Most Common Real Estate Agent Misconceptions

Myths about working with real estate agents – What does a real estate agent do?

Did you know when you work with a real estate agent to buy a house that you don’t actually pay them anything? Or how many houses is TOO MANY houses to ask your agent to show you? When, if ever, should you even contact an agent?

These are some of the most common real estate agent misconceptions. I come across them over and over again. But fear not! I’m here to tell you how it really is when working with a real estate agent, and to answer some of these points of confusion so you can march right up to your next agent in the future armed with all the confidence you deserve.

A Brief History of My Real Estate Agent Misconceptions

When we bought our first house about 7 years ago, I didn’t know any of these things. I’d never bought a house before, and no one really tells you any of this stuff. Ever.

My misunderstandings about realtors — A very excited me and a terrified
husband right after we bought our first
house.

I mean, when does it actually come up in conversation? People just expect you to know. It wasn’t until I became an agent myself and worked with many first time home buyers that I realized I wasn’t the only one in the dark.

I remember sitting in our agent’s office preparing myself to be “pitched to”. You know, that foreboding sense where you go into fight or flight mode and your palms get all sweaty as you prepare to awkwardly say no to whatever it is and then run for the door before they catch you? Or is that just a “Me Problem”?

Well anyway, there she was helping us fill out paperwork, driving us around to look at places, and guiding us through what to do next. But all along I’m thinking Alright, when is the other shoe going to drop? How is she getting paid to do all of this for us?

Misconceptions when working with Real Estate Agents

Well as it turns out, the agent who assists the buyer (the buyer’s agent) gets paid by the seller. Who knew! When the seller agrees to list their house on the market, they have already agreed to pay any agent that brings them the person who ultimately buys their house, a portion of the commission.

For more of a breakdown on where the money all goes, check out this great article from The Balance.

Now, a word of caution, there is a potential caveat with this. Some agents may charge a “filing fee” or some kind of “retention fee” if you, say, want to see 50 houses over 3 months and then decide not to buy any. But this should be in the paperwork you sign upfront to work with them, so you’ll know before you begin working together. It’s always a good idea to ask them if they charge any fees to begin with, of course!

Which Leads to the Next Agent Myth…

You aren’t asking to see too many houses, I promise! Maybe I just have the luck of working with the most considerate clients (which is indeed true) but everyone always worries that they are too picky, are asking to see too many houses, and/or apologizes when they change their mind.

Its okay! I wouldn’t be in this business if I didn’t LOVE going to look at a bunch of houses. You are making the biggest purchase of your life. You are allowed to want it to be as close to perfect as it can be. It is my job to assist you and if I can’t provide what you need, then maybe I need to re-evaluate my life choices.

This is true on the seller’s side too – there’s always a lot of back and forth on what price they should list it for, causing anxiety on their part. They want to list it low enough to sell (because if you didn’t know, price is the number 1 factor BY FAR that determines how quickly a listing will sell) but they obviously don’t want to leave money on the table if it would go for more.

So they start out with a number in mind, we look at some data, that number shifts accordingly, then more data comes in, that number shifts again, and so on. This, too, is OKAY. The thing about price is, the market determines value. It will go for whatever someone is willing to pay for it, so it may take some shuffling around before we determine what the right price should be.

Do I even really need a real estate agent?

These are all common misconceptions about working with a real estate agent, but I think the most common is this one. Most of the time the answer is yes you do need one, because an agent can provide excellent time and money saving services.

Think about having someone working for you, who knows the market, will protect your best interests in the deal, and has a network of trusted professionals to be on your team throughout the process.

Think of it like this: you’ve never bought or sold a house before. Now imagine how much better it would be when working with someone who has done it dozens, hundreds, or even thousands of times and knows exactly what to do at each stage.

If you are buying a house, you’re not even paying their commission so why wouldn’t you want a free expert in your corner? Unless you close the deal, the agent doesn’t get paid. So it’s in their best interest to help you.

Also most agents receive most of their business from referrals, even in today’s world, so they want you to have the best experience possible.

When should I get a real estate agent?

Almost all consumers look online before reaching out to an agent. Which is completely fine! But if I can give you just one piece of advice that will save you tons of time and heartache – talk to a mortgage lender to see how much they will loan you before you do anything else.

Nothing is worse than finding the perfect house and then learning you can’t afford it or the 25 others you spent time looking at because you were totally out of your price range. Some agents won’t even show you places unless you can provide something called a “pre-approval” letter from a lender.

Trust me, save yourself and everyone else some time. Get started the right way and talk to a mortgage lender or two. They will help you set goals and give you advice on things like boosting your credit score, how to qualify for more, and what options they have regarding the types of loans they offer.

Final Thoughts on Realtor Myths

It all comes down to doing some research and asking your agent the right questions. They really do get this stuff allll the time, so don’t feel like you’re out of line. I hope this clears up some of the most common real estate agent misconceptions that are out there. If you have further questions feel free to contact me or post a comment below!