Top misconceptions about Realtors:
1) The Less Commission You Pay, The More In Your Pocket
False. Discount brokers claim they save sellers money by charging less. The truth is agents who are top producers and excel in this business do not discount services. Why? Because they don’t have to.
Discount Realtors can’t afford all the bells & whistles needed to make your house shine apart from all the others…I don’t care how “full-service” they claim to be, you get what you pay for.
A 2% commission reduction doesn’t amount to much when your price is discounted 10% or more because your agent couldn’t afford full market exposure. If they are that easy to negotiate their commission for themselves, imagine how well they will negotiate the selling price of your home for you. Period.
2) The More You Pay for a House, The More an Agent Makes
False. Ever hear a friend say this: “Every dime more you pay for that house makes the agent more money, so don’t trust that agent.” That’s a misunderstanding. The difference between $300,000 and $310,000 is about $150 to an agent. Do you really think the agent pays any attention to the commission difference of a $10,000 spread?
3) Agents Must Show You Homes On Demand
False. Unless you have a signed contract with any one of the many Realtors or that agent represents the seller, that agent you call doesn’t have to show you anything. You can’t call a local real estate office and demand service or demand to be shown homes, because agents don’t work for free.
If you aren’t planning on writing an offer with the Realtor you call, be upfront or don’t waste that agent’s time. But don’t expect that agent — who is likely to earn nothing — to be too excited about jumping in the car with you. That agent is not obligated to show you anything.
4) Realtors Will Say Anything to Make the Sale
False. Although it is true that some agents will lie to you, it’s unfair to paint all agents with such a broad brush. Top producing Realtors, those who enjoy a solid reputation in the community and practice real estate honestly and truthfully, are very careful to uphold a client’s trust.
Making misrepresentations or a false statement is against the law. Realtors who break fiduciary relationships or fail to disclose material facts are subject to prosecution and a loss of their license to sell real estate.
5) A Realtors Home Inspector Will Always Favour the Agent
Any agent worth her salt wants disclosure. Why? Because she wants what is best for her client but also, and this is not to be taken lightly, because she does not want to be sued.
Agents must disclose material facts. A buyer is always, without fail, better off knowing the truth about a house. Good agents care that a buyer receives full disclosure and are willing to fight for repairs on the buyer’s behalf or help the buyer cancel the transaction.
6) All Real Estate Agents Make Too Much Money
False. The average annual salary of a Realtor is less than $36,000 a year. You will find that about half the agents in any large brokerage close less than four deals a year. Nobody can live on that. Not once office fees are paid, insurance fees, association fees, overhead and expenses for the agent, and after all office supplies are deducted.