Whether you're in the market to buy, sell, or do both, having the right real estate agent can make your life a lot easier. Unfortunately, there are a lot of myths floating around about real estate agents and the services they provide. By getting a better idea of the realities behind these myths, you can make an informed decision when it comes to choosing an agent to represent you on your real estate journey.
Myth #1: An Agent Will Try to Get You to Pay More For a Home
While it's true that your agent makes a commission on home sales, this doesn't mean that he or she wants you to pay more than the home is actually worth when you're buying. First of all, agreeing on a sale price that's more than the home is worth will typically backfire when the property appraisal comes back. Secondly, real estate agents make, on average, a 5%-6% commission. This means that even a price increase of $10,000 doesn't add up to a significantly higher commission amount for your agent. At the end of the day, your agent is there to represent you and your best interests.
Myth #2: A Seller's Agent Collects the Full Commission on a Sale
Another thing to be aware of is that when you sell your home, your agent doesn't always collect that full 5%-6% commission. In reality, he or she often splits the commission with the buyer's agent. This means that your agent could be making as little as 2.5%-3% on the sale of your home. The same applies when you buy a home: the seller's agent splits his or her commission with your agent.
Myth #3: When Selling, a Low-Commission Agent Will Save You Money
Finding a real estate agent with a low commission may be tempting, especially if you're looking to pocket as much money as you can out of your home sale. In reality, however, a low-commission agent can actually cost you money. He or she may not have the experience or knowledge needed to price your home fairly, which could, in turn, lead to you accepting an offer for less than your home's true value.
There are a lot of widespread misunderstandings about real estate agents, what they do, and the services they offer. At the end of the day, the right real estate agent considers you a top priority and will use his or her expertise to make sure you get the most out of buying or selling your home.
To learn more, contact a resource that offers real estate services.