busting-myths-resized-600-250x188“I have a friend who’s a real estate agent, and they told me you should ALWAYS _______. ” Go ahead. Fill in the blank. We’ve all heard plenty of ‘facts’ about what to do, or not do, when it comes to buying and selling real estate. Some are very true, some not so much – and some not at all. In fact, there’s really a pretty lengthy list of things we’d like to help set the record straight about. But for this week, we’re going to share our top 3 topics. We’ll follow-up soon with more in future blogs.

Myth #1: Rental Property Will Always Make You Money.

The truth is, if you know the market and purchase wisely, you can more than likely come out in the black on your real estate rental investment. While people tend to think big number returns (10-14%), when you factor in local conditions that affect tenant turnover, rental down time, and maintenance or improvements required, a more likely figure is a 6-7% return on your initial investment. Pay close attention to that first sentence, though. Research values, economic conditions, and market trends before you buy. Or you could be unpleasantly surprised at year-end.

Myth #2: Adjustable Rate Loans Are Always A Bad Choice.

In fact, not so much. The devil, however, is in the details – so you want to make sure you read all the fine print and fully understand how the loan will work: When it will adjust, by how much and how often, what the rates are based on, early payoff penalties, etc. For some people, it’s actually an expedient solution. Getting a mortgage based on a lower front-end interest rate can be a good thing, especially if you don’t plan to be in the home when the rate adjusts upward.

Myth #3: My Real Estate Agent Is Making Too Much Money Off of My Home.

In our experience, there are 2 kinds of people in the world: Those who realize how hard a Realtor works on their behalf, and those who don’t. However, it’s not simply a matter of effort, which can be considerable. (They don’t just put up an MLS listing and forget about it. It takes marketing and networking, communicating with Realtors and their buyers, and much more.)

But it’s also about how commissions are split, and often split again before ever reaching your agent’s wallet. While buyers easily calculate in their heads lump sums in 6% increments, consider how far that money has to travel before reaching your agent. Half of it goes to the selling office, and half to the buying office. Then each agent usually has a 30-50% split with their broker, whittling their paycheck further. When you add expenses incurred to sell a property (advertising, fuel, licensing fees), then subtract taxes paid on that commission – what’s left is a considerable amount less than you imagine.

Yet even with all that, your Realtor is the one person you can count on to be on your side, legally and ethically required to protect your interests in the purchase or sale of real estate. In reality, it’s a great value for all the work they do to get you the best price for your home – whether you’re buying or selling.

New Home Resource helps current and future homeowners with their Las Vegas real estate needs. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!