Many real estate property buyers and sellers are hesitant to go to a real estate agent because of some misconceptions. These misconceptions could be misleading when you are dealing with agents.
To help you get the best agent, you need to know how real estate works. So, here are the top 9 myths about real estate agents.
The More You Play, The More Agent Makes
It is not true that real estate agents earn more if you pay them more. Because of this misconception, buyers and sellers do not trust real estate agents.
This could be a hindrance to getting the best deal. Since you might have doubts about every transaction that you will make with your agent.
The Agents Are Required to Show Homes on Demand
Another misconception about real estate agents is that they have to show you a house. This only applies if you have signed a contract with an agent. The contract should state that the agent represents the seller.
Remember that they are not obligated to show you anything. They can even have the power to dismiss a client. This only applies if they use offensive language or offensive behavior.
Listing agents aren’t obligated to show you their listing as well, especially if you are already represented by another realtor. They can only work with you if you show them a request from that realtor.
Agents Get Kickbacks
Getting kickbacks is against the Real Estate Settlement Procedures Act. That is why it is not true that they receive kickbacks or favors from the real estate sellers.
Favors and kickbacks could be tempting to some agents. But if they got caught, they could lose their license for it.
Agents’ Typical Commission is 6%
The sales commission of 6% was the benchmark before, but that rule is changed. Most real estate agents would prefer to get a 4% up to 7% of commission based on the location.
What people do not know is that the commission paid by the seller is divided into four. They are divided into the seller’s agent, the seller’s brokerage firm, the buyer’s agent, and the buyer’s brokerage firm.
Put in mind that the commissions are negotiable. And it may vary depending on the type of property and price in the market.
Home Inspector Favors the Agent
Home inspectors check the overall status of the house. They check for cracks, crevices, or other things that aren’t functioning well. Thinking that the house you are selling is being inspected could be a little intimidating.
People think that to sell, the home inspectors are paid to favor the agents. This is untrue. Buyers hire inspectors to make sure that property is in good condition before they buy it.
According to PropertyOnline, for property sellers, it would be advisable to have your inspector to check your home before you put it on sale. On the other hand, a good real estate agent can help you when there are repairs needed. They can even help you when you want to cancel the transactions.
Going Directly to the Seller Will Save You Money
People believe that going straight to the property owner will help them save money. This could be true, but it isn’t always the case. Many things could go wrong when you deal with a seller on your own.
Agents are knowledgeable enough on how to deal with real estate transactions. They can give you ideas on what to check in a house inspection. They will give you sample questions to ask and advise you on how to negotiate with the seller.
You might encounter a lot during your home buying experience, and having an expert to guide you during that time will be a big help in landing a good deal.
Every Agent is The Same
The real estate market is getting more competitive these days. There could be a great number of real estate agents in the market. But remember that no two agents are alike.
There is nothing wrong with choosing the best agent that is perfect for your standards. They could have differences in their approach, presentation, and achievements. Some agents are more committed than others.
Take note that your agent’s expertise will help you get the best deal. So do not hesitate to choose the best agent for you and your needs. You should interview the agents before working with them.
There’s No Quitting Once You Work With An Agent
This myth isn’t true both on the seller and the property buyer’s part. If you are a seller, you would have to sign a contract with the real estate agent and their brokerage.
The contract should state the duration that you will work with them. Your bond with the agent and their brokerage could last for 6 months up to a year, depending on your negotiations. It will be great if you choose the best agent and brokerage.
If you are a real estate property or condominium buyer, you don’t usually sign a contract with them. You can work with property agents for free no matter how long it takes to find a home. But if you have already found a home with that real estate agent, it will be best if you stick with them.
However, if you are planning to switch them with another agent, communicate with them as soon as possible. Do not try to change them when you are already in the last part of the process.
Real Estate Agents Will Say Anything to Make the Sale
Property agents indeed earn by making a property sale. But that doesn’t mean that all of them need to lie to you. Remember that they have a reputation to take care of and they could lose their license for not disclosing material facts.
There are instances when some property agents would lie, but it is wrong to generalize them because there are agents who care about their reputation in the market. Be wise enough to choose the real estate agent that is honest and truthful.