4 Busted Myths About Using a Real Estate Agent

You see them everywhere, on the back of a local bus stop, in a shopping cart, neighbor’s lawn or on your Mom’s refrigerator, the elusive real estate agent. They are a misunderstood breed but we are here to bust the “used cars salesman” image. Below are 4 common but busted myths about using a real estate agent.  

Having an Agent Costs the Buyer Money

False. There is no commission expense on the buyer’s part since the seller typically pays the agent a percentage of the home’s price.  So yes, technically, the more you pay for a house the more the agent makes. But the difference between $300,000 and $310,000 is about $150 to an agent. Agents value your relationship more and know that their best marketing tool is referrals from past clients.

Only the Listing Agent Can Show You the Property

False. Any agent can show you any property. In fact all agents have access to the MLS (Multiple Listing Service). This means that no matter who you use you have access to any listed property, not just those with their sign on the lawn. In fact, there are even laws to protect you if the buyer and seller are from the same agency.

I Have to Be Pre-Approved Before Talking to an Agent

False..but agents would like it to be true. You can contact an agent at any stage of the home buying process and they will be happy to answer questions about the process or properties. But when you request more of an agent, like to tour a property, don’t be surprise when they ask if you have been pre-approved. Why? Because it will save you and the agent’s time by searching for houses in your real price range as suppose to your ideal price range. This can save you time and heart break if you find the dream home that you later find out you can’t afford. Learn more about the benefits of being pre-approved here.

Agents Receive Money if you use Their “Preferred Vendors”

False.  The Real Estate Settlement Procedures Act has prohibited agents from receiving money from lenders, title companies and inspectors. However, some larger companies will often partner with or own other real estate affiliated companies. The customer is not required to use an affiliate but often recommended to by the agent. Although not required, using affiliated companies does help the process to become more seamless and often incentives are given to the consumer for doing so. There are benefits to a “one stop shop” but just be aware that you will not be hurting the agent’s wallet or feelings by opting out.

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