildings
While it is true that real estate agents do have offices in actual buildings, this kind of misconception stems from the time when agents had to rely on phones in their offices to speak with their clientele. Those days are long gone. With the advancement of the internet and cellular phones, many agents use media as their way to reach out to clients. It makes communication so much easier, especially with the continuing evolution of smartphones.
A newer agent will not know a thing about real estate
This is not true at all. In a previous blog post, we spoke about certain agents getting a real estate license in 48-hour courses. You may want to avoid someone who just got their start in a course like that and is offering their services, but there are so many agents that have had many hours put into studying for their license. They did so much research to get where they are. Remember, everyone has to start somewhere! Someone who is newer will most likely give exceptional customer service and spend time with you as a client. Don’t be afraid to give a newer agent a shot.
The real estate industry is a pyramid scheme
Some real estate businesses have multi-levels that depends on how many houses sold, but these agents legally work to find homes for the client. They are not illegally trying to recruit people, in order for them to recruit more people like in a pyramid scheme. The key word to remember with a pyramid scheme is that it’s not legal in countries like the U.S.
The market is always flourishing
This is not true. If you follow any kind of market, you’ll notice there will be seasons where the sales are massive and increasing exponentially (for some, that would be during holidays). The real estate market is cyclical, in the sense that it goes through a constant circle of thriving and decreasing. It is best to know when these seasons rise and fall to get a better idea of how your local real estate market works.
Real estate agents must find homes based on your demands
This misconception just might stem from reality TV, and it can give someone the wrong impression. In TV real-estate, the scenes are feigned to a certain degree. If you see a buyer complaining about the agent not showing the houses they want, and they demand the agent to do their bidding, then it’s probably fake. No agent wants that kind of relationship.