5 Myths About Real Estate Agents You Should Not Believe

Over time, rumors graduate as myths play a big role in the decision-making of a layperson. The real state sector could not remain immune to the myths which are wrong on so many levels. These myths help fuel the mistrust over people who are in an important business of home.

Like any other profession, there is a video possibility of some bad fishes who do not show credibility and character. But that does not mean that they are all cut from the same cloth. While the reality is real agents have to grind hard to make a living with honesty.

The myths about real estate agents are the primary reason why people are not ready to trust them. To your knowledge, there is hardly any myth that could be considered reality otherwise they are all misconceptions.

Let’s discuss the most common five myths, and unveil the truth behind them.

1) Real Estate Agents Are Not Required:

In recent times, the internet is fast taking over all walks of life. The internet provides a host of options to do the hard job of selling your home. Buyers get the same amount of help as they too can find properties online. Shall we deduce that real estate agents are not required?

NO, and it cannot be said any simpler.

Without denying the fact that some people may find it comfortable to look for the properties by themselves but the fact remains that the majority cannot afford such luxury and need help from outside. And how could be a better option than a real estate agent?

Most real estate agents have insight into the market, important legal knowledge, as well as experience to make effective real estate decisions. The Internet offers no substitute for experience.

If you decide to do the job instead of hiring an agent, the truth is you will have to educate yourself in great detail about the legal and financial aspects involved in selling or purchasing a property.

And in retrospect, it was just never worth the effort. Besides, at the end of the day, inexperience and less exposure will come to haunt you. And if you are about to buy or sell your house in NYC, you should hire a real estate agent.

2) Real Estate Agents Get 6% Commission:

Real estate agents work earnestly to win the bet in your favor. They assist you in selling your house at the asked amount and endeavor diligently to find a home catered to your needs and desires. Meanwhile, the thought stuck in the back of your mind is that you got to pay a real estate agent commission.

This is the most prevailing thought about real estate agents because sellers don’t know how that commission is shared among many stakeholders. The truth is you pay 6% to the brokerage, not the agent. It is then that brokerage return to an agent with the agreed percentage.

In addition to it, almost the same amount goes to the buyer’s agent out of that 6%. You never realize that they already helped you seal the deal with almost double higher than what you pay them. So in reality, your real estate agent will be earning a small amount of the 6% commission you are paying.

For example, out of $10,000 commission, your agent is going to get $2,500 to $3,000 out of it. And a 6% commission is never the final call. It’s negotiable and ranges between 4% and 8%.

3) All Agents are Cut from the Same Cloth:

There is this common perception that all agents are the same. People assume that arranging in-person visits and doing the negotiation is a walk in the park that everyone can do. But this is not what it takes to be a real estate agent. Agents have to comprehend the market in detail, have the important legal knowledge, and the ability to assess the properties realistically.

There comes a distinction between them. Some have a complete grip over their set of skills while many could be part-timers, offering meager commissions. Categorizing them all the same and then picking the ones who ask for a few actually goes against you as you would tend to lose more money because of a poor experience.

You can ask some important questions before hiring a real estate agent.

4) Agents Accept Kickbacks:

A lot of people feel certain agents get kickbacks. There could be exceptions but it is not the general outlook. A Congress bill RESPA (Real Estate Settlement Procedure Act) effectively restricted such unlawful activities in the real estate sector.

Even the agents, who might have a soft heart towards accepting kickbacks would stay behind due to the law. Ignorance of the law rests behind this myth.

5) You Cannot Switch the Agent Midway:

As a seller, if you have penned down a contract with the agent which might contain a range of six months to a year. That agreement may bind you with the brokerage but there is always a way out.

If you are not satisfied with the services or things are not working out for you, you may place a request to release you from the agreement.

As a buyer, there is hardly any binding upon you. It is only when the agent finds a home for the client that brings the buyer in certain restrictions and when buyers buy home agents get no commission.

If you’re a seller, you get into a contract with the real estate agent or the brokerage. That contract includes may range between six months to a year. Once you sign the agreement, you got to respect it. But that’s not always the case.

Therefore, it is highly suggested to research and read reviews if the agent is fit for your requirements. Better to evaluate their performance and inform them than to break ties after much hard work.

Final Thoughts:

The only reason this kind of myth gain currency is that people ignore to reach and read about the realities. NY Rent Own Sell is, therefore, working extensively to educate the dear clients and readers to save them from becoming the victims of these myths.

Related Article:

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Why Should You Hire Real Estate Agent in NYC
How to Find the Best Real Estate Agent in Your Area