f/u: realtor myths and realities

shannanicole

I have to agree w/ Amber that open houses don't often sell homes.  1-2% of homes sell by that means.  It doesn't mean it doesn't happen, it just isn't likely.

Myth: Real estate agents make tons of money and is it an easy job.
Reality: We work lots of hours including evenings and weekends, have tons of overhead costs, and work based only on commission.  I think the average income for a realtor is something like $44k which without any benefits and tons of costs is not as pretty as it looks.

Myth: If I "go it alone" and find my own house, I can get a deal by using the listing agent.
Reality: Most listing agents have already negotiated with the seller on their listing agreement how much they are going to pay realtor(s) involved in a sale, so using a listing agent doesn't normally pay off and get you a better deal.  Make sure when buying a home you have representation looking out for YOUR best interest.  Working with a buyer's agent is free, so use a realtor's expertise.

Myth: Realtors don't care about trying to get their clients the best price and just want to push people into a home they can't afford.
Reality: While there are bad cookies in any business, most realtor as very caring and want to work hard for you to keep your business and referrals for the future.  The small amout of additional commission an agent would receive for helping you save a few thousand is minimal at best and not a reason to work less at getting you a great deal.

I am sure I could sit here all day long and come up with stuff like this.  I think the bottom line is that you need to find someone you feel comfortable with and trust.  In real estate-if it sounds too good to be true, it probably is, and don't feel bad about telling a realtor you are NOT comfortable with them and that you don't want to work with them.

brainstorm102

That's what we should have done! Our lady was referred (this was before I knew any of the girls on here.) She had our info, but we weren't looking to buy a house at the time (we had just gotten married and didn't want to spend the money.) She was really aggressive and hounded us constantly. (leaving messages & e-mails.) When it came time to actually look, she was too passive! I would do a bunch of online searches and find houses we wanted to view ~ she never found us one. Then when we made an offer, she told us that she doubted it would get accepted. But you know what? It did! I'm glad she worked for our friend, but I regret giving her our business.

Jody81

These are great points Shanna. Both of my parents are Realtor's and have their own branch with 12 employees. It is very hard work for the money! I love your last point, my parents really watch out for their clients and make sure they understand that just because you go pre-approved for a certain amount, doesn't mean that's what you can afford.

AmberOH

More good points!  It seems like it's such a misunderstood profession, and it does stink to think that there are Realtors out there who ruin the profession's reputation for all of us!