There are a lot of unfounded myths floating around about real estate agents. What they do, what they earn, and their value to the housing industry are all often misunderstood by the general public.
Today, The Degnan Group is here to set the record straight. It’s time for these five myths about real estate agents to be debunked once and for all!
Online House Hunting Makes Agents Unnecessary
This myth couldn’t be farther from the truth.
Online marketplaces can’t give insider knowledge on neighborhoods, negotiate deals with connections in the industry, sign and explain technical documents, and so much more. Sure, those listings may help buyers and sellers tune into the market better, but they don’t eliminate the years of insight and knowledge that agents can share.
Instead, use the website as a jumping off point to familiarize yourself with the pricing and options in your local area, but don’t rely on them to buy or sell your home for you.
Agents Only Care About Commission
It’s time for this damaging myth about real estate agents to be debunked once and for all. Working as a real estate agent is a job just like any other. Of course, there may be a few bad apples, but most are honest and trustworthy. You’ll quickly learn that real estate agents care deeply about making your dreams a reality and find satisfaction in helping you secure the future you want.
In addition, there are laws that govern how real estate agents can work. For example, it’s illegal for agents to take a kick-back from anyone else in the industry like lenders or investigators. Lying or doing something dishonest to close the deal would not only jeopardize the reputation they’ve worked years to build, but also their ability to work in the future.
Just like any professional transaction, it’s important to read reviews and do your due diligence to find a quality real estate agent in your area. When you do, it’ll become clear that their job goes much deeper than just closing the deal and getting a commission!
The Commission Isn’t Worth It
Did you know that buyers never pay commission? Yep, you get all the services of a real estate agent for absolutely zero cost because the commission comes from the seller instead. But that doesn’t mean you shouldn’t hire a real estate agent when you’re selling as well.
Agent commission can vary but is often around 6% of the home’s worth. However, any agent worth their salt will save you hours of work and stress when it comes to closing your home and completing the stacks of paperwork that come with it.
Your commission pays the agent to take all of this off your plate and free up your time to spend with your family, at work, on your move, or a whole host of other things. For many, the commission is a small price to pay for peace of mind that your sale is taken care of.
Selling Agents Get the Entire Commission
Another myth floating around the real estate market is that selling agents pocket the entire commission. In reality, that commission is split, with half for the buyer’s agent and half for the seller’s. Then each brokerage that backs the agents will also take a cut of their percentage, so the reality is that your agent is making far less than you originally thought.
Everything in Real Estate is “Standard”
This myth couldn’t be farther from the truth. In fact, almost everything in real estate is negotiable. The “standard” 6% commission often touted in the industry can be negotiated up or down.
In addition, know that every hard and fast “real estate fact” is anything but. Every offer you make on a home should be tailored specifically to the house, the market, and the neighborhood it’s in. When you price a home, it should be done with the same thought and care.
The belief that you should always price high or offer low doesn’t work in the real world. Instead, a great real estate agent can help you navigate the subtleties of every deal so you always come out ahead.
Don’t Believe These Myths About Real Estate Agents
Next time you dip your toes in the real estate market, keep these five myths (and the facts that debunk them) in mind.
The commission you pay is worth it to save time and stress during your sale. In addition, remember your selling agent doesn’t get the entire amount and it will be split four ways. Also, it’s important to know that almost everything in real estate is negotiable, online listings haven’t made real estate agents obsolete, and most real estate agents value you and their reputation much more than securing a commission from the deal.
The simple truth is that real estate agents are an integral part of the housing market and processes. Whether you’re ready to buy or sell, call The Degan Group today to learn what we can do for you!