Debunking Myths about Real Estate Agents. This is a contentious topic that I would like to explore today. Let me start off by saying that in society, people tend to form their own opinions about any issue, topic or industry. I personally have my own opinions when it comes to certain social issues. The real estate world is no different. There exists a great deal of sources out there that will criticize real estate professionals for whatever reason. Websites, columinists’ and online magazines are guilty of this. These sources aim to spread mistrust in real estate agents and the profession as a whole. I like to call these sources “bad seeds.” They are trying to spoil the industry and therefore they should be ignored. With this in mind, I would like to look at a few of the top myths about real estate agents and debunk them in detail.
1. The more money you are able to sell your home for, the more money your real estate agent will earn.
This is a common myth in the real estate world. Those that buy into this myth do not have an understanding of how the commission system works. It does not matter whether you sell your house for $500,000 or $550,000, because it will hardly affect your agents paycheque. What if you agreed to pay your agent $5000 for the sale of your home? Whether you sold you home for $800,000 or $1000,000, you are still paying your agent $5000.00.
2. If you pay your real estate agent a lower commission, you will make more profit upon selling your home.
This is another common myth. So lets look at this further using an example. You hire a discount brokerage to put you home up for sale on the professional market. You pay $1000 to the discount brokerage to list your property, as opposed to the 2.5% commission that you may typically see. Upon doing this, you now realize that you are getting fewer services because this brokerage cannot afford “high tech” advertising and marketing materials that a top notch agent would use. You only get a few showings at your home and then realize that your home has sat on the market for a long time. On the other hand, if you paid the 2.5% commission to a highly qualified agent, you would have gotten all the services with endless marketing and advertising capabilities which brings in higher offers from a vast array of buyers who are represented by top agents. Do you see my point?