5 Myths About Working With Real Estate Agents
This is a re-blog from ActiveRain colleauge Erica Ramus . . . she is a MYTH-BUSTER and tells it straight!
Myth #1 - Not every agent tows the NAR mantra and "Now" may not be the best time to buy.
Myth #2 - Calling the list agent directly gets the buyer the better deal. WRONG! It may get the listing agent a double-dip, but the buyer may not get representation.
Myth #3 - A two-for-one myth busted: Buyer Agents just want to sell something and at the highest price. WRONG. As Erica states, there are GOOD and BAD in all professions. Find a GOOD agent.
Read the post for the rest of the busted myths. Thanks Erica!!
I read a post online from a writer who was warning buyers about the dangers of working with a real estate agent. So here is my reply to that post. I'm not going to link to it because I don't want to give the writer any good SEO or “google juice” from a link. But you can guess what he said as the “gospel truth” by my 5 MYTHS.
MYTH #1
Contrary to what the national ad campaign put out by NAR, basically the real estate industry's “labor union,” now is NOT always the right time to buy. Yes, right after the real estate market started tanking in 2007, NAR ran national ads stating “Now is a great time to buy!” Some agents bought it hook, line and sinker. But many many agents never bought into the company line. Good real estate agents don't just parrot back the NAR lines, and don't jump up and down screaming “Now is a great time to buy!” no matter what the truth is, no matter what is going on with pricing trends, interest rates or local inventory.
The best real estate agents have their own brains, their own opinions, and put the needs of each buyer first. If a real estate agent parrots back this line to you, run for the hills and find a different agent if they cannot explain WHY it is a great time for YOU personally to buy.
I doubt in 2007 NAR had any clue that this housing slump would last so long or be so bad. So their national campaign now looks foolish, to me, and hopefully they get that that campaign didn't do much to help our image with the public.
MYTH #2
Calling the listing agent will get you a better deal. FALSE. The listing agent – you know, the person whose name is on the sign that you call – works for the seller! Not you! Unless you specifically have a buyers' agent agreement with an agent, that agent does not work for you. That means everything you tell that agent about you, your situation, etc, the listing agent is able to, and obligated to, report to the seller. This kills your negotiating power!
If you don't have a buyer's agent, GET ONE. The buyer's agent's job is to negotiate the best deal for YOU, not the seller.
MYTH #3
The agent has only two missions:To get you to buy something
To get you to pay as much as possible so the agent make the largest commission possible
Real estate agents sell houses, yes, but they also do so much more. They counsel, advise, and are there to guide you through this sometimes complicated process.
There are good agents and bad agents, just like in any profession. The GOOD agent isn't there to push the buyer to buy something, anything. The GOOD agent cares about the buyer and wants to find the perfect house for that client, at the best possible price.
Top agents work mostly by referral. What that means is that the agent lives off of REFERRALS from their friends, past clients, and people they refer in to the agent. Do you think the agent would be in business long if the agent did a disservice to the buyer and sold them an overpriced home? Nope.
Oh, and as for point 2 there, the larger commission argument, it doesn't hold water either. The extra money received by making a buyer pay more for a house is small in comparison to the future referrals happy clients send my way.
An extra $10000 you might pay on a house if I am a poor negotiator, or only out for the bigger buck, results in maybe $300 to the broker. And then the agent splits that with the broker. So that extra $150-200 in the agent's pocket looks pretty small in the offset of future business lost. Good agents don't even consider this an argument. We think about our clients and their needs/results first, not ours.
MYTH #4
Anything the agent says that is GOOD or POSITIVE is a result of that agent wanting to sell you a house, any house. Take it with a grain of salt.
Yeah, right. There might be some buyer's agents who LOVE all houses they walk into and urge their buyers to put an offer in on ANY house just to make a buck. Again, those agents are not the majority of agents out there, and they won't last long in this business.
A good agent tells you the truth – flaws and all – positive and negative – because the buyer needs to have truthful input to make a good decision.
MYTH #5
Agents will leave negative information out, and only disclose the flaws or problems if they are legally required to do so. For example, if the agent does not say anything about the school district, it is probably a poorly rated school district. Seriously??? If I don't talk up the school it must be a bad school?
Agents don't rate schools or crime rates. We don't look up in the State Police database to see if any sex offenders or drug dealers live next door. That's up to the buyer to do, via his or her own research. We cannot legally tell you “this is a great school but one district over is bad.” That's a value judgement, and could be considered steering or discrimination so most realtors run for the hills if a buyer asks this. We point you at the proper website or give you a phone number to call, but we cannot and do not make these kinds of judgements.
Please take into consideration that ALL professions have good and bad people. Some people will always be out for their own best interest and will try to sell anything to anyone for any price. You need to interview several buyer's agents and pick the one who seems to be honest, experienced, knowledgeable, and works well with your personality.
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Erica Ramus, Broker/OwnerREALTY EXECUTIVES300 Mauch Chunk St. APottsville PA 17901Phone 570-622-6006 ext 301 Private fax 1-866-734-4256Click for Pennsylvania Consumer NoticePA License RM420589
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Erica Ramus is Broker/Owner of Realty Executives in Pottsville, PA. If you're looking for a PROFESSIONAL to represent you in all of your Schuylkill County real estate needs, call Realty Executives at 570-622-6006. Serving all of Schuylkill County ... Pottsville, Orwigsburg, Schuylkill Haven, Auburn, Pine Grove, Frackville, Minersville, Ashland, Shenandoah, Port Carbon, Palo Alto, St. Clair, Barnesville real estate. Click on the link above to search Pottsville PA homes for sale or anySchuylkill County homes for sale. We have all properties listed for sale in theSchuylkill MLS on our website -- free search! No registration is required!
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And for all your commercial needs in Schuylkill County check out Schuylkill Business for your Schuylkill County commercial real estate.
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