Common Misconceptions About Real Estate Agents
- You will hurt an agent’s feelings if you tell them you are already working to another agent. – When other agent’s approach you, the biggest courtesy you can show is by immediately making it clear that you already have representation. Additionally, you will sabotage your results if you attempt to work with several agents – nobody wins.
- Your agent gets a kick back from mortgage lenders, home inspectors, and other professionals they refer you to. – It is actually against the law for a REALTOR® to make any secret profit or receive remunerations from anyone other than their client without their client’s fully informed consent. The remuneration is prohibited from two sources: the other party to the transaction and a third party.
- If you pay less on commission, you will make more on your house. – Discount brokerages push this message but the truth is that the commission paid goes into the quality of advertising and expertise that is proven to bring higher offers. Like anything else, you get what you pay for.
- You will get a better deal if you buy directly from the seller’s agent. – Untrue. The seller’s agent is under fiduciary duties to protect the best interest of the seller. Although there is the option to agree to dual agency, you will most likely get a better deal if you have your own buying representation to negotiate on your behalf. Plus, you aren’t responsible for the buying agent fees!
- Real estate agents say anything to make a sale – It is against the law for REALTORS® to make false statements or misrepresentations. By failing to disclose all material facts, the real estate agent is subject to punishment ranging from substantial fines to the loss of their license. Although there are bad apples in every bunch, any reputable agent will not risk this.