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Top 4 Misconceptions About Real Estate Agents

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When preparing to search for a real estate agent, it is important to understand the role of the agent. This includes how much time and effort he or she puts into selling your house or helping you find the home of your dreams. Unfortunately, there are a few misconceptions out there that need to be debunked so that you can get to the truth.

All Agents Have a Lot of Money Because They Make Big Commissions

The amount of money a real estate agent makes depends on the area in which they live and how many houses they are able to sell. It is important to point out that agents work a great deal of hours to see a sale occur and most sales take 30 days to finalize. If an agent sold two properties in a month's time with a commission of $2,500 to $3,000 each, they aren't considered rich by any means. 

It is Best to Go With the Agent Who's Listed on the For Sale Sign

When purchasing a home it is a good idea to partner with a real estate agent who will have your best interests at heart. The agent on the for sale sign has already agreed to do what is best for the seller, which may not be what is best for you. 

Agents Get Referral Fees from Title Companies and Mortgage Lenders

While it was once true that real estate agents could get referral fees for sending their clients to preferred mortgage lenders, home inspectors and title companies, this is no longer the case. Back in 1974, the Real Estate Settlement Procedures Act was enacted, which prevents agents from accepting any kind of monetary payment or gift in exchange for a referral. If a real estate agent is found guilty of this, he or she could lose their license. This protects you from being given bad advice or having to pay more to cover the referral fee. 

An Agent's Only Concern is Making the Sale

A real estate agent is going to want to make money to support their family, however, the agent knows the best way to do this is by building positive relationships. If the agent pushed and got you into a house that you didn't really want, you'd never use them again or recommend them to a friend or relative. Most agents rely on referrals and will listen and work hard to get you the best deal. It may cost them a little at that moment, but it will pay off in the long run.