5 Real Estate Agent Myths to Ignore
It’s not uncommon for buyers and sellers to have plenty of misconceptions about real estate agents. From the way they work to what they get paid, there are several myths floating around out there.
Before we get into some of the myths you should ignore, it’s important to understand, most real estate transactions probably involve two real estate agents. One agent will represent the buyer, and one will represent the seller. Now, let’s look at five of the most common real estate myths you should ignore.
Myth #1 – Once You Start Working with an Agent, You’re Stuck with Them
When you sell your home, you will sign a contract with a brokerage and an agent. Typically, the terms of this contract will last for six months to a year. While you may be stuck with the agent after signing a contract, it’s not always the case. Often, if things aren’t working out with the agent, you may ask them or the manager of the brokerage to release you from the agreement.
When you buy a home, you will often sign a contract with a brokerage and an agent. The terms of this contract will last for three to six months. Most buyers’ agents will work free for you until you find a home. While this process may take some time, the agent won’t get paid until you purchase a home, and the seller usually pays your agent’s commission too!
Myth #2 – All Real Estate Agents are Created Equal
Often, buyers and sellers think of real estate agents as the same as each other. However, they are not all as good as each other, and some are far better.
Sometimes, the agent you choose will be better at what you need than anybody else in town. For example, if you’re a physician and you’re relocating, choosing an agent that specializes in working with relocating physicians will be far better than just choosing any old agent.
In addition, a local agent provides advantages, and some simply work harder for you than others. Not all agents are created equal, and you will find this out if you hire an agent that doesn’t work as hard as another.
Myth #3 – Agents Get Paid a 6% Commission Every Time
Many buyers and sellers assume the agent they work with is making 6% of the deal no matter what. This isn’t the case.
First, the seller often pays the commission, and it will likely be split four ways. Each agent will get a portion, and so will each brokerage involved. In addition, the brokerage commission isn’t set in stone, and sometimes can be negotiated, if you are a repeat client or will complete more than one transaction with the agent.
Myth #4 – It’s Fine if You’re a Buyer and You Use the Home’s Listing Agent
Simply put, the listing agent for the property doesn’t represent you as the buyer. Unlike many things in our world today, real estate cannot just be purchased with a smartphone; especially if you want a good deal.
It’s important, as a buyer, to find your own real estate agent to represent you. Without proper representation, you may not get the best deal on the property you’re interested in.
Myth #5 – FSBO (for sale by owner) Homes are Off Limits if You have an Agent
This is simply not true. While some sellers of FSBO homes may prefer not to work with an agent, the majority will work with an agent if the deal is the right deal. Many FSBO sellers today understand it will be much harder to sell their home without allowing the buyer to have a real estate agent.
When you’re ready to buy or sell a home, make sure you have the right real estate agent on your side. The right agent can make a huge difference. Don’t believe everything you hear and before you believe a myth about agents, make sure you get the full story.