15 Real Estate myths we all fall for

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nmb

Well-Known Member
Hi John, Can you ever see the UK moving to a more US style commission system? There are numerous general trends which have eventually made their way over from the US to the UK.
 
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diyhelp

Active Member
I think there will always be a market for those who want premium services and extra help but it will get smaller as online competition grows and investors can do more and more themselves.
 
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Lory1pips

New Member
I think If you don’t know where to start, just pick one strategy — such as real estate direct mail marketing — and go for it. Give whatever campaign you choose everything you’ve got and then track your results. Once you’ve tried several strategies, you will discover which method delivers the best results – remember, every business and entrepreneur achieve success in a different way.
 
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Longterminvestor

Administrator
Great advice there and I totally agree, we all have different strengths and weaknesses. The key is to maximise your strengths and stay within your personal comfort zone.
 
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realdeals

Active Member
Commissions are a very controversial area and personally I think real estate agents do not retain anywhere near the rates we assume. As the article says they may receive a substantial commission but once these have been shared and costs taken into account the margins will not be huge. Do some agents live of the hype about large rates which builds their reputation?
 
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FWL

Member
In the early days especially there is not point in trying to be a "jack of all trades and master of none" - choose an investment strategy which really interests you and do some in depth research. If, and only if, you feel comfortable going forward then take the plunge and invest in property.
 
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realdeals

Active Member
Like many people I think that contacts in the industry can be worth their weight in gold. It may turn out to be a case of “you scratch my back and I will scratch yours” but it is imperative you stay in touch with your contacts as you never know when you might need them.
 
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sonamwsingh

New Member
About commission by the agent
Percent for commission
Marketing expenses aren’t the agent’s responsibility
Multiple price reductions mean the seller is desperate to sell

(moderated)
 
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Paolo Agostinelli

New Member
The article fails to mention that the median pay for a UK real estate agent is ~£40,000/year, while the average is much lower than that. Which means that only a minority of agents are actually successful. So, if you are interested in working with an agent to sell your property or to find a property to purchase, do some research and choose an agent who has a track record of consistently closing transactions in the area that you are focused on - not choosing a friend or family member who maybe has sold 2 houses a year, or who tries to leverage that personal friendship or blood relation to guilt you into hiring them to be your agent.
 
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Longterminvestor

Administrator
The bottom line is that you need an agent who is motivated by pay/bonuses or someone who simply enjoys the thrill of the industry. They need to have a reason to sell so that you can get the best price :)

Competition amongst colleagues is always a good one :)
 
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