Myth #1: Buyers Don’t Need Agents.
Oddly enough, for many of the early years of real estate as a business, this is how it was. Individuals who were licensed real estate agents or brokers only represented sellers-giving them an unfair advantage. In fact, it wasn’t until the early 90s that agents were required to inform their clients if they were assisting the buyer in any way. Negotiating with your best interests in mind, accessing the most recent listings, showing you the properties that best meet your criteria, and taking care of all paperwork/documentation relating to the transaction in a timely manner are all duties that your buyer’s agent is required to fulfill on your behalf.
Myth #2: Selling Your Property on Your Own Saves You Money.
Marketing your property as “For Sale By Owner” without the support and expertise of a a real estate professional will ABSOLUTELY save you from paying out a commission. But, you will likely lose a lot more than you would pay a professional in the process. You may price your property too high and lose out on buyers. You may valuate it too low and lose thousands in the sale. Real estate agents have access to loads of information and provide factual comparative analyses to their clients in order to price the property appropriately. They also can list your property on multiple listing sites and market it so that it gets exposure to the right buyers. Agents have industry and community connections and can take responsibility for the entire process from photography to lenders to inspectors and movers. As your agent, real estate professionals are required to provide you with certain fiduciary duties like informing you right away of offers, readying all legal documents, and securing signatures, safeguarding you from potential pitfalls.
Myth #3: Real Estate Agents are Pad a Salary, Reimbursed Travel and Marketing Expenses, and Get to Keep ALL Their Commissions.
If you said this to any licensed real estate agent, you would most likely be met with a hearty guffaw. Like doctors, lawyers, and accountants, real estate agents are independent contractors that are required to operate under the supervision of a brokerage. They receive no salary, they are not reimbursed for any of their expenses, and half of their commission goes to their brokerage. So, if you’re represented by a real estate licensee in the sale of your property at a 6% commission rate, the agent sees only 3% of that. Typically that number is even less if the real estate professional is acting as the buyer’s agent. So, contrary to popular belief, unless that agent is selling very high dollar properties on a regular basis, he or she is probably NOT making a ton of money.
Myth #4: If You See a Property Online, That Means It’s Available.
Unless you are on the website of your favorite realtor, most of the online data you receive about properties isn’t completely up to date or accurate. Sites like Zillow, Homelight, or Trulia are aggregator sites and they pull their listings from a multitude of other sites. Depending on how often they refresh their data, a sold property may still show up as active or available, so you may be falling in love with a property that is actually “off market.” Sometimes a property sale will have contingencies and, if those contingencies are not met, the property will become active again. A real estate professional has access to this information in REAL TIME-as it happens. And, the last time I checked Zillow isn’t physically walking you through a property, pulling relevant comps, or available to take phone calls or texts with your questions and concerns.
Myth #5: You Only Need Pre-Approval AFTER You Find What You Want to Purchase.
You should always seek pre-approval from a lender BEFORE you start looking for properties you want. You don’t have to apply for a loan yet, but the lending process takes time and being pre-approved will let you know what you can afford. Your real estate agent will be able to suggest the appropriate lender for you so that you can get the approval you’re seeking because that can be an overwhelming process in itself. In the event that there are other interested parties, your pre-approval will be an advantage because you’ll have proof from a lender that you can afford to buy the property.
Myth #6: Agents are ALL the Same and They Only Want to Make a Sale.
Just like some doctors, lawyers, and accountants have their own areas of specialization, so do real estate professionals. When we take our exam and embark on the voyage of working tirelessly for our buyer and seller clients, we also promise to operate with honesty and integrity, keeping our clients’ best interests in mind over our pocketbooks.
While our ultimate goal IS to help our clients buy or sell properties, we’re about more than making a sale happen so we can earn a commission. We’re in it for the long drive-from the moment you contact us to the moment you close and beyond. At the end of the day, we’re here to make connections and build lasting relationships centered around helping people make well-informed, life-changing decisions.