4 Myths About Real Estate Agents, Debunked
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 real estate myths about agents.
4 Common Misconceptions About Real Estate Agents
1. You Don’t Need A Real Estate Agent
This is probably one of the biggest misconceptions that first-time home buyers 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 during the home buying process. 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 today’s buyers 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 otherwise known as an experienced agent, 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 very 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 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 prospective buyers and sellers 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 one of the biggest real estate myths of them all. Most buyers and sellers 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 (the buyer’s agent and the listing agent), after the real estate broker’s fee is taken out.
Generally, the commission is 6% of the house’s purchase price. 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.
The Common Real Estate Myths Debunked
As you can see there are many real estate myths and misconceptions about 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.
Potential buyers and sellers looking for a new dream home or to sell their house will need a lot of help to make sure the home buying/selling process goes as smooth as possible. Good real estate agents have the experience and knowledge to help you get the best deals, avoid mistakes, and move through the real estate transaction smoothly.
The Negotiators are a new real estate agent organization that streamlines your search for a good agent. These top-performing agents otherwise known as Negotiators have a proven track record of getting their clients the best possible deal on their home purchase or sale. If you are house hunting or looking to sell, then look for a Negotiator near you.