4 Real Estate Agent Myths – We Squashed Them!
Myth 1: All the houses for sale are posted online; there’s no need to work with a Real Estate Agent
You’re forgetting about what I like to call the agent factor. Every neighborhood has a little soap-opera-level drama going on, and a well-connected agent knows their local market inside and out.
Let’s be real: you need a ninja negotiator to represent you when the contracts are flying around. Closing dates, inspection items, and timelines — it’s never ending! Once negotiations are in the rearview, then it’s about facilitating the entire process, keeping the deal moving forward, and closing on time.
Sounds like a lot, doesn’t it? That’s because it is.
Myth 2: Real Estate Agents will say anything to close the sale
Listen, it’s true there are some less than scrupulous agents out there who aren’t exactly shining stars of the real estate world. But it’s also completely unreasonable to broad-stroke an entire industry based on these agents alone.
Chances are, we all know someone who works full time or moonlights as agent — a friend, sister, or former co-worker. Can you imagine the people you know saying anything just to make a sale? No, me either.
Agents have a fiduciary responsibility to their clients and, legally, must represent them to the best of their ability. If they fail to do so, they are subject to fines and the loss of their license to sell real estate — in short, their livelihood!
Approach buying a home as the biggest purchase you will make; seek recommendations, read online reviews, and most of all educate yourself. Locate and work with a professional, responsible agent and reap the benefits of their representation.
Myth 3: Working directly with the Real Estate listing agent is the easiest way to buy the house
Even though an agent has listed a house, it doesn’t mean working with them directly is the best route to go. Not only is it not the best, it also could be the worst.
Let me explain: the listing agent is representing the seller and has a fiduciary responsibility to that client. As a potential buyer, you could work directly with the listing agent, but wouldn’t you like to have your own representation, someone who has only your best interests in mind?
While it’s true that in most states it’s legal to have some form of dual agency, where one agent is representing both the buyer and seller, it’s also true that the waters are easily muddied.
Personally, if I were buying a home, I wouldn’t want to work directly with the agent who is also responsible for negotiating the highest price for the seller. (Sounds like a no-brainer to me.)
Bottom line? Find your own representation and put the relationship in writing so all parties are clear on who is representing whom.
Myth 4: A low-commission Real Estate Agent will save you some money
This line of absolute thinking is dangerous. Sure, it might save you money, but it could end up costing you as well.
If you want to go with a low-commission agent, it’s essential to establish upfront what services they will be providing. Services such as: Will your home be advertised for sale anywhere other than the MLS? Will the agent be making calls to their network and holding a broker open house?
Or will the agent simply employ the post-and-pray method — in which a sign is planted in the front yard, the listing posted on the MLS, and you pray someone buys it. (Don’t laugh, it’s an actual thing.)
What about contract negotiations: Will your agent fully represent your best interests and walk you through the tedious paperwork? Counter the buyer’s offers and strategize timelines?
Who knows, maybe you fancy yourself a savvy negotiator and you don’t feel you need a ninja agent. Maybe you’re in a blistering hot market and the post-and-pray is all you need.
But what if you aren’t? Selling a home is a big deal! Don’t get caught with your pants down. Work with an agent who is dedicated to helping you sell your home rather than one with a hands-off approach.
For even more debunking, give us a call and we can get you connected with some of the best agents in town! Sun American Mortgage has been affiliated with top realtors in the valley for over 30 years.
Article provided by trulia.com