Today I am going to sharesome myths about real-estate agents. Many people feel uneasy about dealingwith real estate agents. Like any other business, there are agents whodon't adhere to the standards or ethics we have agreed to in obtaining ourlicense from the National Association of Realtors. But this is a smallfraction of the agents who are in the business. And the "bad apples",end up ruining the whole thing for everyone!
1. Real estate agentsare not paid enough -
This is a commonmisconception that can be easily interpreted. This is because peoplebelieve that all an agent does, is put a sign up in their yard and enter theinformation on MLS. This is just a small fraction of what we do. Faircompensation is earned from real estate transactions. It is estimated thatan agent will spend 3 months working on a listing once it has been listed. Thisincludes finding a buyer and closing a deal. Agents also spend countless hourssorting through paperwork and making sure everything runs smoothly. Agentsmust pay for marketing, travel, expenses for employees, office expenses, as well as other miscellaneous expenses. Before they are compensated. The money that is spent to ensure smooth transactions will be worth it for the consumer. This is why we're here.
2. "I will getbetter deals if I work alongside the listing agent"
Some believe that workingwith an agent to list a property will help them get a better deal. Thismyth is often perpetuated by listing agents who will sometimes tell buyers thatthis is true. No matter if you use a buyer's representative or not, a homewill still sell for the same price. The difference is that if a listing agentis used to purchase a house, they will get paid twice the amount compared to abuyer agent. Your own representation is essential when you make one of themost important purchases of your lifetime. Listing agents are able torepresent both buyers and sellers.
3. "I can easilysell my home without the help of an agent."
This is not so much a mythas it seems unlikely. Only 9% were sold through For Sale By Owner in 2012.The typical home sold by an owner without the assistance of an agent sold for$30,000 less than the average home that sold through an agent (NAR). Ifyou are looking to sell your home to your family, that's one thing. However,trying to market and sell your property without a listing agent can betime-consuming, difficult, and likely to fail. Selling a house is not assimple as putting a sign outside. Sometimes, "by-owner" sellerspay upfront to have the property on the MLS. Buyer's agents may be able to see it. If their home doesn't sell they lose the money and will end up working for an agent. I believe that "by owner" sales can be a complete waste. Agents have years of experience and months of training to help homeowners sell their homes.
4. Multiple agents canhelp me find a house faster by using multiple buyers' agents.
Wrong. If you can'tstand the agent, find one and stay with them until the end. People don'trealize that one buyer's representative is standard when looking for ahouse. One buyer's representative will be able find and show you the samenumber of homes as 5 buyers agents.
5. I need to find ahome before I start the mortgage process.
Before you start your search,the first thing you need to do is start the mortgage process. The majorityof lenders are now completing the underwriting process prior to you finding ahome. That way, if you do find one, it is easy to close the dealquickly. You don't want to waste your time and the time of the realtyagent by visiting countless houses without knowing how much you canafford. Next, get financing and find your home.
