The Agents Keep the Commission
This is one of the most common myths that the general public usually believes. This is wrong, the commission that they receive goes to the brokerage company which they work under after the brokerage charges are taken, the agents are paid their part of the cash. The amount the agent receives also depends on his performance and his business model. They do not get paid once every three weeks like the others; it varies from time to time.
Real Estate Investments are Risky
Among the savvy investors, there is a common myth that investing in real estate is very risky. The very nature of investing in real estate is precarious but other than the place or its physical features, the market which it is associated is with is not volatile when compared to a stock exchange. You do not have to worry about losing money as the market associated with real estate is pretty stable. Another assurance you have is a roof to live in; there is no other industry which has a perk like this. Real Estate is much lower in volatility when compared to the stock market.
Real Estate Agents are Paid Salaries
There is no fixed and uniform salary payment for agents in the real estate market. When an agent takes you around, buys you lunch, answer all your queries, drive you to the house, remember that it is all on their expenses. It should be noted by perpetual house hunters that you would be wasting an agent’s precious time, by just going through a house without any decision, this is why you should have specific criteria in mind before going house hunting, this helps them find a bit more particular home for you.
You Need to Be Rich to Invest
There is this widespread myth that you need to be financially well off to purchase a house; this is far from reality as the majority of the real estate buyers use home loans to buy a property. This home loan covers around 80% of the house’s value, and you have to put in the rest 20%. The 80% that gets loaned can be paid back to the bank in periodic EMI’s. It is very rare to see a person buy a house straight in cash; this is usually the multi-millionaires who indulge in particular investments or multi-million-dollar mansions.
The Home Inspector grades a Home
It is a common belief that a house inspector usually grades a house to a “fail “or a “pass”, this baseless as a house inspector usually inspects the house and provide a complete report from plumbing to roof.