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This Old House - Do-it-Yourself

Myths About Real Estate Agents Not to Believe

Written by Posted On Wednesday, 20 February 2019 06:17
Real Estate Agent Myths Real Estate Agent Myths

Don't Fall For These Real Estate Agent Myths

In the wonderful world of real estate, there are a lot of street myths floating around. Should you believe everything that you read about a real estate agent? Just like in any other business, you should take what you hear with a grain of salt.

Some buyers and sellers love to fall for the common real estate agent myths. When this happens people usually make big mistakes they will often regret. Below I am going to share with you the some of the falsehoods of the real estate industry that need to be avoided.

What you need to understand is how to pick a Realtor that you'll be thrilled with. Choosing the best real estate agent often entails sticking with someone with a super track record.

There is no better recommendation than someone who is successful year in and year out.

Using the Same Agent is Smart

Some first-time buyers like to make things easy and go directly to a selling agent. At the end of the day, this may not be such a smart idea. When you go directly to the listing agent you are potentially creating a dual agency relationship. With dual agency the real estate agent represents neither party exclusively. The real estate agent is not allowed by law to give advice to either the buyer or the seller. They must be a neutral party so there are no conflicts of interest.

Not having a buyer's agent is a huge mistake that lots of buyers make. Without an agent in your corner fighting hard for your interests, you may be stuck overpaying for the property or find there was due diligence that should have been done. Finding out later that there was something in the area that bothers you equals TOO BAD!

A buyer's agent should know the area pretty well and be connected to many local services at the same time.

For instance, he or she may know that you need to be more careful in some parts of town than others. They might know which school districts are best. In other words, they will have your back and be a valuable resource.

In some states, it is even illegal to use the same agent as your interests as a buyer may not be protected. Dual agency has been banned in quite a few states.

A seller's agent tries to get the best price for his client. A buyers agent does the same - he or she will look after your interests. Understanding agency relationships is vital to a successful real estate transaction.

All Real Estate Agents Are the Same

This is one of the real estate agent myths that get a lot of people into trouble. A real estate agent is as different as the buyers or sellers he or she may deal with on a daily basis. The best thing you can do is conduct a careful interview process where you speak to multiple agents. There should be a serious vetting process so you end up picking a real estate agent you'll love.

The best real estate agents are usually the ones that have a track record of success year after year. They are doing something right consistently.

We are talking about big money when it comes to buying and selling homes. You want to make sure you go with a person that is going to do an outstanding job for you. It is about the feel-good factor.

Most of the time this means the person you like, is the same person you will trust. It is as simple as that.

Most Real Estate Agents Are Millionaires

The truth is that very few real estate agents are millionaires. This is a very competitive business and the commission paid by the seller does not go to just the selling real estate agent. It is shared between other sources as well. This is something that not all buyers and sellers are aware of when it comes down to it.

Most consumers have no idea about this one statistic that will make you perk up - 93 percent of all real estate business is done by 7 percent of the agents. Isn't that crazy? In most businesses there is an 80/20 rule where 8o percent of the business is done by 20 percent of the members. Not so with real estate. The numbers are really skewed to a select few.

No, very few real estate agents drive around in Porsche's and live in multi-million dollar homes. Is there any wonder why so many people pick the wrong real estate agent? The odds are stacked in your favor that you won't be happy with the agent you choose.

I Don't Need an Agent For my For Sale Sale By Owner Home

Yes, they are still out there. There are some sellers who think that selling their home is going to be an easy process and try to do it themselves. The thought process of a for sale by owner is usually to save money.  Most of the time, it will be hard to get things done unless you have an agent. The success rate of a for sale by owner is less than 15%. Not a healthy number.

Quite often for sale by owners don't save the money they thought they would, when all is said and done.

It is a good idea when you are selling for sale by owner to at least allow a buyer's agent to bring one of their clients. You won't save the full commission but you'll be exposing your home to a lot more buyers.

Keep in mind, most real estate agents are professionals, and their skill set should not be underestimated. Selling and buying a home is a complex process. Having professional advice at hand can save you a lot of money and cut down on the hassle factor.

I Am Stuck with My Agent

Most of the time, you do agree a fixed term contract with a real estate agent. However, if things go wrong, or the real estate agent does not live up to your expectations, you can ask to end the contract early. The truth is that things don't always work out. You might even want to look for an agent that says they will let you out of a contract if you're not satisfied. Tons of exceptional real estate agents will offer a satisfaction guarantee.

Buyers don't always sign a contract with an agent. A lot of the time a real estate agent can end up working really hard on a client's behalf to find the perfect home. It is important to appreciate your agent's time.

Before you decide to go with one specific agent, it is a good idea to make sure you will have a good working relationship. Check out the properties the agent has listed at the moment, and find out if he or she works in the part of town you would like to live in.

A real estate agent is so much more than a tour guide.

Final Thoughts

There will always be myths about real estate agents. Hopefully, after reading this article you have a little bit better understanding of how the real estate industry works. Not every real estate agent is the same. There are good eggs and bad eggs as well as everything in between. A planned vetting process will put you in the best shape to make a wise choice.

Additional Helpful Home Buying and Selling Resources

Use these additional resources to make smart decisions when you are going to be buying or selling a home. Proper education goes a long way to making the most sound decisions possible.

About the author: Bill Gassett is a nationally recognized Real Estate leader who has been helping people buy and sell Metrowest Massachusetts real estate for the past thirty-two plus years. Bill has been one of the top RE/MAX Realtors in New England for the past decade.

In 2018 he was the #1 RE/MAX real estate agent in Massachusetts. His real estate advice has been featured on, CNBC, RIS Media, National Association of Realtors, Inman News, Placester, RESAAS, Credit Sesame and others.

Bill covers real estate sales in the following Massachusetts communities: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge MA.

Reach out for his advice anytime.

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Bill Gassett

One of the top RE/MAX agents in New England over the last decade plus. Providing exceptional real estate services to buyers and sellers in the Metrowest Massachusetts area including the following communities: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge MA.

See my real estate website at Maximum Real Estate Exposure - one of the most visited real estate sites in Massachusetts.

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