There have been many misconceptions about the work of real estate agents ranging from their work ethic to how they get paid. These false assumptions may discourage people from enlisting their help. More importantly, these same people deterred by these falsities may instead find themselves at a great disadvantage with no one to guide or represent them in the home buying or selling process.
To set the record straight, here’s a list of myths and truths about real estate agents:
Myth: Real estate agents always get a 6% commission
Fact: There is no standard commission for an agent when you sell your home. An agent’s commission is often negotiable and depends on the type of property and the local market. Because every market and property is different, the amount of commission varies as well.
Myth: Real estate agents get all the commission to themselves
Fact: When sellers pay commission, it is divided among several people: the seller’s agent, the buyer’s agent, and each of the agents’ brokerages. The commission is legally paid to the agents’ brokerages which then pay the corresponding agent.
Regardless of the amount of commission, the brokerage and agent will have their own share. The way the commission is split depends on each company’s business model and the productivity of the agent. From the commission the agent receives, they still have to deduct taxes and their social security.
Myth: The less commission you pay, the more money you make
Fact: Some brokers like to claim that they save sellers money because they charge less commission. However, top producing agents are not in the business of discounting their services. Full-service companies provide clients exceptional service and use more expensive marketing practices that attract more buyers and encourage higher bids.
Agencies that offer a discounted commission may not have the financial means to give your property full market exposure. This can result to lower bids and less buyers.
Myth: All real estate agents are the same
Fact: Every real estate agent has a different forte in relation to property and location. They have their own unique approach, styles, achievements, and specializations.
It’s important to have the right agent for certain transactions as well. When selling a home, it’s best to work with a listing or sellers’ agent because they have the fiduciary responsibility to look out for the seller’s interest just as a buyers’ agent does the same for the buyer.
Myth: Real estate agents get kickbacks from lenders, inspectors, etc.
Fact: Agents are prevented from getting any kickbacks from mortgage brokers, lenders, inspectors and the like by the Real Estate Settlement Procedures Act (RESPA).
When agents refer clients to other real estate professionals, it’s because they’ve worked with them before and found them to be capable and reliable. Good real estate agents are always looking out for their clients’ needs whatever these may be.
Myth: Real estate agents say anything to make the sale
Fact: Good agents won’t lie to their clients. Top producing agents strive to create a solid reputation in the community by maintaining their client’s trust and practicing honest real estate.
Looking to buy or sell a home in Somerset County, NJ? Let the Pagnotta Homes team assist you. Give them a call today at 908.436.794 or send an email at info(at)pagnottahome(dotted)com.