4 False Truths About Realtors You Should Know Before Buying/Selling Your Home
People often go into buying or selling real estate with misconceptions about realtors and the role that the agent actually plays. What do realtors actually do? Do they take all the commission? Do I even need one?
Here are a few myths about working with real estate agents.
1. Agents get 6% commissions.
What a lot of people forget is that there are two sides to a transaction. In most cases, this means there are four mouths to feed (both agents, and both brokerages). Sure, it would be nice to get the full 6%, but it's just not the case. What you should know, is that the seller pays the commissions (in any normal case). If you are a buyer, you don't pay anything to the realtor. So, enjoy the benefits of having one!
2. All agents are created equal.
This couldn't be further from the truth. While all agents are required to have the proper licenses, they are not equal. Agents are not required to work full time. You can imagine that working with a full-time agent might have some benefits, versus an agent that has a full-time job during the day. Also, an agent that is from the area you are searching in will know the ins and outs of the place. Agents that have been around the area for a while tend to have connections with people you might end up needing too: a handyman, pool guys, roofers, etc.
3. You are stuck with the agent you pick.
This is not true. In fact, you only have to stick with your agent if you signed a contract stating you will do so. Usually there will be a seller's contract that you will sign for a 6 month period, but if the home doesn't sell, you are not obligated to stay with that agent. Most buyers don't sign an agreement. With that being said, agent's only get paid when they sell or find you a home, so please be mindful of their time. Like stated above, not all realtors are created equal, so if you notice early on that they aren't the one for you, cut it off before they waste anymore of their time and yours.
4. You don't need a realtor.
While this is technically true, it isn't advisable. Here's why. Let's say you are buying a home. you think you only need the Zillow app and the internet can just go through the listing agent for the paperwork Here's the reality. While yes, you might be able to find a home you like on your own, a buyer's agent is set in place so that you have someone there to negotiate the best price for the home on your behalf. They are there to make sure all paperwork gets signed and help facilitate the closing of your home. In most cases, you don't even pay them (as stated above), so it will serve you best to hire a realtor.