When we talk about real estate agents, we find a lot of misconceptions about them in the market. Buyers as well as sellers have created some myths about real estate agents that are rampant in the industry like how they work, how the entire process works, and how they treat the customers.
In any property related transaction, we have two agents, one from the buyer’s side and another from the seller’s side. Here we discuss five myths that are rampant in the market and whether there is any truth in them or not.
The Six Percent Commission
Many people believe that real estate agents get to keep the entire commission. If that were true, it would have been really nice, but sadly it’s not.
The truth is that the seller pays the commission, and no one person keeps the entire commission. Instead, it is split four ways: between the two agents and the two brokerage firms. Also, the commission is not permanent, it can be negotiated by the sellers.
Once You Get An Agent, You Are Stuck With Them
Now there is this thing called a contract. If you’re a seller, you will sign a contract with your real estate agent and the brokerage firm. This contract usually includes a time frame which can be anything from six months to a year. If you have signed this contract, then you are really “stuck” with your agents for the duration of the contract. But that doesn’t mean that the contract cannot be amended.
If you don’t think that your agent is representing you in the best way, then you can request your agent or their brokerage firm to release you from the contract before its end date.
Now if you’re a buyer then you don’t even have to worry about any contracts. Real estate agents work for the buyers for free until they find the home that they were looking for. So whether you are working with real estate agents in Georgia, Wisconsin, or anywhere else in the United States of America, you can hire the best agent near you and they will work for you for free no matter how much time it takes. It could be a month, a year, or even more. Sometimes buyers never purchase any property and the agent doesn’t get paid.
So before you become chums with your agent and have them take you out for a dinner or two, it’s better to have a few meetings with them so you can decide whether they’re the right fit or not. Always check their online presence and any reviews or testimonials that people have left for them. Even after that if you are not comfortable with them, make sure you let them know beforehand. The more time passes, the more difficult it’s going to be.
Same Agent For Buyers And Sellers
Nowadays, due to the competitiveness in the market, buyers get everything handed to them on a silver platter. Whether we’re talking about food or rides to the airport. So when it comes to buying a house, buyers automatically believe that all it takes is for them to own a smartphone and the properties will come to them.
But sadly, that is not the case. First time buyers, whether you’re buying a house for the first time, or you’re new to an area and don’t know anything about it, definitely need an advocate for them.
Now the seller’s agent represents the seller’s interests and profits. It is their responsibility to get the best price for the seller. Buyers working with sellers’ agents create a conflict of interest.
So, whether you’re looking for real estate agents in Georgia, California, Texas, or any other state in the United States of America, make sure you settle for the agent who lives and breathes in the local market. They probably know more about the community than anyone else. A good agent is one who knows the history of the properties like the back of their hands. They also know the best attorneys, lenders, inspectors in the neighborhood.
Any Agent Will Do
As far as the majority of people is concerned, they think that the term “agent” refers to everyone that has anything to do with the real estate market and that every agent is just as good as the next one.
The truth is that all agents are not created equals. There are agents and then there are the great agents who actually make a difference. A great agent can save you a lot of time and money and keep you away from all types of trouble.
Think of the agent who has been in the neighborhood for a decade. Nobody knows the streets and properties like they do. Nobody has the kind of relationships with inspectors, attorneys and other local agents like them.