1) You’ll get a better deal if you buy directly from the listing agent.
Not true. The seller has agreed to pay a set commission beforehand. If the buyer has their own agent, the commission is split between the listing agent and buyer’s agent. It makes little difference to the seller either way. In fact, it will likely help you, as a buyer, to have your own representative during negotiations.
2) Agents are paid the entire commission.
Definitely not. They are splitting the commission with their broker. It can be as low as 50/50.
3) Agents get paid to drive clients around or show property.
Not so. We only make money when a transaction is closed and funded.
4) If you’re not being offered as much as you want for your home, your agent just isn’t working hard enough.
Not really. An overpriced home just doesn’t sell. Also, unless it is a cash sale, your home will have to appraise. Your agent has no control over this. Just because your neighbor is asking, more for his home still doesn’t mean that is what it’s worth.. A home that doesn’t appraise will not be financed.
Realtors are rich.
While real estate can be a big money maker, it’s also true that 20 percent of the agents do 80 percent of the business. It may seem like an agent makes a lot of money at once on a transaction, but real estate is a very expensive business to be in. Yearly and monthly dues and fees to national and state associations, local MLS, fees, and fees to your broker. Plus, the agents pay for gas, signs, advertising, key boxes, websites, professional photography, health insurance, etc. Pretty much anything real estate related comes out of the agent’s pocket. Most are lucky to walk away with 1 percent of a transaction.
6) Realtors are just trying to make a sale, and will lie or stretch the truth to do so.
Again, definitely not. Not only are there legal liabilities, a realtor’s business is based off of referrals. They’d rather have you refer three friends than tell three friends about your bad experience.
7) An agent can only show his or her own listings, or those of their sponsoring broker.
Not true. A buyer’s agent can show any listing on the market.The agent will make “both sides” of the commission if they sell their own listing to one of their buyers. Although true, that is very hard to do. Most buyers never buy any home the agent currently has listed they usually purchase a home not listed with their agent.
8) Real Estate is an “easy” job since its just “driving around and looking at pretty houses.”
Real Estate is VERY hard. It is constant marketing, prospecting, and handling complex transactions. It can be a lot of time and effort with no guaranteed return. It can be extremely stressful. It’s very rewarding to find someone the right property, but until the transaction closes, it’s pretty high stress for the agent.
It’s rarely part time. Agents are constantly answering calls, emails and texts. Nights, weekends and holidays included. And it’s not easy either. Agents work with people on the biggest financial transactions of their lives. It’s emotional and complicated.
Not just anyone can be an agent. An agent has to be a special person that is knowledgeable, helpful, and very think skinned. We deal with emotional people, rude people and time wasters every day. We have to stay up to date with mandatory continued education classes and be great negotiators.
9) You do not need to talk to a lender until you have found a home to buy.
It is better to have financing worked out before you even start to look. If you do find a home you’d like to purchase, you’ll need a approval letter to place an offer. If your potential new home is in a popular area, it may get several offers on the first day. If you’re not approved, you could miss out. Plus, you want to know the amount you’ll qualify for, and not be looking at homes outside of your budget or possibly be able to afford more home than you originally thought.
10) Driving a fancy car or having a bunch of “million dollar listings” is a directly related to how good an agent is.
Not necessarily. Some agents have huge, very visible businesses. Some do not. There are plenty of great agents that provide wonderful, personalized service that do not have a billboard or magazine cover. Find an agent that you get along with, who understands your needs.
Not true. The seller has agreed to pay a set commission beforehand. If the buyer has their own agent, the commission is split between the listing agent and buyer’s agent. It makes little difference to the seller either way. In fact, it will likely help you, as a buyer, to have your own representative during negotiations.
2) Agents are paid the entire commission.
Definitely not. They are splitting the commission with their broker. It can be as low as 50/50.
3) Agents get paid to drive clients around or show property.
Not so. We only make money when a transaction is closed and funded.
4) If you’re not being offered as much as you want for your home, your agent just isn’t working hard enough.
Not really. An overpriced home just doesn’t sell. Also, unless it is a cash sale, your home will have to appraise. Your agent has no control over this. Just because your neighbor is asking, more for his home still doesn’t mean that is what it’s worth.. A home that doesn’t appraise will not be financed.
Realtors are rich.
While real estate can be a big money maker, it’s also true that 20 percent of the agents do 80 percent of the business. It may seem like an agent makes a lot of money at once on a transaction, but real estate is a very expensive business to be in. Yearly and monthly dues and fees to national and state associations, local MLS, fees, and fees to your broker. Plus, the agents pay for gas, signs, advertising, key boxes, websites, professional photography, health insurance, etc. Pretty much anything real estate related comes out of the agent’s pocket. Most are lucky to walk away with 1 percent of a transaction.
6) Realtors are just trying to make a sale, and will lie or stretch the truth to do so.
Again, definitely not. Not only are there legal liabilities, a realtor’s business is based off of referrals. They’d rather have you refer three friends than tell three friends about your bad experience.
7) An agent can only show his or her own listings, or those of their sponsoring broker.
Not true. A buyer’s agent can show any listing on the market.The agent will make “both sides” of the commission if they sell their own listing to one of their buyers. Although true, that is very hard to do. Most buyers never buy any home the agent currently has listed they usually purchase a home not listed with their agent.
8) Real Estate is an “easy” job since its just “driving around and looking at pretty houses.”
Real Estate is VERY hard. It is constant marketing, prospecting, and handling complex transactions. It can be a lot of time and effort with no guaranteed return. It can be extremely stressful. It’s very rewarding to find someone the right property, but until the transaction closes, it’s pretty high stress for the agent.
It’s rarely part time. Agents are constantly answering calls, emails and texts. Nights, weekends and holidays included. And it’s not easy either. Agents work with people on the biggest financial transactions of their lives. It’s emotional and complicated.
Not just anyone can be an agent. An agent has to be a special person that is knowledgeable, helpful, and very think skinned. We deal with emotional people, rude people and time wasters every day. We have to stay up to date with mandatory continued education classes and be great negotiators.
9) You do not need to talk to a lender until you have found a home to buy.
It is better to have financing worked out before you even start to look. If you do find a home you’d like to purchase, you’ll need a approval letter to place an offer. If your potential new home is in a popular area, it may get several offers on the first day. If you’re not approved, you could miss out. Plus, you want to know the amount you’ll qualify for, and not be looking at homes outside of your budget or possibly be able to afford more home than you originally thought.
10) Driving a fancy car or having a bunch of “million dollar listings” is a directly related to how good an agent is.
Not necessarily. Some agents have huge, very visible businesses. Some do not. There are plenty of great agents that provide wonderful, personalized service that do not have a billboard or magazine cover. Find an agent that you get along with, who understands your needs.