Upon entering this industry, I was shocked to learn that, at
one point in recent history, real estate agents were among the most despised
professionals, along with lawyers and politicians. Given that I became a
Realtor to help people, I couldn’t understand this disconnect. Throughout the
years I’ve ran into all kinds of agents; the good, the bad, and the in between.
Having a better understanding of what consumers go through, I’ve laid out some
common myths and complaints regarding our profession, and give my take on what
a good agent would do. At the end of the day, buying or selling a home is a
stressful event, and you want a Realtor that you can not only trust, but enjoy
working with.
MYTH: Realtors are only in it for the money. This is
probably one of the biggest misconceptions around. As with all industries,
there are many reasons why one decides to become a real estate agent.
Flexibility, building one’s own business, room for growth, involvement in
community; these are all big factors when considering this career. But make no
mistake, there are risks involved. Agents earn a commission only once a
property is sold, and building clientele is crucial. Most new agents spend 2-3
years creating the framework for their business, and usually the one’s that
provide the best service to their clients, and community, are the ones that end
up successful.
MYTH: Realtors will always want you to pay more, thus raising
their commission. This is another biggie. And also, largely false. For the most
part, your agent wants to help you find the property that meets your needs, and
gives you as many “wants” as you can get, within your budget. Considering that
the commission difference between a $300k property and a $310k property is
about $150, and you’ll start to see why agents don’t focus solely on price.
When it comes down to it, the best agent will show you properties that match
your criteria and budget, and will help counsel should you need guidance on
which property is right, regardless of purchase price.
MYTH: Realtors will cut their commission just to get your
listing. OR, the less you pay to list, the more you make. When it comes to
selling your home, you get what you pay for. Discount brokers might advertise
that they will save you money, but top producing agents that excel in this
business don’t have to discount their services. Why? Because their service
stands for itself, and they don’t have to. Anything less than a full service
agent will provide you with lower quality results, given they don’t have all
the bells and whistles full time agents do. Saving 1-2% on your realtor fees
probably won’t save you much if your property lacks full market exposure, thus
resulting in less offers. When selling your home, it’s worth paying the full
realtor fee to ensure you get the highest price possible, and have someone in
your corner when it comes time to negotiate.
MYTH: Agents will say anything to make a sale. This goes
back to #1, however take a minute to consider the “shady agent”. Given that top
producing agents rely on a solid reputation, it would behoove realtors to
practice honestly and truthfully. As we all know, bad news travels faster than
good. Realtors rely on good word of mouth and client referrals to continue to
grow their business. Making misrepresentations or false statements is against
the law, and realtors that break fiduciary relationships or fail to disclose
material facts can lose their license. The Realtors that care about their
business and livelihood will always tell you the honest truth.
MYTH: Real estate agents must work for you on demand. Unless
you have a signed contract with an agent, or you have a working relationship,
don’t expect to be able to call an agent at a whim to see a property. Most
realtors require lender pre-qualification letters before they will show you
properties, because this is the best indicator of a serious buyer. When a
fiduciary relationship is established, agents will work diligently to arrange
showings at your convenience and within the mercy of your schedule. However,
keep in mind that like everyone else, most realtors have other priorities, and
work hard to keep a balance between business and their personal lives.
MYTH: Real estate agents should tell you about the crime
rates, schools, and the ethnic make-up of a neighborhood. Federal Fair Housing
laws prohibit agents from discriminated against a number of protected classes,
which automatically prevents realtors from disclosing anything relating to
those protected classes. Most consumers are shocked to find out that an agent
is not responsible for informing you of crime rates, school ratings, or the
demographic makeup of a certain area. However, if that is important to you, your
realtor can provide you with resources to seek out that information.
MYTH: Realtors aren’t necessary resources; you can do their
jobs by yourself. While buying and selling real estate isn’t limited to
professionals, it is worth having a relationship with a trusted agent. Having
someone in your corner who is experienced in the intricacies of a transaction
is vital, given that purchasing or selling is a complicated process. And just
like a banker or insurance agent, Realtors can help you keep track of your largest
asset; your home. Since agents rely on good community standing, they can
usually be called upon as advocates for homeowner rights. When treated as a
partner, you will find your agent can provide you with invaluable service for
years.