Top 10 Myths About Realtors
Think You Know All There Is To Being A Real Estate Agent?
Top 10 Myths About Realtors
It’s not all Open House Events, driving around in expensive cars and selling million dollar waterfront homes all the time. Being exposed to the Real Estate industry for a number of years now, I have heard just about all the questions and misinformed statements there are about the Real Estate profession.
How many of these Top 10 Real Estate Myths have you heard?
1. Real Estate Agents get paid to drive people around to look at houses all the time. It’s their job!
Not exactly true my friend. The only time a Real Estate Agent gets paid is when they actually close on a transaction. Sometimes, all of that driving around from house to house results in a zero commission for the Realtor if the client’s financing falls through or the deal falls apart all together.
2. Realtors just want your commission on the sale of the house and will do anything to make it happen.
Now, I can’t personally vouch for every Real Estate Professional out there, but I do know for certain, that my wife and I and anyone on our team, as well as hundreds of other Real Estate Agents I know personally, have the customer’s best interests both financially as well as personally at the forefront of their mind.
Besides the fact, that there is the Florida Real Estate Commission (FREC) that monitors and governs all real estate laws and practices, there is the foundational fact that most business done in real estate is based off referrals. Good news travels slower than bad, we all know that. So, a good experience for a new buyer or seller goes much farther for the benefit of the Realtor than a bad or neutral experience.
My wife and I are in the business to help people reach their goals for a new home.
3. Realtors are Rich, live in big waterfront homes and drive expensive cars.
If that were true, the world would have an over-abundance of the Real Estate Agents. While it is true, that an individual can make a good living as a Real Estate Professional, it is no different than any other job or profession. A person is going to reap the benefits of hard work, exceptional customer service, ethical practices and smart business sense.
4. Agents Get Paid the Entire Commission On A Sale
NO! I wish this were the case, but all Realtors must share their commission with their Broker and in most cases the other Realtor working the opposite side of the transaction. Some Realtors share up to 50% of their portion of the commission with their Broker.
5. You Will Get A Better Deal If You Buy Directly from the Listing Agent
Don’t believe this for a second. In most cases, the seller has a contract with the listing Real Estate Agent to sale the property for a fixed commission percentage. By having your own Real Estate Agent, you have someone looking out for your best interests in negotiations, market price, repairs and inspection as well as closing costs.
6. No Need To Talk To A Lender Until You Have Found the Perfect Home
While this may work for some buyers, in todays housing market, you run the risk of losing your dream home to someone who has already prequalified. For those who have already arranged their financing by getting pre-approved, they are in a better position to secure a contract. Your dream home may get multiple offers on the same day you make your offer. By not being pre-approved for financing, you stand a big chance on being looked over by someone who has their financing pre-approval letter in hand.
Another advantage of pre-approval, is that you will have a clear picture of a dollar amount you have been approved for financing and thus, not waste any time looking at houses you will not qualify for.
7. Real Estate Agents Have An Easy Job
So, you think Realtors just drive around all day looking at nice houses and sit around and collect commission checks without doing much? Again, if this were the case, the world would have an over abundance of Real Estate Agents. Real Estate is a very complicated and difficult profession.
Realtors are constantly marketing, dealing with the public both on the private sector as well as the professional. Organizing home repairs, inspections, pest control and various other professionals it takes to close on a house. Many times, the Real Estate Agent does a lot of work on a transaction for a buyer, and the sale never goes through. The Realtor does not get paid for their time unless the transaction for the home closes and is funded.
In order for a Real Estate Professional to be successful, it requires a full time effort. Real Estate is not a 9-5 job. It is a weekends, early mornings and working into the late hours of evenings profession.
Realtors are constantly working with various personalities of their clients and maintaining a high level of customer service. For most people, a real estate purchase is the biggest and most important financial transaction of their life, and the Real Estate Agent is responsible for making sure the best interests of the clients is at heart.
Real Estate is certainly not an easy job and not everyone is cut out for it. Realtors are special people who are able to deal with the emotional, rude and “time wasters” on a regular basis. Education for Realtors is a constant engagement to stay up to date and certified on new real estate laws and practices.
8. A Realtor Is Only Allowed to Show Their Own Listings or Those Listings of Their Sponsor Broker
Not at all! A Real Estate Agent who represents a buyer can show any home listed on the market. The sales commission for a Buyer’s Agent is no more or no less than any of their own listings or listings of the sponsoring Broker.
When a Realtor is representing a buyer and that buyer is interested in purchasing a home their agent also has listed, then that Real Estate Agent then transitions into what is called a Transaction Broker.
9. If Your Aren’t Getting the Offers You Want For Your Home, Your Realtor Isn’t Doing Their Job
Of course this is not the case! Prices of homes are driven by the overall market. Some houses in a neighborhood sale for more than others, but there are some many factor that go into that. Square footage, location, updated appliances and amenities, as well as desirability of the individual looking. The Real Estate Agent has no influence in those factors. You home is only going to sell to someone when the appraisal value of the home is at equal or less than the selling price. *(unless of course, a buyer wants to purchase the home for more than it is appraised for and is willing to bring cash to the closing to make up the difference)
10. Fast Expensive Cars and Million Dollar Water-Front Properties Shows How Good A Realtor Is
Not always! Some Real Estate Agents are very successful and drive nice, expensive cars no doubt. Those same Agents also list some very expensive, impressive large homes as well. That does not always relate to how good a Real Estate Agent is though.
The key to being an excellent and successful Realtor is not based on the car or listings they hold. It all comes down to customer service and customer satisfaction. People who trust and have confidence in their Realtor are those who are likely to refer that same Agent to their friends and family. Also, they are those who are most likely to use that agent for future transactions.
Find an agent that you can connect with, trust and know they are looking out for your best interests.