Even if you’ve never worked with a real estate agent before, you likely know plenty of people who have opinions about working with real estate agents. Some of those opinions may come from experience, and those people are worth listening to. However, many of the opinions about working with real estate agents come from popularized misconceptions about the profession — the idea that real estate agents are essentially con artists who are only in this for a commission.
That kind of misconception can make it easy to feel as though you might be better served buying or selling a home on your own. However, it would be a mistake to act on misinformation. In today’s blog, let’s break down some myths about real estate agents…and the truth behind those myths.
Myth #1 – Going It Alone Will Save You More Money
Many homeowners believe they’ll save more money by selling their home themselves, as they won’t have to pay a listing agent any commission. Homebuyers, too, sometimes assume that a real estate agent is an unnecessary expense. What they don’t realize is the unnecessary expenses that go into FSBO listings or homebuying on your own.
Staging, marketing, and promoting your listing successfully can all be quite costly, and a FSBO listing might be met with more skepticism. A real estate agent gives your listing the expertise and the credibility it needs. Additionally, a buying agent can help to negotiate the price of the home down, saving you thousands. Ultimately, not having that expertise at your side could cost you in the end.
Myth #2 – Real Estate Agents Get the Full 6%
There’s an idea that all real estate agents are wealthy and thus any money they expect for their services is simply ripping off their client. However, this is not the case. It’s true that 6% is a common commission amount for the sale of a house, but the real estate agent does not receive that entire 6%. Typically, it is split between the buying and listing agent. The real estate agent’s company may also receive a cut of that, and the real estate agent likely has expenses such as travel, marketing, and health insurance.
At the end of that, 6% of your sale price is not as much as you might expect. This means a real estate agent has to be truly good at their job to make the kind of money clients expect they make.
Myth #3 – Real Estate Agents Only Show Listings From Their Company
This myth is understandable — why would a real estate agent show another company’s listing? Don’t they want to sell their own listings? It’s true of course the real estate agent’s company wants to sell the properties they list, but the real estate agent also wants to be sure they can find the perfect listing for their client. Real estate agents who are part of their local real estate board can show listings from multiple companies, not just their own, so their clients have more options.
The best way to get past the myths about real estate agents is to do your research and to ask questions of those real estate agents. Contact VSells & Associates today to learn more about the real estate services we can offer when you’re buying or selling a home.