1. “All Real Estate Agents Are The Same” is Like Saying “All Lawyers Are The Same”
Real estate agents are licensed professionals who represent buyers or sellers in property transactions. Lawyers are professionals who represent clients or advise clients in litigation. When it comes to the client’s choice of a representative, you can think of a real estate agent as a lawyer. If someone thinks that a lawyer is like the rest, there is no need to hire an expensive lawyer, and the same is true for real estate agents. All real estate agents have different levels of qualifications and experience.
Another misconception is that all real estate agents make a ton of money. Gas, showings, marketing work, etc. are usually out-of-pocket expenses of the real estate agent. After putting all their out-of-pocket expenses into the process, once a house is sold, they will be paid through sales commissions. Then that commission is spilt between other buyers agents and brokers.
2. Zillow Does NOT Know All
Zillow is a real estate marketplace in the form of a website. One of Zillow’s key features is its Zestimates, a gauge for seeing how much homes are worth. Zestimates are not 100% accurate These estimates are based on information from sources such as physical attributes, tax records, and user submitted data plugged into a formula created by the online real estate database company.
An appraisal is a more accurate assessment of the current market value of a house, and is actually required by most mortgage lenders. Appraisals must be conducted by a licensed third party appraiser who has no connection to the buyer, seller or lender. In this way, all parties can ensure that the determined market value is not affected by any party that might have an unfair advantage. The lender usually orders the appraisal, but the borrower is the one who pays for it. Zillow’s estimation process is similar to appraisals, expect they are not as professional or in-depth.
3. A Home Inspection Is Not a Pass or Fail
Home inspectors are professional consultants who describe and report on a home’s current physical condition to indicate which components might need major repairs or replacements. The home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation. It is often in connection with the sale of a home, but the final report is not a pass or fail test. The final report of a home inspection is an objective list of items, different from a city or municipal inspection that is intended to determine whether or not home complies with local housing and building codes. In other words, the process of buying, selling, or living in a home can’t be halted by a home inspection.
What happens to the house after the inspectors leave does not depend on them. However, there is a due diligence contingency clause for people to withdraw based on the report. A contingency clause is a legal binding contract provision. For example, the buyer and seller sign a contract to protect the buyers right to cancel the transaction stipulated in the contract based on the results of the house inspection. In the case of an inspection contingency, a home can “pass or fail” in a sense.