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 Myths About Real Estate Agents |
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Top 10 Myths About Real Estate Agents Debunking Real Estate Agent Myths What's True and What's Not Just
when you think you've found out everything you need to know about the "dirty,
little secrets agents don't want you to know" from a bazillion
of misinformed and, in all fairness, probably well meaning Web sites,
here's what you really need to know: Forget
the hype. Forget the books you need to buy, the online services you need
to subscribe to and start looking at what's really going on. Here's the
straight story: 1)
Real Estate Agents are Always Late for Appointments False.
There is no excuse for habitual tardiness among professionals. None. I
don't care if it's your doctor, your cable TV installer or your Realtor.
Every
person deserves respect, and respect is earned by providing what is
promised and being on time. If your agent has a god-like, self-deluded
impression of her or his own importance, find another. The
agents I work with are on time. Clients who listen to agents' excuses
allow tardiness to happen. Don't let a few bad apples give the
entire industry a perception it doesn't deserve. 2)
The More You Pay for a House, The More an Agent Makes False.
Ever hear a friend say this: "Every dime more you pay for that
house makes the agent more money, so don't trust that agent."
That's a misunderstanding. The difference between $300,000 and $310,000
is about $150 to an agent. Do you really think the agent pays any
attention to the commission difference of a $10,000 spread? 3)
The Less Commission You Pay to Sell, The More you Make False.
Discount brokers like to propel this myth. They claim to save sellers
money by charging less. The truth is agents who are top producers and
excel in this business do not discount services. Why? Because they don't
have to. Less-than-full-service
agents can't afford all the bells & whistles paid for by fll service
agents,
who tend to draw higher offers. It boils down to you get what you pay
for. A 2% commission reduction doesn't amount to much when your price is
discounted 10% or more because your agent couldn't afford full market
exposure. 4)
Agents Must Show You Homes On Demand False.
Unless you have a signed contract with an agent or that agent represents
the seller, that agent you call doesn't have to show you anything. You
can't call a local real estate office and demand service or demand to be
shown homes, because agents don't work for free. If
you aren't planning on writing an offer with the agent you call, be
upfront or don't waste that agent's time. But don't expect that agent --
who is likely to earn nothing -- to be too excited about jumping in the
car with you. That agent is not obligated to show you anything. Nor
is the listing agent obligated to show you a listing if you are
represented by another Realtor without a request from that Realtor. 5)
Agents Get Kickbacks from Lenders / Title / Inspectors False.
Since 1974, agents have been prevented from receiving any kind of
kickback or favor from real estate vendors. It's against the law. It's
against RESPA:
the Real Estate Settlement Procedures Act. Some agents are slower than
others to realize how the law affects them, but most have heard of RESPA
and would not jeopardize their license, regardless of the temptation. 6)
An Agent's Home Inspector Will Always Favor the Agent Any
agent worth her salt wants disclosure. Why? Because she wants what is
best for her client but also, and this is not to be taken lightly,
because she does not want to be sued. Agents
must disclose material facts. A buyer is always, without fail, better
off knowing the truth about a house. Good agents care that a buyer
receives full disclosure and are willing to fight for repairs on the
buyer's behalf or help the buyer cancel the transaction. 7)
All Real Estate Agents Make Too Much Money False.
An agent's average annual salary is less than $36,000 a year. You
will find that about half the agents in any large brokerage close less
than four deals a year. Nobody can live on that. Not once office fees
are paid, MLS fees and lockbox fees are deducted, overhead and expenses
for the agent are deducted, errors & omissions insurance and office
supplies are paid. 8)
Agents Sell Their Own Homes for More Money Than Yours False.
Busy agents and top producers don't have the luxury of time to waste
when selling their own home. They also understand the market better than
your average home seller, which means if a home isn't selling within a
reasonable period of time, it means it is priced too high. I
have witnessed first-hand what happens when agents put their residences
on the market. If they need to sell, they might even cut the buyer a
better deal than the buyer can get on the open market. After all, the
person most likely to be persuaded by a sales pitch is a person who
sells for a living. 9)
Agents Should Tell You About Crime, Schools & Ethnic Make-up of
Neighborhoods False.
Federal Fair Housing laws prevent a real estate agent from
discriminating against a number of protected classes, which
automatically prohibits an agent from disclosing anything remotely
relating to the protected classes. Therefore,
it may come as a shock to many people that agents cannot disclose crime
rates, school stats or ethnic mixes of neighborhoods. If that kind of
information is important to you, an agent can tell you where to find it
but cannot provide it. Those
who tell you otherwise are misinformed. 10)
Agents Will Say Anything to Make the Sale False.
Although it is true that some agents will lie to you, it's unfair to
paint all agents with such a broad brush. Top producing agents, those
who enjoy a solid reputation in the community and practice real estate
honestly and truthfully, are very careful to uphold a client's trust. Making misrepresentations or a false statement is against the law. Agents who break fiduciary relationships or fail to disclose material facts are subject to prosecution and a loss of their license to sell real estate. |