Home Buying a Home Myth vs. Reality: Busting 3 Real Estate Myths

Myth vs. Reality: Busting 3 Real Estate Myths

by Eric Rothman
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There’s a prevalence of old information when it comes to buying and selling homes in today’s digital market. Let’s set the record straight. Here are some myths and realities when it comes to the MLS, the role of the agent and selling seasons.

1) You Need the MLS to Buy or Sell a Home

Myth: The Multiple Listing Service (MLS) was established by real estate agents for real estate agents. Sellers’ agents list homes to attract buyers’ agents, and both take a cut — usually splitting a 6% commission on the sale price.

Agents would have you believe that the MLS is an indispensable real estate tool, but REX has found a better way: by using the internet to market like consumer products companies.

By leveraging the latest digital marketing and advertising tools, REX brings homes directly to interested, qualified buyers at sites like Google and Zillow, where almost half of the buyers go first. REX is cutting out the middleman, the MLS, to sell homes faster, and for a low 2-2.5% commission.*

43% of buyers found the home they purchased by themselves online, compared to 33% who found it through a real estate agent.1

2) Using a Traditional Agent from a Large Agency is a Must

Myth: Having a great agent by your side is a must. But staying with tradition, choosing a big brand agency, hiring an agent based only on a recommendation and paying large commissions is a byproduct from days long gone.

40% of people were referred to their agent through (or is) a friend, neighbor or relative.1 But you should vet that referral through the same research and background checks you would for a nanny or hotel. Look for their reviews, see where they are marketing their homes, talk to past clients, and ask them to see an example marketing plan.

With today’s buyers finding their own homes online, it’s critical that your agent be a digital marketing pro.

The reality is that in a traditional agency all of the agents might share one digital person and their tactics will largely revolve around listing on the MLS, putting your home on their website, and other traditional advertising. 

Being a neighborhood expert and having connections to buyers is not proprietary. So we recommend choosing an agent with multiple, incredible references who stays on top of marketing trends and is dedicated to getting you the best results.

Listen to some of our customers talk about their experience using REX:

3) Spring Is the Best Time to List Your Home

Myth: Many real estate agents will tell you that to sell your home fast and for top dollar, you need to list it in the spring.

We think it’s a myth. And while it’s true that spring sees the most house-hunters, the truth is that real estate is a year-round business. In Southern California, that’s especially true for two reasons. One, the market itself is red-hot, meaning there is pent-up demand regardless of the season.

And two, it’s always sunny in Southern California, meaning there’s no loss of curb appeal in the winter months and there’s no rain or snow for buyers to contend with while going to open houses.

What sellers want are serious buyers, and they shop all year long. In fact, if you list your home in a lower inventory month, the interest from a just-right buyer may be greater as lower inventory means there’s less to choose from.

*2% or a minimum of $9500.

1 National Association of REALTORS®, “Home Buyer and Seller Generational Trends”, 2015.

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