Common myths about using a Realtor when buying your home
Having an Agent Costs the Buyer Money
False. Typically, the seller pays their agent a percentage of the home’s price, and the seller’s agent then pays your agent. 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. I value your relationship more than that, because my best marketing tool is referrals from happy home buyers.
Only the Listing Agent Can Show You the Property
False. All real estate agents have access to the MLS (Multiple Listing Service), and any Realtor can show you any property. In fact, I think the listing agent is the worst person to show you the property – they already represent the seller! There are even laws to protect you if the buyer’s agent and seller’s agent are from the same company.
I Have to Be Pre-Approved Before Talking to an Agent
False. But sometimes I think it should be true! You can contact me at any stage of the home buying process and I’ll be happy to answer questions about the process or properties. Still, I’m going to give you the information you need to get pre-approved because it will save you time by searching for houses in your real price range and comfortable budget. I don’t want you to end up broken hearted if you find a dream home that you can’t really afford.
Agents Receive Money if you use Their “Preferred Vendors”
False. The Real Estate Settlement Procedures Act (RESPA) prohibits agents from receiving money from lenders, title companies and inspectors; but I still think it’s a conflict of interest! Still, some companies partner real estate affiliated companies. Home buyers and sellers are not required to use an affiliate. There are a few benefits to a “one stop shop” but I always give you options for lenders, title companies, home inspectors and other vendors.