4 Myths About Real Estate Agents Busted
July 26, 2021
As a first-time home buyer, you are bound to come across some common myths about real estate and real estate agents.
If you have no experience in the real estate market or you bought a home almost a decade ago with the help of a real estate professional, then you might believe the false information being circulated today.
It’s important not to fall for these myths and misconceptions about real estate professionals before getting into the industry. In this blog post, we will go through 4 common myths about the real estate industry.
4 Common Myths About Real Estate Agents
1) You Don’t Need A Real Estate Agent
This is probably one of the biggest misconceptions that first-time homebuyers have to face. You will always get unsolicited advice from people about how easy it can be to find a home on your own, and that you don’t need to work with real estate professionals. However, the reality is otherwise.
Flying solo in your home search can be a time-consuming and painful experience, especially when you are doing it for the first time. Check out our recent post that explains why hiring a real estate agent is better than flying solo when planning to buy a home.
The numbers reflect the same.
A majority of people choose to begin their search for a home online, but when it comes to deciding a home to buy, most of them (89%) turn to a real estate agent.
2) All Agents Are Created Equal
The second common misconception is that every real estate agent is equally adept at handling your home search. No, they are not.
Every real estate agent is different, just like it is with professionals in every industry. Every agent brings their expertise, and while some are good at what they do, some can turn out to be really bad at their job. You need to be wary when selecting a real estate agent.
Here are some tips on how to choose a real estate agent:
- Choose someone who has been in the field for a long time, and knows the neighborhood where you are planning to buy a home
- Choose someone who has clear communication and uses the latest technology
- Make sure you meet a few real estate agents before you settle down to one, as it will give you an opportunity to compare them
To get more tips on choosing a real estate agent, you can check out one of the blogs that we’ve written on how to choose a real estate agent.
3) Real Estate Agents Will Say Anything To Sell A House
Real estate agents must adhere to a strict code of conduct and ethical guidelines in order to survive in the industry. In fact, honesty is one of the most important traits to survive in the real estate industry. They are bound by ethics to disclose genuine information.
It is worth mentioning here that while there will be some real estate agents trying to bend the facts. But, a good real estate agent will always put the interests of their client at the forefront.
Moreover, referrals are a big source of traffic for real estate professionals. Providing false information to clients will taint the reputation of an agent, which a smart real estate professional would never want to happen.
4) Real estate agents make a lot of money!
This is probably the biggest of them all. People tend to believe that for every home sold, real estate agents make a fortune. In reality, however, they make only a small portion of the sale in the form of commission. Even that commission is split between two agents, after the broker’s fee is taken out.
Generally, the commission is 6% of the sale. So, if a house is sold for say $500 000 the commission will be $30 000, which will be split into two and the agents will receive only $15, 000. According to government data, a real estate agent on average makes $49,040 per year.
Summing It Up
As you can see there are many myths and misconceptions about real estate agents. Most of the good agents will make your home search simple, while also putting in a sincere effort to get you the best deal. This is the reason why it is always a great idea to hire the services of real estate professionals rather than trying to do it on your own.
If you are planning to buy your first home, and looking for expert help, then getting in touch with a Negotiator Recognized Partner (NRP) is one of the best things to do. With expert negotiation skills, these professionals will ensure that you get the best deal for your dream home without any struggle.